The name "ENI" was initially the acronym of "Ente Nazionale Idrocarburi" (National Hydrocarbons Board). However, through the years after its foundation, it operated in many fields including
contracting, nuclear power, energy, mining,
chemicals and plastics, refining/extraction and distribution machinery, the hospitality industry and even the
textile industry and news.
With revenues of around €92.2 billion, Eni ranked 111th on both the
Fortune Global 500 and the
Fortune Global 2000 in 2022, making it the third-largest Italian company on the Fortune list (after
Assicurazioni Generali and
Enel) and second largest on the Forbes list (after Enel). On the Fortune Global 500, Eni is the largest petroleum company in Italy, the second largest based in the
European Union (after
TotalEnergies), and the 13th largest in the world.[4][5] In 2023, the company’s seat in
Forbes Global 2000 was 81,[6] while in
Fortune Global 500 was 61.[7]
History
1950s–1960s
Eni was founded in 1953 by an existing company,
Agip, which was created in 1926 with the aim to explore for oilfields, and acquire and commercialize oil and derivatives.[9][10]
In March 1953,
Enrico Mattei was nominated Eni's chairman.[11][12]
Eni was originally an acronym for the company's full title Ente Nazionale Idrocarburi (National Hydrocarbons Board).[13]
After 1995, the meaning ceased to be relevant but the name was maintained.[14]
In 1952, the logo of the then nascent Eni was selected. The logo is a six-legged dog, an imaginary animal symbolizing the sum of a car's four wheels and the two legs of its driver.[15][16]
Starting in 1954, Eni acquired extensive exploration rights in North Africa, signing an agreement with the Egyptian government led by
Nasser while providing an active and equal role for the crude producing countries through the establishment of joint ventures.[13][17]
In 1957, Eni pushed for a similar agreement, known as the "Mattei formula",[18][19] to be signed with Persian Shah
Mohammad Reza Pahlavi and the
National Iranian Oil Company.[20][21][22]
In 1960, during the
Cold War period, Eni signed an agreement with the
Soviet Union for the importation of Russian crude at low prices.[23][24]
On 27 October 1962, Enrico Mattei's airplane mysteriously exploded near
Bascapè, on his way to
Milan from
Catania.[25][26]
His death was initially considered an accident, but later it was confirmed to be a murder with the aim to protect and hide important economical and political interests in Italy and especially abroad, as it is clearly stated in the records of the trial on the assassination of the journalist
Mauro De Mauro, who was investigating on the death of Enrico Mattei.[27]
During the following years, Eni signed joint venture contracts with foreign companies to supply crude from Egypt to Iran and from Libya to Tunisia.[28]
In 1963, Eni acquired a majority stake in
Italgas.[29]
1970s–1980s
In October 1973, after the
Yom Kippur War and the OPEC embargo[30][31] against the United States and the Netherlands by
OPEC members and Arab countries, a serious oil crisis occurred,[32] causing Eni to consolidate its position in the international market by signing an agreement with
Sonatrach,[33] the Algerian state oil entity for natural gas supply.[34]
In 1974, Eni signed an agreement with the Libyan government, followed by additional agreements with Egypt, Nigeria and Tunisia.[35][36][37][38]
During the mid-1970s, Eni planned a major infrastructure for transporting natural gas over long distances, by building a pipeline network of thousands of miles throughout Europe and the
Mediterranean.[39][40][41]
After the inauguration of the
Trans-Mediterranean Pipeline connecting Algeria to
Sicily through Tunisia,[42] Eni signs a new agreement with Libya for the exploitation of
Boùri,[43] the biggest oilfield in the centre of the
Mediterranean,[44] and develops its international role within the oil industry.[45]
From 1995 to 1998, Eni successfully put four share offers, as 70% of its capital assets were sold to private shareholders.[54][55][56]
As the price of oil collapsed in 1998 as other major companies Eni got to turn into a race through merges, international acquisitions, new explorations and the foundation of real super-companies.[57][58][59]
In 2005, the
Blue Stream pipeline, projected to supply gas from southern Russia to Turkey, was inaugurated as a joint venture between Eni and
Gazprom.[63][64][65]
Activist asset manager
Knight Vinke, who owns 1% of the outstanding shares of the company, began pressuring Eni's management to operate a spin-off of Eni's gas activities.
