About Eni S.p.A.

Eni S.p.A. (Eni) engages in producing and selling energy products and services to worldwide markets. The company has operations in the traditional businesses of exploring for, developing, extracting and marketing crude oil and natural gas, manufacturing and marketing oil-based fuels and chemicals products and gas-fired power, as well as energy products from renewable sources. The company is implementing a strategy designed to reduce in the long term its dependence on hydrocarbons and to increase the weight of decarbonized products in its portfolio with the aim of reaching the target of net-zero greenhouse gas emissions by 2050 to pursue the most ambitious target of the Paris Agreement to limit global average temperature increase to 1.5°C by the end of the century. The company’s two business Groups include: The Natural Resources Business Group is committed to build up in a sustainable way, the value of Eni’s Oil & Gas upstream portfolio. Furthermore, it focuses on the development of projects to capture and store CO2 emissions and of carbon sink, mainly through initiatives of Natural Climate Solutions like the projects for forests conservation and rehabilitation, carried out mostly in developing Countries, that qualify as REDD+ projects. The Energy Evolution Business Group engages in the evolution of the businesses of power generation, transformation and marketing of products from fossil to bio, blue and green. In particular, it focuses on growing power generation from renewable energy and biomethane, it coordinates the bio and circular evolution of the company’s refining system and chemical business, and it further develops Eni’s retail portfolio, providing increasingly more decarbonized products for mobility, household consumption and small enterprises. The Business Group includes results of the Refining & Marketing business, the chemical business managed by Versalis SpA and its subsidiaries, the Eni Plenitude SpA Società Benefit (Plenitude), which combines renewables generation, gas and power retail and business customers, electric vehicle charging and energy services in a unique business model. In addition to these activities, this business company include the results of power generation from thermoelectric plants and the activities of environmental reclamation and requalification implemented by the subsidiary company Eni Rewind. Segments The company operates through Exploration & Production; Global Gas & LNG Portfolio; Refining & Marketing and Chemicals; Plenitude & Power; and Corporate and Other activities segments. Exploration & Production, which also comprises the economics of the forestry projects (REDD+) and projects for CO2 capture and storage and/or utilization. Eni’s Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as in LNG operations, in 37 countries, most notably Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, Mexico, the United States, Kazakhstan, Algeria, Iraq, Indonesia, Ghana, Mozambique, Qatar, Ivory Coast and the United Arab Emirates. In 2022, Eni’s average daily production amounted to 1,487 KBOE/d on an available- for-sale basis. Global Gas & LNG Portfolio: Engages in the wholesale activity of supplying and selling natural gas via pipeline and LNG, and the international transport activity. It also comprises gas trading activities targeting both hedging and stabilizing the Group’s commercial margins and optimizing the gas asset portfolio. In 2022, Eni’s worldwide sales of natural gas amounted to 60.52 BCM, of which 30.67 BCM was in Italy. The LNG business includes the purchase and marketing of LNG worldwide, with a large proportion of equity LNG supplies. Refining & Marketing and Chemicals: Engages in the manufacturing, supply and distribution and marketing activities of oil products and chemical products and in trading activities. The results of operations of the R&M business and of the chemical business have been combined in a single reporting segment because the two businesses exhibit similar characteristics. Oil and products trading activities are designed to perform supply balancing transactions in the market and to stabilize or hedge commercial margins. The R&M business engages in crude oil supply and refining and marketing of petroleum products to the cargo market, to large business accounts (airlines companies, bunker, public administrations, operators of privately-held networks of service stations) and to retail customers through a network of proprietary or leased service stations in Italy and in the rest of Europe. Production of refined products derives from both oil-based refineries and from manufacturing processes based on bio-feedstock. As of December 31, 2022, the balanced traditional and bio-feedstocks based refining capacity was 528 KBBL/d and 1.1 million tonnes/year, respectively. In 2022, processed volumes of crude oil and other feedstock, including renewable feedstock, amounted to 19.38 mmtonnes (of which traditional refinery throughputs were 18.84 mmtonnes and bio refinery throughputs were 0.54 mmtonnes) and sales of refined products were 27.79 mmtonnes, of which 21.32 mmtonnes were in Italy. Retail sales of refined products at Eni’s service stations amounted to 7.50 mmtonnes in Italy and in the rest of Europe. In the Chemical business Eni, through its wholly-owned subsidiary Versalis, engages in the production and marketing of basic petrochemical products, plastics and elastomers. Versalis is developing the business of green chemicals. Activities are concentrated in Italy and in Europe. In 2022, production volumes of petrochemicals amounted to 6,775 ktonnes. Plenitude & Power: Engages in the activities of retail marketing of gas, power and related services, in the production and wholesale marketing of power produced by both thermoelectric plants and from renewable sources, as well as in the e-mobility services. It also comprises trading activities of CO2 emission allowances to help stabilize/hedge the Clean Spark Spread (CSS) of gas-fired power production and the power sales commercial margin. As of December 31, 2022, Eni’s customer base was over 10 million retail points of delivery (gas and electricity) in Europe (of which 8.1 million were in Italy). In 2022, retail power sales to end customers, managed by Plenitude and subsidiary companies in France, Greece and Iberian Peninsula, amounted to 18.77 TWh. Retail gas sales, in Italy and in European markets, amounted to 6.84 BCM. Eni engages in the renewable energy business (solar photovoltaic and wind facilities both onshore and offshore) through Plenitude which engages in building, commissioning and managing renewable energy producing plants. As of December 31, 2022, the installed capacity from renewable sources was 2,198 MW, doubled compared to December 31, 2021 (1,137 megawatt (MW)). When considering installed capacity at other Eni's business segments, Eni Group installed capacity from renewables amounted to 2,256 MW as of December 31, 2022. With reference to the e-mobility business, as of December 31, 2022, Eni’s network of charging stations for electric vehicles included over 13,000 installed charging points distributed throughout the Italian territory. As of December 31, 2022, the installed operational capacity of Eni’s thermoelectric plants was 2.3 GW (gigawatt), with a total power generation of 21.37 TWh (terawatthour) in 2022. Corporate and Other activities: Include the main business support functions, as well as the results of the Group environmental clean-up and remediation activities performed by the subsidiary Eni Rewind. Strategy The company is executing a strategy designed to adapt its business model to and to grow in a low-carbon economy. In 2022, the company has also moved forward its decarbonization strategy by investing in the expansion of the production capacity of renewable electricity reaching 2.2 GW and in the extension of the network of charging points for EV, by strengthening biofuels production by starting a new business model to secure sustainable feedstocks, by financing a venture engaged in building a pilot plant to test a new technology of nuclear energy based on magnetic fusion, by progressing two projects for the underground permanent geological storage of CO2 in Italy and in U.K., and by leveraging its sustainability-linked financial framework to obtain financing at costs that reflect the company’s ongoing decarbonization effort, the latest example of which was a sustainability-linked bond that was placed among retail investors in Italy early in January 2023. The key elements of the company’s strategy are to maximize the integration of the portfolio along the entire energy value chain; leverage its proprietary technologies to underpin the development of new businesses to respond to the specific decarbonization challenges of its clients; develop its distinctive satellite approach, which consist of establishing entities focused on specific market segments or geographies, featuring tailored business models and capable of independently accessing capital markets to fund their growth and to unlock their intrisic values; action plan to achieve carbon neutrality in 2050; and leverage alliances and collaboration with a wide range of stakeholders to develop mutually beneficial solutions and synergies. Exploration & Production Eni’s Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as in LNG operations, in 37 countries, most notably Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, Mexico, the United States, Kazakhstan, Algeria, Iraq, Indonesia, Ghana, Mozambique, Qatar, Ivory Coast and the United Arab Emirates. In 2022, Eni average daily production amounted to 1,487 thousand barrel of oil equivalent per day (KBOE/d) on an available-for-sale basis. The company is advancing a second U.K. project, using its depleted Hewett field aimed at decarbonising the Bacton and Thames Estuary areas. In September 2022, the company applied for a carbon storage appraisal license for the Hewett field; the award of the licence is expected in April 2023 and the start-up by 2027. The company is pursuing other CCS opportunities also in North Africa and in the Middle East; it launched agri-feedstock projects through a vertical integration model in several countries (for example Kenya, Congo, Ivory Coast, Mozambique, Kazakhstan, Angola and Italy) to develop the agri-feedstock value chain from cultivation and agro-industrial waste and residues collection, to supply of certified vegetable oil for its bio-refineries in Italy. This model allows to securitize supply and to contribute to local development, without competing with food production. In October 2022, the first cargo of vegetable oil from Eni’s Makueni agri-hub in Kenya reached its biorefinery of Gela (Sicily Region). Production from Congo, Mozambique and Ivory Coast is expected to start up in 2023; and initiatives of both nature and technology-based carbon offset, mainly in developing Countries, like for example the REDD+ projects for forest conservation and rehabilitation in Zambia, Malawi, Tanzania and Mexico and the distribution of Improved Cookstoves for the promotion of Clean Cooking in Ivory Coast. The company has adopted comprehensive classification criteria for the estimate of proved, proved developed and proved undeveloped oil and gas reserves in accordance with applicable the U.S. Securities and Exchange Commission (SEC) regulations, as provided for in Regulation S-X, Rule 4-10. Proved oil&gas reserves are those quantities of liquids (including condensates and natural gas liquids) and natural gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, under existing economic conditions, operating methods, and government regulations prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain. Oil and Gas Properties, Operations and Acreage In 2022, Eni performed its operations in thirty-seven countries located in five continents. As of December 31, 2022, Eni’s mineral right portfolio consisted of 752 exclusive or shared rights of exploration and development activities for a total acreage of 308,550 square kilometers net to Eni, of which 643 square kilometers related to the CCUS activities in Norway and the United Kingdom. Developed acreage was 27,262 square kilometers and undeveloped acreage was 281,288 square kilometers net to Eni. In 2022 new leases were purchased or awarded in Qatar, Algeria, Egypt, Norway and Ivory Coast as well as the CCUS project in Norway for a total increase in acreage of approximately 18,900 square kilometers. Interest increases were reported mainly in Vietnam, Algeria and Congo for a total acreage of approximately 1,450 square kilometers. Relinquishment for the year related mainly to South Africa, Myanmar, Bahrain, Greenland, Ireland, Pakistan, Italy, Mozambique and Montenegro covering an acreage of approximately 39,650 square kilometers. Partial relinquishment was reported mainly in Angola, Indonesia and Norway for approximately 7,700 square kilometers. The gross undeveloped acreages that will expire in the next three years are related to exploration leases, blocks, concessions in Rest of Europe, in particular in Albania and Cyprus; Rest of Asia, in particular in Oman, Vietnam, Indonesia, Russia and the United Arab Emirates; North Africa, in particular in Morocco and Libya; Sub-Saharan Africa, in particular in Kenya, Ivory Coast and Mozambique; and Americas, in particular in Mexico. Italy Eni’s activities in Italy are mainly deployed in the Adriatic and Ionian Seas, the Central Southern Apennines and mainland and offshore Sicily. Eni operates 24 onshore and 49 offshore productive concessions. Exploration activities have been substantially abandoned in recent years. In 2022, Italy accounted for approximately 5% of Eni’s total worldwide production of oil and natural gas. In 2022, 33% of Eni’s domestic production came from fields in the Adriatic and Ionian Seas, 49% from the Central Southern Apennines and approximately 13% from Sicily. In the Adriatic Sea, activities in 2022 mainly concerned maintenance and production optimization intervention at the Bonaccia, Arianna and Basil fields to recover the residual mineral potential. Development activities of the Argo and Cassiopea operated gas fields (Eni’s interest 60%) progressed offshore Sicily. Start-up is expected in the first half of 2024. Rest of Europe Eni’s operations in the Rest of Europe are mainly conducted in the United Kingdom and in Norway, in this latter country through Vår Energi. In 2022, the Rest of Europe accounted for 12% of Eni’s total worldwide production of oil and natural gas. Norway: During 2022, Eni and the private equity fund HitecVision, shareholders of Vår Energi, have finalized the process of listing the investee at the local stock exchange, placing about a 16.2% interest. Following the closing Eni’s interest is 63.1%. In 2022, Vår Energi acquired 30% and operatorship of the PL820S and PL820 SB production licenses, north of the Balder field in the North Sea. The transaction is pending government approval; the 40% stake and operatorship of the PL 917 and PL 917B production licenses, west of the Balder field, through an equity swap with Aker BP in PL 956 and PL 985 licenses. The transaction has been approved by the authorities. Development activities mainly concerned: the Johan Castberg sanctioned project with start-up expected in 2024; the Balder X sanctioned project in the PL 001 license, located in the North Sea. The Balder project scheme provides for drilling additional productive wells, to be linked to an upgraded Jotun FPSO unit that will be relocated in the area that will support the development of new discoveries near to the area through upgrading existing infrastructure. Production start-up is expected in 2024; and the Breidablikk sanctioned project with start-up in 2024. The project scheme provides for drilling production wells to be linked to existing treatment facilities in the area. Exploration activity yielded positive results with the Lupa (Eni’s interest 31.54%), Snofonn (Eni’s interest 18.92%) and Skavl Sto (Eni’s interest 18.92%) discoveries in the Barents Sea, and the Calypso discovery (Eni’s interest 12.61%) in the Norwegian Sea. In January, Vår Energi was awarded twelve exploration licenses (five of which are operated) following the Awards in Predefined Areas 2022 (APA) by the Ministry of Petroleum and Energy of Norway. United Kingdom: In the year production start-up was achieved at the J-Area with three new development wells, as well as at the Jade South recent discovery by means of the linkage to the existing facilities. Development activities mainly concerned Talbot development project was sanctioned in 2022. Drilling activities start-up are planned during 2023 with first oil in 2024; work-over program at the Douglas field; and decommissioning planned activity of the Hewett Area. North Africa Eni’s operations in North Africa, with Egypt being discussed separately due to the size of Eni’s reserves in the Country, are mainly conducted in Algeria, Libya and Tunisia. In 2022, North Africa accounted for 17% of Eni’s total worldwide production of oil and natural gas. Algeria: In September 2022, signed an agreement to purchase bp’s assets in Algeria, including the two gas-producing concessions In Amenas and In Salah, located in the southern Sahara Desert. Eni finalized this agreement in February 2023 and acquired a stake of 45.89% and 33.15% in the mentioned concessions, respectively. During the year production start-up was achieved at the Berkine North area (Eni’s interest 49%) with two gas and two oil fields. Ongoing development activities concerned the drilling and completion of four additional production wells; and the Berkine South area with two gas and two oil fields just six months after the closing a contract agreement with a fast-track development. Other development activities concerned production optimization by means of work-over and rig-less activities in the production area of the Blocks 403 a/d and Rom North, Blocks 401a/402a and Blocks 403 and 404; and development program of the CAFC project in the Block 405b. Libya: Libya represents approximately 11% of the company’s total production. In January 2023, Eni signed an agreement with the National Oil Corporation of Libya (NOC) for the development of A&E Structures, offshore Tripoli. Production is expected to start in 2026 with gas volumes destined both to the domestic market and to Europe. The project comprises construction of an onshore Carbon Capture and Storage (CCS) hub. In November 2022 farm-out agreement with bp was ratified by relevant authority. The agreement provides for the acquisition of a 42.5% interest and operatorship by Eni in the Ghadames North, Ghadames South and Sirte offshore exploration permits. Egypt In 2022, the portfolio mineral interest was reloaded with the awarded of five exploration licenses as part of the Egypt International Bid Round for Petroleum Exploration and Exploitation 2021, out of which four as operator, for a total acreage of about 8,400 square kilometers. In April 2022 Eni signed a framework agreement with the Egyptian state-owned company EGAS to enhance gas production and LNG exports through the Damietta liquefaction plant. In January 2023 Eni signed a Memorandum of Intent (MoI) with EGAS to launch joint studies on identifying opportunities for the reduction of greenhouse gas emissions in the country's