|Employees injury frequency rate
||(No. of accidents per million hours worked)
|Contractors injury frequency rate
||(No. of fatalities per 100 million hours worked)
|Net sales from operations(a)
|Adjusted operating profit
|Adjusted net profit
|Adjusted capital employed, net at year end
|Profit per boe(b)
|Opex per boe(b)
|Cash Flow per boe
|Finding & Development cost(c)
|Average hydrocarbons realizations(d)
|Production of hydrocarbons(d)
|Estimated net proved reserves of hydrocarbons(d)
|Reserves life index(d)
|All sources reserves replacement ratio(d)
|Employees at year end
|of which: outside Italy
|Oil spills from sabotage and terrorism
|Produced water re-injected
|Direct GHG emissions
|of which: from flaring
- In 2011, employee and contractor injury frequency rate declined by 43.1% and 14.6% from 2010, respectively.
- Greenhouse gas emissions (total and from flared) reported a steep decline reflecting the completion of certain gas recovery projects in Nigeria and the reduction associated gas to feed the ramp-up of two turbo-generators in a power plant in Congo. Performance for the year was also impacted by lowered Libyan activities.
- In 2011, the E&P Division reported an excellent performance amounting to €6,866 million of adjusted net profit (up 22.6% from 2010), reflecting higher oil prices and the rapid recovery of Libyan output.
- Return on average capital employed calculated on an adjusted basis was 17.2% in 2011 (16% in 2010).
Giant discovery in Mozambique
The volume of natural gas discovered beyond expectation in Mozambique will lead to a new significant development opportunities in Far East Countries with an energy demand growth at fast pace. The Mamba South, Mamba North and Mamba North East exploration wells were drilled in Area 4 of the offshore Rovuma basin showing the mineral potential of gas in place up to 40 tcf. This is the largest operated discovery in the Company’s exploration history.
Agreement with Rosneft
On April 25, 2012, Eni and Rosneft signed a strategic cooperation agreement to jointly develop exploration licenses in the Russian offshore of the Barents Sea and the Black Sea. Under the agreement, joint ventures (Eni 33.33%) will explore for and develop the Fedynsky and Tsentralno-Barentsvesky licenses offshore the Barents Sea and the Zapadno-Cernomorsky license offshore the Black Sea. These licenses are estimated to hold recoverable resources of 36 billion boe. Technology exchange is a key element of the strategic partnership.
Restarted Libyan operations
The rapid restart of Eni’s Libyan operations reduced the impact of the Revolution on 2011 results. Production at Eni’s Libyan sites is currently flowing at approximately 240 kboe/d and management is targeting to achieve the pre-crisis production plateau of 280 kboe/d and full ramp-up by the second half of 2012.
Start-up of Perla project in Venezuela
Signed a Gas Sales Agreement for developing the giant Perla gas discovery, containing over 17 tcf of gas in place with the Venezuelan national oil company PDVSA. The development plan provides for three phases, targeting production of approximately 9 tcf until 2036 or 1.2 mmcf/d at peak. The gas produced will be used locally and exported. The investment plan for the first development phase is estimated at $1.4 billion at 100%.
In spite of the year 2011 was marked by the Libyan crisis, the management continued to pursue our long-term growth strategy. Leveraging its established co-operation model, focusing on core areas and capturing opportunities in high risk/high reward basins, Eni laid foundations for a new development stage:
- Signed with PetroChina and Sinopec a framework agreement to promote joint projects in conventional and unconventional hydrocarbon plays in China and outside China. A similar agreement has been signed with Sonatrach to explore for and develop unconventional hydrocarbons in Algeria, particularly shale gas plays.
- Signed a Memorandum of Understanding with South Africa’s Stateowned oil company PetroSA to promote common opportunities to jointly expand operations in conventional and unconventional hydrocarbons in South Africa and in Africa. Eni will also ensure long-term LNG supplies as well as flows of refined products to support the Country’s economic development.