In its opinion, this would solve the undervaluation of the company and release up to 50 billion euros ($70bn) of hidden value.[69]
In 2010, Eni achieves key production milestone in Iraqi Zubair oil field.[70][71][72]
In February 2014, ENI discovered oil at its DRC offshore block.[92]
Since 2012, Eni has been selling off refining and marketing assets it owned in eastern Europe to increase profitability. By 2013 Eni already reduced its refining capacity by 13 percent. In May 2014 Eni agreed to sell their 32.5% share in Česká rafinerská a.s. (CRC), a refining company in Czech Republic, to MOL Group of Hungary.[93]
In June 2014, the company signed an agreement with
Sasol to acquire a 40% interest in a permit to explore 82,000-km2 offshore of South Africa's east coast.[94]
In 2014, Eni launched a new plan to convert its conventional refineries into
biorefineries: the first plant was in
Porto Marghera,[95] in 2019 the second one opened in
Gela.[96]
In January 2015, Eni in collaboration with
Vitol Energy signed a $7 billion contract with the government of Ghana. This agreement was reached to produce oil and gas at
Cape Three Points in the Western Region of Ghana, in an attempt to enable Ghana to meet its power and energy needs.
In August 2015, Eni announced the discovery of a huge gasfield off the coast of Egypt.[97]
In July 2017, the oil giant accepted responsibility for an
oil spill affecting the Fylde coast of Blackpool in the United Kingdom.[101]
In January 2018, Eni launched its new HPC4
supercomputer, one of the most powerful computing systems which allows a more effective and fast exploration of
oil and gas reservoirs.[98] Since February 2020 Eni replaced the HPC4 supercomputer with the new model
HPC5, which has three times the computing ability compared to the previous one.[102]
In March 2018, Eni reached an agreement with
MIT to fund fusion research projects run out of the MIT Plasma Science and Fusion Center (PSFC)’s newly created Laboratory for Innovation in Fusion Technologies (LIFT). The expected investment in these research projects will amount to about $2 million over the following years.[103]
The Rovuma LNG project was approved in May 2019 by the government of
Mozambique. The project is a joint venture between
ExxonMobil, Eni and
CNPC. Eni will focus on the construction and operation of the upstream facilities.[104][105]
In March 2021, Eni exited the Pakistani market and sold its assets to Prime International Oil & Gas Company.[106][107] The deal include the assets sold, interests in eight development and production leases and four exploration licences.[106][107] Prime International Oil & Gas Company, a newly established joint venture (JV) between Eni Pakistan local employees and
Hub Power Company.[106][107]
In 2018 Eni became the first
shareholder of the American company
Commonwealth Fusion Systems (CFS), a spin-out of the
Massachusetts Institute of Technology (MIT) in
Boston.[108] CFS aims to build a fusion reactor based on
tokamak technology, much more compact and cheaper compared to other existing projects such as the international
ITER.[109] On September 5, 2021, CFS successfully built and tested a 1: 1 scale prototype of a magnet based on HTS (High Temperature Superconductors)
superconductors. The experiment demonstrated for the first time that it is possible to create a fusion chamber where the confinement of the
plasma is ensured by this type of super magnets. This kind of fusion chamber will allow the reactor to reach very high temperatures, above 100 million degrees, necessary to make the controlled fusion of
deuterium and
tritium possible and thus to produce
sustainable energy.[110] In December 2021, ENI become the first energy company in the world to highly invest in magnetic confinement nuclear fusion, through a $1.8 billion partnership in CFS, alla Ng with
Google and
Bill Gates.[111]
In 2022, during the
Russian invasion of Ukraine, the major oil and gas companies, including Eni, reported sharp rises in interim revenues and profits. The rises are influenced by the prices of raw materials such as oil and gas which have significantly increased, due to their shortage.[112]
On 17 May 2022 Eni announced the procedures for the creation of an account with
Gazprombank in dual currency (
euro and
rubles),[113][114] in order to be able to proceed with the payment of Russian gas supplies, following the unilateral amendment of the contracts ordered by the
Russian Federation.[115] The decision was taken in agreement with the Italian government and does not violate the existing
sanctions. The
European Commissioner for EconomyPaolo Gentiloni and the competent Russian federal authorities have confirmed that payments will continue to be made in euros and that the conversion operations will be carried out by Russian clearing agents without the involvement of the