upstream sector, through initiatives that will lead to further valorisation of natural gas. Development activities of the Zohr project in the Shoruk concession concerned: EPCI activities for the construction of new submarine facilities and two additional treatment unit with a capacity of 6,000 barrels/d to manage and recover production water. The construction of further three units with a capacity of 9,000 barrels/d is being studied; and development drilling activities with the completion of three additional production wells with start-up in 2022. The rights of Eni to produce at the Zohr Development Lease will expire in 2037. Eni holds interest in the Damietta liquefaction plant with a capacity of 5.2 mmtonnes/y (per year) of LNG associated to approximately 283 BCF/y of feed gas. Exploration activities yielded positive results with near-field discoveries in the Sinai production concession with the Semiramis 1X oil exploration well; the Nile Delta concession with the El Qara South-1X gas well; and in the Meleiha concessions through three oil and natural gas discovery wells. New discoveries were started up by means of the linkage to the existing facilities and already in production. In January 2023, exploration activities yielded positive results with the Nargis-1 gas discovery in the non-operated Nargis Offshore Area. The discovery will be developed by leveraging Eni’s existing facilities. Sub-Saharan Africa Eni’s operations in Sub-Saharan Africa are conducted mainly in Angola, Congo, Ghana, Mozambique and Nigeria. In 2022, Sub-Saharan Africa accounted for 17% of Eni’s total worldwide production of oil and natural gas. Angola. In August 2022, Azule Energy, the equally owned joint venture by bp and Eni, started operations by combining the partners' respective assets in the Country. In 2022 production start-up was achieved at the Ndungu Early Production by hooking it up to the Ngoma FPSO; the Agogo Early Production Phase 2 in the Block 15/06 with the completion of the development activities and the installation of the required submarine facilities; and one well started up from Cuica field in the Eastern area of Block 15/06. In July 2022, reached the final investment decision (FID) by partners of the New Gas Consortium for the development of the Quiluma and Maboqueiro fields. The project, the first non-associated gas development in the country, is planned to start-up in 2026 with an expected production plateau at 330 million cubic feet per day (mmCF/d). Development activities concerned the definition phases of the Agogo Integrated West Hub for the full development of the western Block 15/06 area by means of the Ngoma and Agogo FPSOs; the Sanha Lean Gas Connection and Booster Gas Compressor project in Block 0 increasing associated gas production to feed the A-LNG liquefaction plant; and the FEED activity of the South Ndola e Sanha-Mafumeira connector projects for the construction of transportation facilities to put in production the residual reserves in the area. Exploration activities yielded positive results with the Ndungu-2 delineation well. Congo: In April 2022 Eni signed a letter of intent with the Republic of Congo to strength joint operations in the upstream sector targeting to increase natural gas exports. During 2022 additional development phase of the Nene-Banga field on the Marine XII block was completed with the installation of a new platform resulting production start-up. Ivory Coast: Development activities focused on the development project of the Baleine discovery in the operated offshore CI-101 (Eni’s interest 83%) and CI-802 (Eni’s interest 90%) blocks. Management believes this field to contain a large amount of hydrocarbon. During 2022 FID of both Phase 1 and 2 development projects was sanctioned. The development of Baleine Field is phased and fast-tracked with start-up of Phase 1 in 2023 and Phase 2 at the end of 2024. Exploration activities yielded positive results with the Baleine East 1x appraisal well. In December 2022, Eni was awarded a 60% interest and operatorship of the A6-C exploration block following the participation in the 6th Bid Round. The completion of the relevant oil contract is expected in early 2023. Nigeria: In August 2022 Eni finalized a twenty-year extension of the PSC agreement for the operated OML 125 block. In addition, Eni signed an agreement with the State company NNPC to recover past receivables related to the OML 125 development and production activities, starting in 2023. Development activities at the operated OMLs 60, 61, 62 and 63 blocks concerned workover and rigless activities to mitigate mature fields decline, as well as asset integrity program of the facilities and the installation of new compressor units to monetize additional natural gas volumes. During the year, additional production well was started up by means of the completion of drilling activity. Eni holds a 10.4% interest in the Nigeria LNG Ltd joint venture, which runs the Bonny liquefaction plant located in the Eastern Niger Delta. The plant has a production capacity of 22 mmtonnes/y of LNG associated with approximately 1,270 BCF/y of feed gas. Natural gas supplies to the plant are provided under a gas supply agreement from the SPDC JV (Eni’s interest 5%), TEPNG JV and the NAOC JV (Eni’s interest 20%). In 2022, the Bonny liquefaction plant processed approximately 830 BCF. LNG production is sold under long-term contracts and exported mainly to the United States, Asian and European markets by the Bonny Gas Transport fleet, wholly owned by Nigeria LNG, as well as is sold FOB by means of the fleet owned by third parties. Kazakhstan Eni’s operations in Kazakhstan comprised the Kashagan and the Karachaganak fields. In 2022, Kazakhstan accounted for 8% of Eni’s total worldwide production of oil and natural gas. Kashagan:Eni holds a 16.81% working interest in the North Caspian Sea Production Sharing Agreement (NCSPSA). The NCSPSA defines terms and conditions for the exploration and development of the Kashagan field, that was discovered in the Northern section of the contractual area in the year 2000 in an area extending for 4,600 square kilometers. Management believes this field to contain a large amount of hydrocarbon resources, which are expected to be developed in phases. The NCSPSA expires in 2041. In addition to Eni, the partners of the Consortium are the Kazakh national oil company, KazMunayGas, with a participating interest of 16.88%, the international oil companies TotalEnergies, Shell and ExxonMobil, each with a participating interest of 16.81%, CNPC with 8.33%, and Inpex with 7.56%. In 2022, production at the Kashagan field averaged 47 KBBL/d of liquids and 39 mmCF/d of natural gas net to Eni. Gas volumes undergo a treatment process and then are delivered to the national gas marketing and transportation company (KazTransGas); a part of the gas volumes is utilized as fuel gas. A part of the raw gas volumes (approximately 50%) is re-injected in the reservoir. The liquid production is stabilized at the Bolashak facilities and exported to Western markets through the Caspian Pipeline Consortium (Eni’s interest 2%) and the Atyrau-Samara pipeline. Karachaganak: Located onshore in West Kazakhstan, Karachaganak is a liquid and gas field. Operations are conducted by the Karachaganak Petroleum Operating consortium (KPO) and are regulated by a PSA that expires in 2037. Eni and Shell are co-operators of the venture. Eni’s interest in the Karachaganak project is 29.25%. In 2022, production of the Karachaganak field averaged 40 KBBL/d of liquids and 129 mmCF/d of natural gas net to Eni. This field is producing liquids from the deeper layers of the reservoir. During 2022 within the development plan of the Karachaganak field to increase gas re-injection treatment expansion in several phases, the installation and start-up of a fourth gas compression unit was completed. Ongoing development phases, sanctioned in 2020, include the drilling of three additional injection wells; a new injection line; and the installation of a fifth compression gas unit. Start-up is expected in 2024. In addition, in 2022 the last phase for the installation of a sixth compression unit was sanctioned. Start-up is expected in 2026. Rest of Asia Eni’s operations in the Rest of Asia are mainly conducted in Indonesia, Iraq and the United Arab Emirates. In 2022, Eni’s operations in the Rest of Asia accounted for approximately 10% of its total worldwide production of oil and natural gas. Indonesia: Development activities concerned the Merakes East project in the operated East Sepinggan block (Eni’s interest 65%), in the deep offshore eastern Kalimantan. The project was approved with the completion of the plan program definition; the Maha project in the operated West Ganal offshore block (Eni’s interest 40%). Plan program definition is ongoing; and upgrading activities of the gas compression facilities in the operated Muara Bakau block (Eni’s interest 55%). Iraq. Development activities consisted of the execution of an additional development phase of the ERP (Enhanced Redevelopment Plan) at the Zubair field (Eni’s interest 41.56%), which will allow to achieve a production contractual plateau of 700 KBBL/d. The production capacity and main facilities to treat the production plateau target have already been installed. Activities to increase treatment capacity are ongoing. The field reserves will be progressively put into production by drilling additional productive wells over the next few years by means of the collection facilities expansion and the completion of the water reinjection wells. In particular, projects ensuring water availability to maintain reservoir pressurization are being