FIELD TRIP TO ABU DHABI 19th September 2019
ADNOC Refining, Abu Dhabi AGENDA FIELD TRIP
. A strategic transformation
. The integrated expansion in Middle East
. Focus on the Arabian Peninsula
. Eni’s commitment towards energy transition
. Future targets and ambitions
2 MANAGING THE DOWNTURN FIELD TRIP
2014 2018
UPSTREAM +16% PRODUCTION 1.851 MLN BOE/D EXPLORATION +37% NET ACREAGE > 460,000 KM2 *
LNG +63% LNG MTPA CONTRACTED VOLUMES 8.8
DOWNSTREAM -50% REFINING BREAK-EVEN ~ $ 3**/BBL
RENEWABLES & FIRST RENEWABLES PROJECTS STARTED-UP DECARBONIZATION -20% UPSTREAM GHG EMISSION INTENSITY INDEX 21.4 tCO2eq/KBOE -35% CAPEX € 7.9 BLN FINANCIAL +123% Organic Free Cash Flow € 6.5 BLN -40% Net Debt € 8.3 BLN
*Includes 60,000 km2 expected in the first period of 2019 ** At 2018 scenario budget 3 AN EFFECTIVE STRATEGIC PATHWAY FIELD TRIP
EFFICIENCY INTEGRATION A DISTINCTIVE OPERATING MODEL A COMPLETE ENERGY OFFER TECHNOLOGY DEPLOYMENT DRIVING SUPERIOR RESULTS
ACHIEVING GEOGRAPHICAL AND BUSINESS DIVERSIFICATION
UPSTREAM LNG DOWNSTREAM CIRCULAR RENEWABLES UPSTREAM LNG DOWNSTREAM ECONOMYCIRCULAR RENEWABLES ORGANIC GROWTH EXPANSION ECONOMY
4 ENI’S OPERATING MODEL FIELD TRIP
AN EFFICIENT EXPLORATION MODEL
UNITARY EXPLORATION COSTS 2014-18 | $/boe CUMULATIVE DISCOVERED RESOURCES 2014-18 | bln boe
6 Eni 5 Eni 5 4 Avg Peers* Avg Peers* 4 3 3 2 2 1 1 0 0 Eni Avg Peers 2014 2015 2016 2017 2018 * Source: Eni’s calculation on IHS data * Source: IHS DUAL EXPLORATION MODEL FAST TRACK DEVELOPMENT CASH IN FROM DUAL EXPLORATION TIME TO MARKET | years
Industry* 3.9 4.5 8.4
$ 10.6 bln Eni 2.0 2.2 4.2 since 2013 From discovery to FID From FID to Start-Up
5 * Source: Wood Mackenzie ENI’S TECHNOLOGICAL EDGE FIELD TRIP
MAIN TECHNOLOGICAL DEPLOYMENTS
EXPLORATION DECARBONIZATION & CIRCULAR ECONOMY
DEVELOPMENT
DOWNSTREAM PRODUCTION
7,300 PATENTS AND >350 PROJECTS
DIGITALIZATION and NEW GENERATION EXASCALE HPC 6 AGENDA FIELD TRIP
. A strategic transformation
. The integrated expansion in Middle East
. Focus on the Arabian Peninsula
. Eni’s commitment towards energy transition
. Future targets and ambitions
7 ENI’S PORTFOLIO IN MIDDLE EAST FIELD TRIP
IRAQ
LEBANON TSC Zubair Field (2010) 2 Offshore Blocks (2018) RAS AL KHAIMAH COUNTRIES* 1 Offshore Block 5 (2019) 2019-22 UPS INVESTMENTS ~ $ 4.7 bln SHARJAH
3 Onshore ~ 600 ENI PEOPLE INVOLVED Areas (2019)
BAHRAIN ABU DHABI
1 Offshore • 2 Offshore Concessions LZ & US/NS (2018) Block (2019) • Ghasha Concession Offshore (2018) • 2 Offshore Exploration Blocks (2019) • 20% of ADNOC Refining (2019)
EXPLORATION OMAN PRODUCTION 1 Offshore Block (2017) & 2 Onshore Blocks (2019) EXPLO, DEV, PROD, REFINING
8 * Iraq, Oman, UAE, Bahrain, Lebanon ENI’S NEW INTEGRATED REGIONAL HUB MODEL FIELD TRIP
MIDDLE EAST REGION
EXP UPS DOT GLP R&M VERSALIS DES