Russian Central Bank.[116][117]
In June 2022, Eni signed a joint venture with
QatarEnergy for the North Field East (NFE) expansion which will be the worlds largest LNG project and begin production in 2025.[118][119] Eni holds a 3.125% stake in the four LNG trains estimated to produce 8 million tonnes a year each.[120]
In October 2023, QatarEnergy signed LNG supply deal with Italy's Eni for 27 years. Affiliates of QatarEnergy and Eni signed a long-term sale and purchase agreement for up to 1 million tons per year (mtpa) of liquefied natural gas (LNG) from Qatar's North Field expansion project.[121]
After 10 years of force majeure, Eni,
Sonatrach and
BP resumed exploration in their blocks in the Ghadames Basin (A-B) and offshore Block C in August 2023, continuing their contract obligations.[122][123]
In January 2024, Eni acquired Neptune Energy for $4.9 billion. The list of assets includes Neptune’s involvement in the Geng North-1 gas field in
Indonesia, as well as projects in
Western Europe,
Australia and
North Africa. Neptune’s business in
Norway was purchased directly by
Vår Energi, a subsidiary of Eni. The assets in
Germany were released before the transaction, and will remain with Neptune, managed by the
shareholders as a separate group.[124]
In 2012, Eni reported liquids and gas production for the full year of 1,701 thousand
barrel of oil equivalent per day (kboe/d), this being calculated assuming a natural gas conversion factor to barrel equivalent, updated to 5,492 cubic feet of gas equal 1 barrel of oil from 1 July 2012.[133][151]
During 2012, 60 new exploratory wells were drilled, as 56 were drilled in 2011 and 47 in 2010. The overall commercial success rate was 40% (40.8% net to Eni) as compared to 42% in 2011 (38.6% net to Eni) and 41% in 2010 (39% net to Eni). In 2012, 351 development wells were drilled as well, as 407 in 2011 and 399 in 2010.[152][153][154]
In 2019 Eni reported hydrocarbon production for the full year of 1,871 kboe/d.[155]
In 2021 Eni reported hydrocarbon production for the full year of 1,682 kboe/d.[156]
In 2022 Eni reported hydrocarbon production for the full year of 1,610 kboe/d.[1]
In 2023 Eni reported hydrocarbon production for the full year of 1,66 kboe/d.[1]
Gas and power
Natural gas
In 2012, sales of natural gas were 95.32 bcm, down 1.44 bcm compared to 2011.[157][158][159]
In 2019 Eni reported sales of natural gas worldwide of 73.07 bcm.[155]
In 2021 Eni reported sales of natural gas worldwide of 70.45 bcm.[160]
In 2022 Eni reported sales of natural gas worldwide of 60.52 bcm.[1]
In 2023 Eni reported sales of natural gas worldwide of 50.51 bcm.[1]
Eni's power generation sites are located in
Ferrera Erbognone,
Ravenna,
Livorno,
Taranto,
Mantua,
Brindisi,
Ferrara and Bolgiano.[161][162] In 2012, Eni's power generation was 25.67 TWh.[163][164]
Overall Eni supplies 2,600 customers including large companies, power generation companies, wholesalers and distributors of natural gas for automotive use. Residential users are 7.45 million and include households, professionals, small and medium size enterprises, and public bodies located all over Italy and 2.09 million customers in European Countries. International sales include
Iberian Peninsula, Germany, Austria,
Benelux, Hungary, UK/Northern Europe, Turkey, France markets.[165][166][167][168][169]
Power generation
Eni's electricity generation sites in Italy, as of July 2018, are the following:[170]
Eni is the leader operator in refining and marketing of petroleum products in Italy.[171][172]
Eni is engaged in retail and wholesales activities in Central-Eastern European countries also (Austria, France, Germany, Italy, Czech Republic, Romania, Slovakia, Slovenia, Switzerland, Hungary).[173][174][175][176]
Eni's
market share in refining and marketing in 2019 was 23.7% in Italy, 12.3% in Austria, 7.7% in Switzerland, 3.2% in Germany and 0.6% in France. Eni also owned a 20% share of Ruwais refinery in Abu Dhabi.[177]
Retail sales operations are conducted under the Eni and
Agip brands. The re-branding of Eni's service stations in Italy and in the rest of Europe to Eni brand is underway.[171][178][179]
Engineering and construction
Eni operates in engineering, construction and drilling both offshore and onshore for the oil&gas industry through the subsidiary
Saipem.[180]
In April 2012, Eni in collaboration with ZEiTECS announced the world's first offshore rigless/wireline retrievable ESP system for Eni Congo.[181]
Azule Energy is an incorporated joint venture (IJV) between BP p.l.c. and Eni SpA. – combines the
Angolan upstream, LNG and solar businesses of BP p.l.c. and Eni SpA)
Eni India – is expected to start drilling at a deepwater block 2, near