implemented. Myanmar: Eni transferred 90% participation interest and operatorship of the onshore exploration Block RSF-5 to Myanmar Petroleum Exploration & Production (MPEP). Pakistan: In December 2022 Eni finalized the divestment the entire upstream activity in the Country. Qatar: In December 2022, Eni closed the acquisition of a 3% interest in the North Field East LNG project in Qatar. United Arab Emirates: In March 2023 Eni signed a strategic agreement with ADNOC to explore potential opportunities in the areas of renewable energy, blue and green hydrogen, carbon dioxide capture and storage (CCS), in the reduction of GHG and methane gas emissions, energy efficiency, routine gas flaring reduction and the Global Methane Pledge, to support global energy security and a sustainable energy transition. Development activities concerned the Dalma Gas Development sanctioned project in the offshore Ghasha concession (Eni’s interest 25%) and the Umm Shaif Long-Term Development Phase 1 sanctioned project in the Umm Shaif concession (Eni’s interest 10%); and ramp-up production program of the Mahani field in the onshore Area B concession (Eni’s interest 50%). Americas Eni’s operations in Americas are conducted mainly in Mexico, United States and Venezuela. In 2022, Eni’s operations in the Americas area accounted for approximately 8% of its total worldwide production of oil and natural gas. Mexico: The development activities mainly concerned the full field development program of the operated license Area 1 (Eni’s interest 100%), already in production, with the completion of the first development phase. In particular: in February 2022 start-up of the Miamte FPSO in the Miztón field with production ramp-up in the area and oil export from April 2022. During the year drilling production wells and water injection wells were completed; and in March 2022 start-up of the Amoca WHP-1 platform. Drilling activities are ongoing. The development plan includes a second phase with the construction and installation of additional two platform in the Amoca and Tecoalli fields. In March 2023 exploration activities yielded positive results with the Yatzil discovery in the Block 7 (Eni operator with a 45% interest). United States: Eni holds interests in 46 exploration and production blocks in the Gulf of Mexico, of which 15 as operator; interests in 27 operated production blocks and interest in 1 non-operated block in Alaska; and Alliance area in Texas. Venezuela: In 2022, Eni’s production of oil and natural gas averaged 53 KBOE/d and accounted for approximately 4% of Eni’s total production. Eni’s production comes mainly from the Perla gas field (Eni’s interest 50%). Other petroleum interests held by Eni in the Country comprise the Corocoro field (Eni’s interest 26%) in the Gulf de Paria and the Junín 5 oil field (Eni’s interest 40%) in the Orinoco Oil Belt. These latter interests are immaterial to the company. Global Gas & LNG Portfolio Global Gas & LNG Portfolio engages in the wholesale activity of supplying and selling natural gas via pipeline and LNG, and the international transport activity. It also comprises gas trading activities targeting to both hedge and stabilize the Group commercial margins and optimize the gas asset portfolio. In 2022, Eni’s worldwide sales of natural gas amounted to 60.52 BCM. Sales in Italy amounted to 30.67 BCM, while sales in European markets were 27.41 BCM that included 2.43 BCM of gas sold to certain importers to Italy. Global Gas & LNG Portfolio Global Gas & LNG Portfolio engages in the wholesale activity of supplying and selling natural gas via pipeline and LNG, and the international transport activity. It also comprises gas trading activities targeting to both hedge and stabilize the Group commercial margins and optimize the gas asset portfolio. In 2022, Eni’s worldwide sales of natural gas amounted to 60.52 BCM. Sales in Italy amounted to 30.67 BCM, while sales in European markets were 27.41 BCM that included 2.43 BCM of gas sold to certain importers to Italy. Supply of Natural Gas In 2022, Eni subsidiaries’ total supply of natural gas was 60.59 BCM. In 2022, main gas volumes from equity production derived from Eni fields located in the British and Norwegian sections of the North Sea (2.5 BCM); Italian gas fields (2.1 BCM); Indonesia (0.8 BCM); Libyan fields (0.6 BCM). Supplied gas volumes from equity production were approximately 6 BCM representing around 10% of total volumes available for sale. A similar scheme applies to some Service contracts. Eni’s exploration and production activities are regulated by PSA or scheme similar in Algeria, Angola, China, Congo, Egypt, Indonesia, Libya, Mexico, Mozambique, Timor Leste in the JPDA area, Turkmenistan, certain assets in Nigeria, and Kazakhstan. Development and production activities in Iraq are regulated by a technical service contract. This contractual scheme establishes an oil entitlement mechanism and an associated risk profile similar to those applicable to PSA. Eni’s principal oil and gas properties are described below. For further information on main activities of the year see also “Significant business portfolio”. In the discussion that follows, references to hydrocarbon production are intended to represent hydrocarbon production available for sale. North Africa Eni’s operations in North Africa, with Egypt being discussed separately due to the size of Eni’s reserves in the Country, are mainly conducted in Algeria, Libya and Tunisia. Algeria: In September 2022, signed an agreement to purchase bp’s assets in Algeria, including the two gas-producing concessions In Amenas and In Salah, located in the southern Sahara Desert. Other development activities concerned production optimization by means of work-over and rig-less activities in the production area of the Blocks 403 a/d and Rom North, Blocks 401a/402a and Blocks 403 and 404; and development program of the CAFC project in the Block 405b. Libya: The rights of Eni to produce at its assets in Libya will expire in 2038 for Contract Areas C, in 2042 for Contract Area E, in 2043 for Contract Areas A, B and D. In January 2023, Eni signed an agreement with the National Oil Corporation of Libya (NOC) for the development of A&E Structures, offshore Tripoli. Production is expected to start in 2026 with gas volumes destined both to the domestic market and to Europe. The project comprises construction of an onshore Carbon Capture and Storage (CCS) hub. In November 2022 farm-out agreement with bp was ratified by relevant authority. The agreement provides for the acquisition of a 42.5% interest and operatorship by Eni in the Ghadames North, Ghadames South and Sirte offshore exploration permits. Tunisia: Exploration activities yielded positive results with the Anbar-1 exploration commitment well in the Borj El Khadra permit. Egypt In 2022, Egypt accounted for 22% of Eni’s total worldwide production of oil and natural gas, the largest contributor to the company overall production level. In 2022, the portfolio mineral interest was reloaded with the awarded of five exploration licenses as part of the Egypt International Bid Round for Petroleum Exploration and Exploitation 2021, out of which four as operator, for a total acreage of about 8,400 square kilometers. The licenses are distributed in the mining area of greatest interest to Eni, which will allow rapid developments through nearby existing plants. The operation is subjected to be ratified by the relevant authorities; the award of the operatorship of three concessions in the eastern Mediterranean Sea following the agreement with Ministry of Petroleum and the Egyptian state-owned company EGAS; a farm-in agreement in the Nargis Offshore Area with the acquisition of a 45% stake in the license; and the disposal of interests in the Ras Qattara (Eni’s interest 75%), West Abu Gharadig (Eni’s interest 45%), East Kanays (Eni’s interest 100%) and West Razzak (Eni’s interest 100%) production assets. In April 2022 Eni signed a framework agreement with the Egyptian state-owned company EGAS to enhance gas production and LNG exports through the Damietta liquefaction plant. In January 2023 Eni signed a Memorandum of Intent (MoI) with EGAS to launch joint studies on identifying opportunities for the reduction of greenhouse gas emissions in the country's upstream sector, through initiatives that will lead to further valorisation of natural gas. In addition, during the year unitization agreement was finalized for the Sand-1 field with the North El Hammad (NEHO) concession. Development activities concerned production optimization program in the Sinai concession; development drilling activities in the Baltim and NEHO concessions; the FID of the Meleiha Phase 2 project was sanctioned. The project was already started up in early production and the completion of the development program is expected in 2024; upgrading of the facilities in the Emry Deep and Arcadia fields as well as of the water injection facilities in the Western Desert. Development activities of the Zohr project in the Shoruk concession concerned: EPCI activities for the construction of new submarine facilities and two additional treatment unit with a capacity of 6,000 barrels/d to manage and recover production water. The construction of further three units with a capacity of 9,000 barrels/d is being studied; and development drilling activities with the completion of three additional production wells with start-up in 2022. The rights of Eni to produce at the Zohr Development Lease will expire in 2037. Eni holds interest in the Damietta liquefaction plant with a capacity of 5.2 mmtonnes/y of LNG associated to approximately 283 BCF/y of feed gas. In January 2023, exploration