9 AGENDA FIELD TRIP
. A strategic transformation
. The integrated expansion in Middle East
. Focus on the Arabian Peninsula
. Eni’s commitment towards energy transition
. Future targets and ambitions
10 EXPANSION IN THE ARABIAN PENINSULA FIELD TRIP
NEW EXPLORATION OPPORTUNITIES 10 blocks 7 FIDs DEVELOPMENT including GHASHA THE LARGEST GAS PROJECT IN UAE
BAHRAIN RAK PRODUCING FIELDS LOWER ZAKUM, UMM SHAIF/NASR ~ 50 KBOED (2019) EQUITY ABU DHABI SHARJAH 20% EQUITY INTEREST IN REFINING OMAN ADNOC REFINING 2 JOINT VENTURES TRADING CRUDE FEEDSTOCK AND REFINING PRODUCTS 4YP INVESTMENTS OILFIELD CHEMICALS IN UPSTREAM $ 2.5 bln
* AGREEMENTS SIGNED IN MONTHS LONG TERM PRODUCTION ~ 400 kboed 16 16 EQUITY NEW TECHNOLOGIES > 20 TECHNICAL WORKSHOPS WITH ADNOC TO EXPLAIN ENI’S TECHNOLOGICAL EDGE 11 (*) Upstream (13), Downstream (1), Versalis (1), Trading (1) EXPLORATION PORTFOLIO IN THE ARABIAN PENINSULA FIELD TRIP
BAHRAIN SHARJAH OFFSHORE BLOCK 1 ONSHORE AREAS A-B-C
ABU DHABI OMAN OFFSHORE BLOCK 52 OFFSHORE BLOCKS 1-2 ONSHORE BLOCKS 47-77 RAS AL KHAIMAH OFFSHORE BLOCK A
Eni’s Acreage 117 thousand km2 12 EXPLORATION ACTIVITY IN THE ARABIAN PENINSULA FIELD TRIP
AGREEMENTS SIGNED FUTURE DRILLING PLAN Nov 2017 Jan 2019 April 2019 July 2019
Oman RAK Oman 2019 2020 Block 52 Block A Block 77 Sharjah Area B Bahrain Block 1 (1 well) (1 well - drilling ongoing) Bahrain Sharjah Abu Dhabi Oman . Oil Block 1 Areas A, B, C Blocks 1&2 Block 47 . Significant unexplored potential IN 2.5 YEARS Oman Block 52 (1 well) . Gas & Condensate . Short Time-to-Market . Oil & Gas 6 Bid Rounds participation with tie-in to existing . New exploration play facilities for early production > 30 Blocks evaluated Abu Dhabi Block 2 (1 well)
. High Impact Gas & Direct Negotiations Condensate 10 . Exploration in areas served by existing facilities
SPENDING* 2019-2022 $ 310 Mln 13 *Eni’s share ABU DHABI – UPSTREAM DEVELOPMENT PROJECTS FIELD TRIP
IN PRODUCTION
NASR UNDER DEVELOPMENT
UMM SHAIF BU HASSER SATAH
ZAKUM
SARB
GHASHA HAIR DALMA HAIL
ABU DHABI
RUWAIS ABU DHABI ~ 200 kboed nd FROM 2 HALF OF NEXT DECADE EQUITY
2019 2020 2021 2022 2023 ≥ 2024
FID FID FID START UP START UP START UP • Dalma Gas • Hail & Ghasha • Deep Gas • Dalma Gas • Nasr 100 kbopd • Hail & Ghasha • Umm Shaif Gas Cap ph-1 • Lower Zakum Long Term • Lower Zakum Long Term • Umm Shaif Gas Cap ph-1 • Umm Shaif Long Term START UP • Umm Shaif Long Term ph-1 ph-1 - Early Production Prod. ph-1 • Nasr Full Field Prod. ph-1 • Nasr 100 kbopd • Lower Zakum Long Development Term ph-1 - Full Field • Deep Gas
14 FOCUS ABU DHABI: MAIN UPSTREAM KPIs FIELD TRIP
CAPEX AVG IRR AVG BREAKEVEN PRICE
$ 2.4 bln ~ 21% ~ $ 20-25 /bbl in the 4YP
15 CONCESSIONS ALREADY IN PRODUCTION FIELD TRIP
UMM SHAIF & NASR (10% W.I.) LOWER ZAKUM (5% W.I.)