- Acquired from Cadogan Petroleum plc an interest in two licenses for exploration and development in areas included in the Dniepr-Donetz basin in Ukraine.
- Reached an agreement with MEO Australia to farm-in the Heron and Blackwood gas discoveries in the NT/P-68 permit, located in the Timor Sea. In addition, Eni acquired a 32.5% stake in the Evans Shoal gas discovery.
- Awarded the Arguni I and the North Ganal operated gas exploration contracts located onshore and offshore Indonesia, respectively.
- Awarded the operatorship of the PL657 license (Eni’s interest 80%) located in the Barents Sea nearby the Goliat operated field (Eni’s interest 65%).
- Signed with the Angolan authority the Production Sharing Contract to explore Block 35 (Eni operator with a 30% interest) located in an offshore high mineral potential basin.
New agreement of Karachaganak field in Kazakhstan
On December 14, 2011, the Republic of Kazakhstan and the contracting companies in the Final Production Sharing Agreement (FPSA) of the giant Karachaganak gas-condensate field reached an agreement to settle all pending claims. The agreement, effective from June 30, 2012 on satisfaction of conditions precedent, involves Kazakhstan’s KazMunaiGas (KMG) acquiring a 10% interest in the project. This will be done by each of the contracting companies transferring 10% of their rights and interest in the Karachaganak FPSA to KMG.
In 2011, Eni reported liquids and gas production of 1,581 kboe/d, down by 12.9% from 2010, mainly due to a lowered output in Libya. Performance was also negatively impacted by lower entitlements in the Company’s Production Sharing Agreements (PSAs) due to higher oil prices with an overall effect of approximately 30 kboe/d from 2010. Net of this effect and the above mentioned loss of Libyan output, production for the year was in line with 2010.
- In the year oil spills from accidents declined by 23% from 2010, due to significant prevention activities undertaken.
- In the year start-ups were achieved at eleven oil and gas fields which are expected to add approximately 80 kboe/d at plateau to Eni’s medium-term production.
- Made final investment decisions to develop large projects such as the jointly-operated Samburgskoye and Urengoskoye giant gas fields in Siberia, in addition to the above mentioned Perla project, as well as projects in Norway and the Gulf of Mexico which are expected to add 140 kboe/d at plateau in 2015.
Estimated net proved reserves at December 31, 2011, were 7.09 bboe (up 3.6% from 2010) based on a 12-month average Brent price of $111 per barrel. All sources reserves replacement ratio was 142%. Excluding price effect, the replacement ratio would be 159%. The reserves life index is 12.3 years (10.3 years in 2010).
In 2011, capital expenditure amounted to €9,435 million to enhance assets in well established areas of Africa, the Gulf of Mexico and Central Asia. Exploration expenditure amounted to €1,210 million (up 19.6% from 2010) to execute a selective campaign with the completion of 56 new exploratory wells (28 net to Eni) and an overall commercial success rate of 42% (38.6% net to Eni). In addition 17 exploratory wells drilled are in progress at year end (9.9 net to Eni).
- Exploration successes in the year contributed to increase our resource base by 1.1 bboe. New resources were, in addition to the above mentioned Mozambique discovery, the appraisal of Perla giant field in Venezuela, significant discoveries of Jangkrik North East (Eni operator with a 55% interest) in Indonesia and Skrugard/ Havis (Eni’s interest 30%) in the Barents Sea, the appraisal/ discovery wells in Block 15/06 (Eni operator with a 35% interest) in the Angolan offshore, as well as other successes in the Gulf of Mexico, Ghana, Egypt, Pakistan, the United Kingdom and Nigeria.
- Development expenditure was €7,357 million to fuel the growth of major projects in Norway, Kazakhstan, Algeria, the United States, Italy, Congo and Egypt.
- In 2011 overall R&D expenditure of Exploration & Production Division amounted to approximately €90 million (€98 million in 2010).