activities yielded positive results with the Nargis-1 gas discovery in the non-operated Nargis Offshore Area. The discovery will be developed by leveraging Eni’s existing facilities. Sub-Saharan Africa Eni’s operations in Sub-Saharan Africa are conducted mainly in Angola, Congo, Ghana, Mozambique and Nigeria. In 2022, Sub-Saharan Africa accounted for 17% of Eni’s total worldwide production of oil and natural gas. Angola. In August 2022, Azule Energy, the equally owned joint venture by bp and Eni, started operations by combining the partners' respective assets in the Country. In 2022 production start-up was achieved at: the Ndungu Early Production by hooking it up to the Ngoma FPSO; the Agogo Early Production Phase 2 in the Block 15/06 with the completion of the development activities and the installation of the required submarine facilities; and one well started up from Cuica field in the Eastern area of Block 15/06. In July 2022, reached the final investment decision (FID) by partners of the New Gas Consortium for the development of the Quiluma and Maboqueiro fields. The project, the first non-associated gas development in the country, is planned to start-up in 2026 with an expected production plateau at 330 mmCF/d. Development activities concerned: the definition phases of the Agogo Integrated West Hub for the full development of the western Block 15/06 area by means of the Ngoma and Agogo FPSOs; the Sanha Lean Gas Connection and Booster Gas Compressor project in Block 0 increasing associated gas production to feed the A-LNG liquefaction plant; and the FEED activity of the South Ndola e Sanha-Mafumeira connector projects for the construction of transportation facilities to put in production the residual reserves in the area. Exploration activities yielded positive results with the Ndungu-2 delineation well. Congo: In April 2022 Eni signed a letter of intent with the Republic of Congo to strength joint operations in the upstream sector targeting to increase natural gas exports. Development plans provide for an increase in natural gas production through fast-track projects to monetize the associated and non-associated volumes in the Marine XII block both for the domestic power generation and LNG exports. The export project consists of modular and phased commissioning of LNG floating production vessels with reduced time-to-market. Start-up is expected in 2023 with capacity of approximately 35 BCF/year and approximately 160 BCF/y in 2025. In December, as part of the Congo LNG project, a turn-key contract was signed to build, install and commission a Floating Liquefied Natural Gas (FLNG) vessel with a capacity of 2.4 mln tonnes/year, which will pair the Tango FLNG vessel purchased earlier to speed up Eni’s development plans. During 2022 additional development phase of the Nene-Banga field on the Marine XII block was completed with the installation of a new platform resulting production start-up. Ivory Coast: Development activities focused on the development project of the Baleine discovery in the operated offshore CI-101 (Eni’s interest 83%) and CI-802 (Eni’s interest 90%) blocks. Management believes this field to contain a large amount of hydrocarbon. During 2022 FID of both Phase 1 and 2 development projects was sanctioned. The development of Baleine Field is phased and fast-tracked with start-up of Phase 1 in 2023 and Phase 2 at the end of 2024. Exploration activities yielded positive results with the Baleine East 1x appraisal well. Following two separate transactions occurred respectively in 2013 and in 2017, Eni divested to CNPC and ExxonMobil indirect interests of 20% and 25% respectively in the discoveries of Area 4, by diluting its participating interest in Mozambique Rovuma Venture SpA, the operator of Area 4. Post transactions, Eni retains a 25% indirect interest in the Area 4 concession. The other concessionaires of Area 4 are the state-owned oil company ENH, Galp and Kogas, each with a 10% working interest. In 2017, the concessionaires of Area 4 made the final investment decision to develop the reserves of the Coral discovery, sanctioning the Coral South project. The project provided for the installation of the Coral Sul Floating Liquefied Natural Gas (FLNG) vessel for the treatment, liquefaction, storage and export, with a capacity of approximately 3.4 mmtonnes/y of LNG, feed by six subsea wells. The vessel was moored on the field in the first half of 2022 and commissioning started up. In November, the first loading of liquefied natural gas produced from the Coral gas field was shipped from the Coral Sul Floating Liquefied Natural Gas (FLNG) vessel, marking the first commercial production of Area 4. Additional development phases to put into production the Area 4 reserves, are being evaluated by the delegated operators of Area 4 (Eni and ExxonMobil), which are expected to include offshore development options, based on the expertise achieved with the Coral South FLNG project, and onshore activities also through synergies with Area 1. In December 2022, Eni was awarded a 60% interest and operatorship of the A6-C exploration block following the participation in the 6th Bid Round. The completion of the relevant oil contract is expected in early 2023. Nigeria: In August 2022 Eni finalized a twenty-year extension of the PSC agreement for the operated OML 125 block. In addition, Eni signed an agreement with the State company NNPC to recover past receivables related to the OML 125 development and production activities, starting in 2023. Development activities at the operated OMLs 60, 61, 62 and 63 blocks concerned workover and rigless activities to mitigate mature fields decline, as well as asset integrity program of the facilities and the installation of new compressor units to monetize additional natural gas volumes. During the year, additional production well was started up by means of the completion of drilling activity. Development activities of the SPDC joint venture (Eni’s interest 5%) operated production areas concerned: restore the Trans Niger Pipeline (TNP) integrity that had been compromised by external interference from third parties. The TNP is the main trunk oil line to the Bonny export terminal. The TNP line was shut down for almost 2022 to address illegal tapping resulting from bunkering activities and the operation of illegal refineries.; five new production gas wells in the Kolo Creek and Gbaran production areas have been linked, and five oil wells have been drilled in the Forcados area to increase oil production; workover and rigless programs to mitigate mature natural fields decline; and asset integrity activities. In the participated OML 118 block development activities focused on the drilling of five development wells, of which three wells were completed. Start-up was achieved with one production and one injection wells. Eni holds a 10.4% interest in the Nigeria LNG Ltd joint venture, which runs the Bonny liquefaction plant located in the Eastern Niger Delta. The plant has a production capacity of 22 mmtonnes/y of LNG associated with approximately 1,270 BCF/y of feed gas. Natural gas supplies to the plant are provided under a gas supply agreement from the SPDC JV (Eni’s interest 5%), TEPNG JV and the NAOC JV (Eni’s interest 20%). In 2022, the Bonny liquefaction plant processed approximately 830 billion cubic feet (BCF). LNG production is sold under long-term contracts and exported mainly to the United States, Asian and European markets by the Bonny Gas Transport fleet, wholly owned by Nigeria LNG, as well as is sold FOB by means of the fleet owned by third parties. Kazakhstan Eni’s operations in Kazakhstan comprised the Kashagan and the Karachaganak fields. In 2022, Kazakhstan accounted for 8% of Eni’s total worldwide production of oil and natural gas. Kashagan:Eni holds a 16.81% working interest in the North Caspian Sea Production Sharing Agreement (NCSPSA). The NCSPSA defines terms and conditions for the exploration and development of the Kashagan field, that was discovered in the Northern section of the contractual area in the year 2000 in an area extending for 4,600 square kilometers. Management believes this field to contain a large amount of hydrocarbon resources, which are expected to be developed in phases. The NCSPSA expires in 2041. In addition to Eni, the partners of the Consortium are the Kazakh national oil company, KazMunayGas, with a participating interest of 16.88%, the international oil companies TotalEnergies, Shell and ExxonMobil, each with a participating interest of 16.81%, CNPC with 8.33%, and Inpex with 7.56%. In 2022, production at the Kashagan field averaged 47 KBBL/d of liquids and 39 mmCF/d of natural gas net to Eni. Gas volumes undergo a treatment process and then are delivered to the national gas marketing and transportation company (KazTransGas); a part of the gas volumes is utilized as fuel gas. A part of the raw gas volumes (approximately 50%) is re-injected in the reservoir. The liquid production is stabilized at the Bolashak facilities and exported to Western markets through the Caspian Pipeline Consortium (Eni’s interest 2%) and the Atyrau-Samara pipeline. Ddevelopment plans envisage a phased increase in the production capacity up to 450 KBBL/d by upgrading the existing associated gas compression facilities. The ongoing activities, sanctioned in 2020, mainly concerned: increasing gas reinjection capacity by means of upgrading the existing facilities. Activities were completed during 2022; and delivering a part of gas volumes to a new onshore treatment unit operated by a third party, under construction. Karachaganak: Located onshore in West Kazakhstan, Karachaganak is a liquid and gas