EQUITY PRODUCTION (2019) 2P RESERVES LONG-TERM PLATEAU (> 2030)
~ 50 KBOED ~ 580 MBOE 1 MBOED (100%)
16 GHASHA PROJECTS FIELD TRIP
DALMA GAS HAIL & GHASHA 25% ENI SHARE; OPERATOR: ADNOC 25% ENI SHARE; OPERATOR: ADNOC
Sept. 2019 2022 2020 2024
FID START UP FID START UP
Peak Production (100%) ~ 50 kboed Peak Production (100%) ~ 300 kboed
17 DOWNSTREAM EXPANSION IN THE ARABIAN PENINSULA FIELD TRIP
ADNOC REFINING CAPACITY | Kbpd
>1,100 922 . CAPACITY CONVERSION . CRUDE FLEXIBILITY . EFFICIENCY
Today 2024
ENI REFINING CAPACITY +40% BY 2024 vs 2018 ENI’S REFINING BREAKEVEN FROM 2024 $1.5/bbl
18 A TRADING JV TO MAXIMIZE THE VALUE OF ADNOC REFINING (ADNOC GLOBAL TRADING) FIELD TRIP
NORTH EUROPE TRADED VOLUMES JV 35 MTA @full capacity
NUMBER OF CARGOES/YEAR ~ 900 @full capacity EAST AFRICA FAR EAST START-UP 2020
A UNIQUE AND HIGHLY INNOVATIVE CASE OF A GLOBAL TRADING COMPANY BETWEEN A NOC AND TWO INTERNATIONAL PARTNERS
19 AGENDA FIELD TRIP
. A strategic transformation
. The integrated expansion in Middle East
. Focus on the Arabian Peninsula
. Eni’s commitment towards energy transition
. Future targets and ambitions
20 CONFIRMING ENI’S STRONG COMMITMENT TOWARDS THE ENERGY TRANSITION FIELD TRIP
In our core business In new green business areas
UPSTREAM LNG DOWNSTREAM RENEWABLES CIRCULAR FORESTRY ECONOMY FORESTRY
Increased efficiency New products from organic and inorganic waste Growing share of gas Growth in zero carbon sources
CCUS (Carbon Capture, Utilization and Storage) Natural climate solutions NEW TECHNOLOGIES
21 ABU DHABI – CO2 MANAGEMENT STRATEGY (1/2) FIELD TRIP
I CCS + CO2 injection for EOR
@Plateau 2030
~ - 360 ktoneqCO2/y I GHASHA II 600 ktoneqCO2/y Low/Zero-Carbon Field Electrification
2 CCS + ~ - 200 ktoneqCO2/y II CO injection CO 2 for EOR LOWER ZAKUM UMM SHAIF / Low/Zero-Carbon III III FORESTRY CONSERVATION NASR Field Electrification 270 ktoneqCO2/y ~ - 310 ktoneqCO2/y
GHASHA Forestry Conservation LOWER ZAKUM UMM SHAIF NASR
UPSTREAM NET ZERO EMISSIONS* BY 2030 (SCOPE 1) 22 * On equity basis ABU DHABI – CO2 MANAGEMENT STRATEGY (2/2) FIELD TRIP
Carbon Capture and Storage Plants – Stored CO2 to enhance oil recovery in BAB field
Low/Zero-Carbon Field Electrification Dubai • Ph-1 Zakum Zakum Satah • Ph-2 Umm Shaif & Nasr & Das Island Zirku Electrical line (Electrification project) Island UZ Electrical line (existing) Jarnain Sweihan Dalma Photovoltaic ADCO Independent Power Plant Al Reyhada CCS Plant Al-Dhabbiya
NEB
Jumaylah Shanayel +CCS Habshan Rumaitha 6 CO2 injectors Gas Plant Barakah BAB CCS and CO2 injection for EOR Nuclear Power Plant 2 WAG CO2 injectors
23 AGENDA FIELD TRIP
. A strategic transformation
. The integrated expansion in Middle East
. Focus on the Arabian Peninsula
. Eni’s commitment towards energy transition
. Future targets and ambitions
24 FUTURE TARGETS AND AMBITIONS FIELD TRIP @2022 @2025 @2030 AMBITIONS UPSTREAM . PRODUCTION CAGR 2018-22 3.5% CAGR 3.5% 60% GAS . PROJECT BREAKEVEN < $ 30 /BBL
LNG & GAS RETAIL . LNG CONTRACTED VOLUMES 14 MTPA 16 MTPA > 20 MTPA . RETAIL 12 MLN CUSTOMERS
DOWNSTREAM . REFINING BREAKEVEN $1.5 /BBL (from 2024) . CHEMICALS LEADER IN RENEWABLE CHEMISTRY
DECARBONISATION . RENEWABLES > 1.6 GW 5 GW > 10 GW . GHG UPSTREAM EMISSIONS INTENSITY -43% vs 2014 . UPSTREAM EMISSIONS UPS CARBON NEUTRAL
FINANCIALS . CAPEX 2019-22 ~€ 33 BLN
. FREE CASH FLOW CAGR 2019 – 22 17%* . CASH NEUTRALITY $ 50 /BBL 25 *@2019 scenario