Andaman and Nicobar Islands in Q2 of 2011 as it has received 2-year extension for the completion of drilling program. The program was delayed due to various environmental issues and scarcity of oil rigs. ENI India had won this block in 2005 and partners with
ONGC and
GAIL India.[183]
Eni Next LLC – Corporate Venture Capital of Eni Group
EniPower – generation and sale of electricity and steam technology
EniProgetti – engineering services
Eni Rewind – integrated service for environmental rehabilitation
Enilive SpA (formerly Eni Sustainable Mobility SpA) – company dedicated to sustainable mobility and the supply of decarbonised services and products
Eni UK – carries out operations in the British section of the North Sea, in the Irish Sea and off the coast of the Shetland Islands. Has been present in UK since 1964. In 2006 Eni UK's average net production of hydrocarbons was more than 141,000 boe/d.[184]
Eniverse – Corporate Venture Builder company for technological innovation
Export LNG Ltd – owns the Tango FLNG floating liquefaction plant in the
Republic of Congo
LNG Shipping SpA – sea transport of liquefied
natural gas
Saipem (30.54% owned) – Saipem is an oil and gas industry contractor. Saipem has contracted for engineering, oilfield services and construction both offshore and onshore through several pipelines, including
Blue Stream,
Greenstream,
Nord Stream 1 and
South Stream. It is a subsidiary listed on the Italian Stock Exchange.
Versalis (100% owned) – Versalis is a chemical company that manages the production and marketing of petrochemical products such as
olefines,
aromatics and intermediates (base chemicals),
styrenes,
elastomers and
polyethylene, plus in recent years a focus on green chemistry, being also able to count on a range of proprietary technologies, advanced plant facilities and a broad-based distribution network.[185]
In 2009, the European Commission filed formal antitrust charges against Eni. The commission believes that Eni has conspired to keep competitors from using its gas pipelines.[187]
In 2009 again, according to
leaked diplomatic cables, US ambassador Lanier told Washington that bribery allegations were made in
Uganda by Eni which at the time was in competition for oil assets in the country against Tullow Oil. The bribes were taken by the newly appointed Ugandan prime minister, Amama Mbabazi.[188]
After corruption charges against the subsidiary Saipem, Eni's CFO Alessandro Bernini had to resign and the new CFO Massimo Mondazzi took over in December 2012.[189]
Eni and Royal Dutch Shell stood trial in Italy over allegations of corruption in the 2011 purchase of a
big offshore oil field in
Nigeria known as OPL 245. Eni and Shell reportedly paid $1.3 billion in bribes.[190][191][192] On March 17, 2021, the Italian court of Milan fully acquitted Eni, its chief executive officer Claudio Descalzi and Royal Dutch Shell in the corruption trial for the Nigerian oil field OPL245.[193][194]Nigerian government stated that it is "disappointed" by the Milan court's ruling and "will continue to hold those responsible for the OPL 245 fraud accountable."[195] On July 19, 2022, the Attorney General waived the appeal before the Second Section of the Court of Appeal of Milan, making the acquittal sentences pronounced in March 2021 final.[196]
Sustainability
In 2012, Eni was included in the Carbon Performance Leadership Index, which scores companies based on their commitment to transparency and environmental leadership.[197] In the first half of 2014 Eni achieved the start-up of the Porto Torres green chemistry plant and the
Venice biorefinery, with the aim to increase its production of bio and green energy.[198][199] According to the 2017
Carbon Majors Report, which stores GHG emissions data on the largest company-related sources of all time, Eni accounted for 0.59% of global industrial
greenhouse gas emissions from 1988 to 2015.[200] In 2019, Eni was among the Top 10 companies by sustainability score in the
World Business Council for Sustainable Development (WBCSD) rank.[201][202] From 2020 to 2022, Eni is the first oil company with the most ambitious absolute emissions reduction target according to the report Absolute Impact 2022 by
Carbon Tracker Initiative[203] in accordance with the goals of the
Paris agreement to significantly lower GHG emissions and increase the production of renewable energy. In 2021, Eni renewables business reached an installed capacity from renewable sources of 1,188 MW.[204] In the same year, Eni achieved a reduction of its net Carbon Footprint Upstream by 26% compared to 2018.[205] In September 2021, Eni joined together with the
International Renewable Energy Agency (IRENA) in a three year partnership to promote renewable energy.[206][207]
Corporate structure
Board of directors
The board of directors is comprised as follows as of May 2023:[208]