field. Operations are conducted by the Karachaganak Petroleum Operating consortium (KPO) and are regulated by a PSA that expires in 2037. Eni and Shell are co-operators of the venture. Eni’s interest in the Karachaganak project is 29.25%. In 2022, production of the Karachaganak field averaged 40 KBBL/d of liquids and 129 mmCF/d of natural gas net to Eni. This field is producing liquids from the deeper layers of the reservoir. The gas is delivered (about 45%) to the Russian gas plant of Orenburg; management believes this transaction does not violate the current sanction regime imposed to Russia following the military invasion of Ukraine. The remaining gas volumes are utilized for re-injection in the higher layers of the reservoir and as fuel gas. Almost the entire liquid production is stabilized at the Karachaganak Processing Complex (KPC) and exported to Western markets through the Caspian Pipeline Consortium (Eni’s interest 2%) and the Atyrau-Samara pipeline. Rest of Asia Eni’s operations in the Rest of Asia are mainly conducted in Indonesia, Iraq and the United Arab Emirates. In 2022, Eni’s operations in the Rest of Asia accounted for approximately 10% of its total worldwide production of oil and natural gas. Indonesia: Development activities concerned the Merakes East project in the operated East Sepinggan block (Eni’s interest 65%), in the deep offshore eastern Kalimantan. The project was approved with the completion of the plan program definition; the Maha project in the operated West Ganal offshore block (Eni’s interest 40%). Plan program definition is ongoing; and upgrading activities of the gas compression facilities in the operated Muara Bakau block (Eni’s interest 55%). Iraq: Development activities consisted of the execution of an additional development phase of the ERP (Enhanced Redevelopment Plan) at the Zubair field (Eni’s interest 41.56%), which will allow to achieve a production contractual plateau of 700 KBBL/d. The production capacity and main facilities to treat the production plateau target have already been installed. Activities to increase treatment capacity are ongoing. Myanmar: Eni transferred 90% participation interest and operatorship of the onshore exploration Block RSF-5 to Myanmar Petroleum Exploration & Production (MPEP). Pakistan: In December 2022 Eni finalized the divestment the entire upstream activity in the Country. Qatar: In December 2022, Eni closed the acquisition of a 3% interest in the North Field East LNG project in Qatar. United Arab Emirates: In March 2023 Eni signed a strategic agreement with ADNOC to explore potential opportunities in the areas of renewable energy, blue and green hydrogen, carbon dioxide capture and storage (CCS), in the reduction of GHG and methane gas emissions, energy efficiency, routine gas flaring reduction and the Global Methane Pledge, to support global energy security and a sustainable energy transition. Development activities concerned the Dalma Gas Development sanctioned project in the offshore Ghasha concession (Eni’s interest 25%) and the Umm Shaif Long-Term Development Phase 1 sanctioned project in the Umm Shaif concession (Eni’s interest 10%); and ramp-up production program of the Mahani field in the onshore Area B concession (Eni’s interest 50%). Exploration activities yielded positive results in the operated Block 2 (Eni’s interest 70%) with the XF-002 well and DM-002 appraisal well, in offshore Abu Dhabi. Americas Eni’s operations in Americas are conducted mainly in Mexico, United States and Venezuela. In 2022, Eni’s operations in the Americas area accounted for approximately 8% of its total worldwide production of oil and natural gas. Mexico: The development activities mainly concerned the full field development program of the operated license Area 1 (Eni’s interest 100%), already in production, with the completion of the first development phase. In particular in February 2022 start-up of the Miamte FPSO in the Miztón field with production ramp-up in the area and oil export from April 2022. During the year drilling production wells and water injection wells were completed; and in March 2022 start-up of the Amoca WHP-1 platform. Drilling activities are ongoing. The development plan includes a second phase with the construction and installation of additional two platform in the Amoca and Tecoalli fields. In March 2023 exploration activities yielded positive results with the Yatzil discovery in the Block 7 (Eni operator with a 45% interest). United States. Eni holds interests in 46 exploration and production blocks in the Gulf of Mexico, of which 15 as operator; interests in 27 operated production blocks and interest in 1 non-operated block in Alaska; and Alliance area in Texas. Venezuela: In 2022, Eni’s production of oil and natural gas averaged 53 KBOE/d and accounted for approximately 4% of Eni’s total production. Eni’s production comes mainly from the Perla gas field (Eni’s interest 50%). Other petroleum interests held by Eni in the Country comprise the Corocoro field (Eni’s interest 26%) in the Gulf de Paria and the Junín 5 oil field (Eni’s interest 40%) in the Orinoco Oil Belt. Global Gas & LNG Portfolio Global Gas & LNG Portfolio engages in the wholesale activity of supplying and selling natural gas via pipeline and LNG, and the international transport activity. It also comprises gas trading activities targeting to both hedge and stabilize the Group commercial margins and optimize the gas asset portfolio. In 2022, Eni’s worldwide sales of natural gas amounted to 60.52 billion cubic meters (BCM). Sales in Italy amounted to 30.67 BCM, while sales in European markets were 27.41 BCM that included 2.43 BCM of gas sold to certain importers to Italy. Supply of Natural Gas In 2022, Eni subsidiaries’ total supply of natural gas was 60.59 BCM, decreased by 10.39 BCM, or 14.6% from 2021. In 2022, main gas volumes from equity production derived from Eni fields located in the British and Norwegian sections of the North Sea (2.5 BCM); Italian gas fields (2.1 BCM); Indonesia (0.8 BCM); and Libyan fields (0.6 BCM). Supplied gas volumes from equity production were approximately 6 BCM representing around 10% of total volumes available for sale. Sales of Natural Gas Eni is selling gas to wholesale markets in Italy and in a number of European countries. The wholesale market includes sales to large accounts (industrials and thermoelectric utilities) and on European spot markets. In 2022, natural gas sales amounted to 60.52 BCM (including Eni’s own consumption, Eni’s share of sales made by equity-accounted entities), representing a decrease of 9.93 BCM, or 14.1% from the previous year, due to lower sales in Italy and abroad. The LNG business Eni LNG business can count on a portfolio of contracted long-term supplies mainly from: Qatar, Egypt, Nigeria and Indonesia. In the plan period, Eni intends to develop its LNG business leveraging on the integration with the E&P segment and the valorization of the equity gas. Final markets of that gas include Europe and Asia. International Transport Activities The TTPC pipeline, 740-kilometer long, is made up of two lines that are each 370-kilometers long with a transport capacity of 34.3 BCM/y and five compression stations. This pipeline transports natural gas from Algeria across Tunisia from Oued Saf Saf at the Algerian border to Cap Bon on the Mediterranean coast where it links with the TMPC pipeline. The TMPC pipeline for the import of Algerian gas is 775-kilometer long and consists of five lines that are each 155-kilometers long with a transport capacity of 33.5 BCM/y. It crosses the Sicily Channel from Cap Bon to Mazara del Vallo in Sicily, the point of entry into the Italian natural gas transport system. The GreenStream pipeline, jointly-owned with the Libyan National Oil Corporation, started operations in October 2004 for the import of Libyan gas produced at the Eni operated fields of Bahr Essalam and Wafa. It is 516-kilometers long with a transport capacity of 11.5 BCM/y crossing the Mediterranean Sea from Mellitah on the Libyan coast to Gela in Sicily, the point of entry into the Italian natural gas transport system. The Blue Stream underwater pipeline (water depth greater than 2,150 meters) links the Russian coast to the Turkish coast of the Black Sea. This pipeline is 774-kilometer long on two lines and has transport capacity of 16 BCM/y. It is part of a joint venture to sell gas produced in Russia on the Turkish market. Refining & Marketing & Chemicals Refining & Marketing Eni’s Refining & Marketing business engages in the supply and refining of crude oil to produce a large slate of fuels and other refined products and in the marketing of fuels primarily in Italy and in selected European markets. In Italy, Eni is the largest refining and marketing operator in terms of capacity and market share. The company operations are fully integrated through refining, supply, logistics and marketing in order to maximize cost efficiencies and operational effectiveness. The company also engages in the production of bio-fuels inVenice and Gela biorefineries, where sustainable bio-feedstock are processed. Supply In 2022, a total of 19.15 mmtonnes of crude were purchased (compared with 18.85 mmtonnes in 2021), of which 5.02 mmtonnes by equity crude oil. The breakdown by geographic area was the following: approximately 36% of purchased crude came from Central Asia, 18% from North Africa, 17% from the Middle East, 11% from Italy, 6% from West Africa, 5% from Russia14, 3% from North Sea and 4% from other areas. Refining In 2022, Eni refinery capacity (balanced with conversion capacity) was approximately 26.4 mmtonnes (equal to 528 KBBL/d), with a conversion index of 42%. Conversion index is a measure of refinery complexity. Eni’s 100% owned refineries have a balanced capacity of 18.4 mmtonnes (equal to 368 KBBL/d), with a 38% conversion index. In 2022, Eni’s refineries throughputs in Italy and outside Italy were 18.84 mmtonnes. The average refinery utilization rate, ratio between throughputs and refinery capacity, is 79%. Italy Eni’s refining system in Italy is composed of the wholly-owned refineries of Sannazzaro, Livorno and Taranto, as well as its 50% stake in the Milazzo refinery in Sicily. Eni’s refineries operate to maximize asset value according to market conditions and the integration with marketing activities. The Sannazzaro refinery has a balanced capacity of 180 KBBL/d and a conversion index of 40%. Located in the Po Valley, in the center of the Northern Italy, Sannazzaro is one of the most efficient refineries in Europe. The high flexibility and conversion capacity of this refinery allows it to process a wide range of feedstock. The main equipments in the refinery are: two primary distillation columns and two associated vacuum units, three desulphurization units, a fluid catalytic cracker (FCC), two hydrocrackers (HdC), two reforming units, a visbreaking conversion unit integrated with a gasification producing a syngas used in a combined cycle power generation. The Taranto refinery has a balanced capacity of 104 KBBL/d and a conversion index of 56%. Taranto has a strong market position due to the fact that is the only refinery in Southern Continental Italy, and is upstream integrated with the Val d’Agri (Eni 61%) and Tempa Rossa fields in Basilicata through a pipeline. The main equipments are a topping-vacuum unit, a residue hydrocracking and a gasoil hydrocracking unit, a platforming unit and two desulphurization units. The Livorno refinery, with a balanced refining capacity of 84 KBBL/d and a conversion index of 11%, is dedicated to the production of lubricants and specialties. The refinery is connected by pipeline to a depot in Florence (Calenzano). The refinery has a topping-vacuum unit, a platforming unit, two desulphurization units and a de-aromatization unit (DEA) – for the production of fuels; a propane de-asphalting (PDA), aromatics extraction and de-waxing units, for the production of base oils; a blending and filling plant – for the production of finished lubricants. The Milazzo refinery (Eni 50%) has a balanced capacity of 200 KBBL/d and a conversion index of 60%. Located in Sicily, Milazzo is mainly dedicated to export and to the supply of Italian coastal depots. The main equipments in the refinery are: two primary distillation columns and a vacuum unit, two desulphurization units, a fluid catalytic cracker (FCC), one hydrocracker (HdC), one reforming unit and one LC fining (ebullated bed residue conversion). Outside Italy In Germany, Eni owns an interest of 8.33% stake in the Schwedt refinery (PCK) and an interest of 20% in the Vohburg and Neustadt refineries (Bayernoil). Eni’s refining capacity in Germany is 60 KBBL/d to supply Eni’s distribution network in the country. Biorefineries Eni fully owns two biorefineries in Italy, specifically in Venice and Gela. In Venice biorefinery biofuels production started in June 2014, after the conversion of the existing oil-based refinery that was shut down at the same time. The biorefinery has processing capacity of 0.4 mmtonnes/y, leveraging on the Ecofining proprietary technology to transform biofeedstock (both vegetable oil and waste and residues) in hydrogenated bio-fuels. Gela refinery is located in the Southern coast of Sicily. In March 2014 the traditional refinery was shut-down and in 2017 the conversion project obtained the official authorization to proceed with the transformation into a biorefinery (the environmental impact assessment and authorization (VIA/AIA) issued by the Italian Ministry of the Environment and the Ministry of Cultural Heritage. In August 2019, Eni started-up the biorefinery equipped with the Ecofining technology, developed and licensed by Eni, to produce HVO from vegetable oil and waste and residues feedstocks, such as used cooking oil and animal fat. The plant properties together with a strong supply strategy allow the production of HVO in compliance with the last regulatory constraints in terms of GHG emissions reduction, considering the whole life cycle of the product. In March 2021, the Biomass Treatment Unit (BTU) has been started up to expand the range of feedstocks to be processed by the plant, allowing the replacement of palm oil with more sustainable raw materials. In October 2022, Eni completed the phase-out of palm oil as feedstock supply in both biorefineries, with it fully replaced by sustainable raw materials. In 2022, Eni’s refining throughputs on own account in Europe were 18.84 mmtonnes, substantially in line with 2021. Logistics Eni is a leading operator in the Italian oil and refined products storage and transportation business. Oil and refined products are transported by sea through spot and long-term contracts of tanker ships; and inland through a proprietary pipeline and depots network directly operated. In particular, Eni owns and operates an integrated infrastructure consisting of 15 directly managed depots and one managed through the subsidiary Petroven, 100% owned since December 2019. Eni also owns a network of oil and refined products pipelines extending approximately 1.156 kilometers operating. Eni logistic model is organized in four operative management (Northern depots, Central depots, Southern depots and LPG and Pipeline) operating in handling and storage of the product flows in order to guarantee high safety, asset integrity and technical standards (HSE e asset integrity), as well as cost optimization and constant products availability along the country. Eni is also part of 7 different logistic joint ventures (Sigemi, Seram, Disma, Seapad, Toscopetrol, Porto Petroli Genova and Costiero Gas Livorno), together with other Italian operators, that operate other localized depots and pipelines. Marketing Eni markets a wide range of refined petroleum products, primarily in Italy, through a widespread operated network of service stations, franchises and other distribution systems. In 2022, retail sales of refined products (27.79 mmtonnes) were down by 0.18 mmtonnes or by 0.6% from 2021, as result of lower sales in Italy, partly balanced by higher volumes marketed abroad. Retail Sales in Italy In 2022, retail sales in Italy were 5.38 mmtonnes, with an increase compared to 2021 (0.26 mmtonnes from 2021 or up by 5.1%) due to higher volumes of gasoline and gasoil. Retail Sales in the Rest of Europe Retail sales in the Rest of Europe were 2.12 mmtonnes, substantially in line with 2021 as a result of higher volumes sold in Germany, France, Spain and Austria partly balanced by the decrease of the volumes in Switzerland. As of December 31, 2022, Eni’s retail network in the Rest of Europe consisted of 1.240 units, increasing by 4 unit from December 31, 2021, mainly thanks to the openings in Germany and Austria balanced by the reduction in Switzerland and France. Other Businesses Wholesale Eni is strongly present in wholesale market in Italy, including sales of diesel fuel for automotive use and for heating purposes, for agricultural vehicles and for vessels and sales of fuel oil. Major customers are resellers, agricultural users, manufacturing industries, public utilities and transports, as well as final users (transporters, condominiums, farmers, fishers, etc.). Eni provides its customers with its expertise in the area of fuels with a wide range of products that cover all market requirements. Customer care and product distribution are supported by a widespread commercial and logistical organization presence throughout Italy and is articulated in local marketing offices and a network of agents and concessionaires. LPG The marketing of LPG (Liquefied Petroleum Gas) in Italy is supported by the refining production and a logistic network made up of two bottling plants, one owned storage site and coastal storage sites located in Livorno, Naples and Ravenna. Lubricants Eni operates five (owned and co-owned) blending and filling plants, in Italy, Spain, Germany, Africa and in the Far East. With a wide range of products composed of over 650 different blends Eni masters international state of the art know how for the formulation of products for vehicles (engine oil, special fluids and transmission oils) and industries (lubricants for hydraulic systems, grease, industrial machinery and metal processing). In Italy, Eni is leader in the manufacture and sale of lubricant bases, manufactured at Eni’s refinery in Livorno. Eni also owns one facility for the production of additives in Robassomero. Oxygenates Eni’s, through its subsidiary Ecofuel (100% Eni’s share), sells approximately 1.08 mmtonnes/y of oxygenates, mainly ethers (approximately 3% of world demand, used as a gasoline octane booster) and methanol (mainly for petrochemical use). About 81% of oxygenates are produced in Eni’s plants in Italy (Ravenna), Saudi Arabia (in joint venture with Sabic) and Venezuela (in joint venture with Pequiven) and the remaining 19% is purchased. Chemicals Eni operates in the businesses of olefins and aromatics, basic and intermediate products, polystyrene, elastomers and polyethylene. Its major production hubs are located in Italy and Western Europe. Eni is also engaged in the development of chemicals from renewable sources and recycled materials. In 2022 sales of chemical products amounted to 3,676 ktonnes, decreased from 2021 (down by 775 ktonnes, or 17.4%), in particular, the main reductions were recorded in olefins (down by 22.8%), elastomers (down by 18.7%), polyethylene (down by 16.4%) and styrenic (down by 12.1%). In the moulding & compounding business, sales amounted to 76 ktons. Strategy The company is executing a strategy designed to adapt its business model to and to grow in a low-carbon economy. Significant Events In March 2023, Eni signed a strategic agreement with ADNOC to explore potential opportunities in the areas of renewable energy, blue and green hydrogen, carbon dioxide capture and storage (CCS), in the reduction of GHG and methane gas emissions, energy efficiency, routine gas flaring reduction and the Global Methane Pledge, to support global energy security and a sustainable energy transition. In January 2023, Eni and and Sonatrach have signed strategic agreements to accelerate emissions reduction and strengthen energy security. Through these agreements will identify opportunities for the reduction of GHG and methane gas emissions and will define energy efficiency initiatives, renewable energy developments, green hydrogen projects and carbon dioxide capture and storage projects, to support energy security and a sustainable energy transition. In addition, studies will conduct to identify possible measures to improve Algeria's energy export capacity to Europe. In December 2022, Eni signed a contract with Wison Heavy Industry for the construction and installation of a Floating Liquefied Natural Gas (FLNG) unit with a capacity of 2.4 mmtonnes/y in order to increase LNG production and export from the Republic of Congo. The vessel will be anchored at a water-depth of around 40 metres and will be able to store over 180 kcm of LNG and 45 kcm of LPG. This facility represents the second FLNG deployed in the Republic of Congo (the first was Tango FLNG). In December 2022, Eni signed an agreement with DHL Express Italy and SEA Group, which manages Milan Malpensa and Milan Linate airports, to test Eni Biojet, a Sustainable Aviation Fuel (SAF) 20% blended with JetA1 and produced exclusively from waste raw materials, animal fat and used vegetable oils. By the end of 2022, 28 flights departing from Malpensa will be powered also by SAF produced by Eni at Livorno refinery in partnership with Eni's bio-refinery in Gela. In December 2022, Eni signed an agreement with Snam to jointly develop and manage Phase 1 of the Ravenna Carbon Capture and Storage (CCS) Project, through an equal joint venture. The agreement also includes the implementation of studies and preparatory activities for the subsequent development phases. Phase 1 of the Ravenna CCS Project covers the capture of 25 ktons of CO2 emitted from Eni's natural gas treatment plant in Casalborsetti (Ravenna). In December 2022 - Versalis acquired from DSM, a global company focused on Health, Nutrition & Bioscience, the technology to produce enzymes for second-generation ethanol. This strategic agreement integrates the proprietary Proesa technology, applied at the Crescentino plant for the production of sustainable bioethanol and chemical products from lignocellulosic biomass, improving the competitiveness of technology and production. In November 2022, Eni signed a collaboration agreement with Bonifiche Ferraresi to evaluate the development of crops for energy use in Italy, recovering degraded, abandoned or polluted land, not in competition with the food chain. In November 2022, Eni signed four agreements with the Government of Rwanda to develop innovative joint initiatives in agriculture, protection of unique forest ecosystems, technology and health. The initiatives are part of Eni's just transition strategy to support the decarbonisation of African countries. In November 2022, Eni signed a protocol with Inail on research, innovation and safety in the workplace. The five-year agreement, in line with the expiry of the PNRR (Piano Nazionale di Ripresa e Resilienza) in 2026, will involve joint initiatives to test high-tech value solutions and to spread prevention culture across the energy supply chain, involving trade unions in the process. In November 2022, Eni UK announced the launch of the Bacton Thames Net Zero (BTNZ) Cooperation Agreement with the shared aim of decarbonising industrial processes in the South-East of England and the Thames Estuary area, near London, by means of capturing and storing carbon dioxide. The initiative will decarbonise a number of sectors including power generation and waste disposal. In November 2022, Eni signed an agreement with Autostrade per l'Italia and CDP to develop joint initiatives for the energy transition. The agreement on sustainable mobility has the specific target of decarbonizing Italy’s motorway network. It includes the development of new energy carriers for both lorries and cars, starting with biofuel from sustainable raw materials and not in competition with the food chain, hydrogen, biomethane and charging points for electric cars. The agreement also includes the development of renewable energy plants by installing photovoltaic farms in areas owned by Autostrade per l'Italia or near the motorway network. In November 2022, Eni established a collaboration with PASQAL, leader in neutral atoms quantum computing, to develop next-generation HPC (high performance computing) solutions for the energy sector through quantum computing. Quantum technology allows to solve problems too complex for classical computer and its application to the energy sector could further accelerate the energy transition. In November 2022, Eni and Leonardo signed an agreement for the development of joint sustainability and innovation initiatives, with the aim of boosting the energy transition and decarbonising their operations. The collaboration will be developed within a circular economy framework to promote and accelerate the energy transition and decarbonisation of the aerospace sector, the production and use of energy from renewable sources, the energy efficiency of buildings and production plants, the recycling of materials and the re-use of waste. In September 2022, Eni launched an important cooperation project with Automobile Club d’Italia (ACI), an institutional reference point for motorists and the Italian Motor Sports Federation in order to speed up the widespread use of products, services and solutions for sustainable mobility and the energy transition. ACI’s widespread presence on the Italian territory will be combined with technologies and businesses from all Eni companies. In August 2022, Eni acquired the Tango FLNG floating liquefaction vessel, which will be deployed at the natural gas development project in the Marine XII block, Republic of Congo, in line with Eni's strategy to leverage gas equity resources. The vessel has production capacity of approximately 0.6 million tons/year of LNG (about 1 billion standard cubic meters/year). In June 2022, Eni strengthened the collaboration with the United Nations Industrial Development Organization (UNIDO) to pursue joint initiatives in the fields of green hydrogen, renewables, energy efficiency, technical education, youth employment and the agricultural value chain, particularly in Africa, as part of Eni’s commitment to develop the UN’s SDG. In May 2022, Eni signed an agreement with Ansaldo Energia to evaluate technologies for storing electricity, as an alternative to electrochemical batteries. Those technologies will be implemented in synergy at Eni’s industrial hubs in Italy, leveraging existing power generation and consumption systems. In May 2022, Eni and XEV signed a cooperation agreement to explore areas of collaboration concerning research and development into sustainable mobility systems to reduce the environmental impact of vehicles, the development of battery swapping technology and the assembly of the car manufacturer's vehicles. In April 2022, Eni signed an agreement with the Egyptian state-owned company EGAS to valorize local gas reserves by increasing activities in jointly operated concessions and by exploring near field areas, with the goal of boosting production and gas exports to Italy via the Damietta liquefaction plant to a level of approximately 3 billion cubic meters in the coming years. In April 2022, signed an agreement with Sonatrach to gradually increase the volumes of gas exported to Italy through the Transmed pipeline as part of the existing long-term supply contracts, with additional gas deliveries rising to up to 9 billion cubic meters per year in 2024. Additional gas reserves will be jointly developed by Eni and Sonatrach leveraging Eni’s distinctive fast track model, to support export flows to Italy. In April 2022, Eni signed an agreement with the Chinese Shandong Eco Chemical Co. Ltd. to license Versalis proprietary continuous mass technology to manufacture styrenic polymers with a low-carbon footprint. Seasonality Eni’s results of operations reflect the seasonality in demand for natural gas and certain refined products used in residential space heating, the demand for which is typically highest in the first quarter of the year, which includes the coldest months and lowest in the third quarter, which includes the warmest months. Moreover, year- to-year comparability of results of operations is affected by weather conditions affecting demand for gas and other refined products in residential space heating. In colder years, which are characterized by lower temperatures than historical average temperatures, demand for gas and products is typically higher than normal consumption patterns, and vice versa. Research and Development In 2022, the company’s overall expenditure in research and development amounted to €164 million. Patents In 2022, Eni filed 23 patent applications (30 in 2021). History Eni S.p.A. was founded in 1953.