31 Other non-current liabilities

Derivative fair values were estimated on the basis of market prices provided by primary info-provider, or alternatively, appropriate valuation techniques commonly used in the marketplace.

The fair value of non-hedging derivative contracts and is presented below:

Fair value of non-hedging derivatives of €282 million (€271 million at December 31, 2012) consisted of: (i) €155 million (€198 million at December 31, 2012) of derivatives that lacked the formal criteria to be designated as hedges under IFRS because they were entered into in order to manage net business exposures to foreign currency exchange rates, interest rates or commodity prices. Therefore, such derivatives were not related to specific trade or financing transactions; (ii) €127 million (€60 million at December 31, 2012) related to the call option embedded in the bonds convertible into Snam SpA and Galp Energia SGPS SA ordinary shares for €81 million and €46 million (further information is disclosed in Note 27 – Long-term debt and current portion of long-term debt); and (iii) €13 million as of 31 December 2012 of derivatives embedded in the pricing formulas of certain long-term supply contracts of gas in the Exploration & Production segment.

Fair value of cash flow hedge derivatives amounted to €1 million (€13 million at December 31, 2012) and pertained to hedges entered by the Gas & Power segment. Those derivatives were designated to hedge exchange rate and commodity risk exposures as described in Note 14 – Other current assets. Fair value of contracts expiring beyond 2014 is disclosed in Note 21 – Other non-current receivables; fair value of contracts expiring by 2014 is disclosed in Note 26 – Other current liabilities and in Note 14 – Other current assets. The effects of fair value evaluation of cash flow hedge derivatives are disclosed in Note 33 – Shareholders’ equity and in Note 37 – Operating expenses.

The nominal value of these derivatives referred to purchase and sale commitments for €1 million and €24 million, respectively (€24 million and €223 million at December 31, 2012, respectively).

Information on the hedged risks and the hedging policies is shown in Note 35 – Guarantees, commitments and risks – Risk factors.

Other liabilities of €1,345 million (€1,635 million at December 31, 2012) included advances received from Suez following a long-term agreement for supplying natural gas and electricity of €876 million (€968 million at December 31, 2012) and advances relating to amounts of gas of €149 million (€380 million at December 31, 2012) which were collected for amounts lower than the minimum take for the year by certain of Eni’s clients, reflecting take-or-pay clauses contained in the long-term sale contracts. Management believes that the underlying gas volumes will be collected beyond the twelve-month time horizon.

Transactions with related parties are described in Note 43 – Transactions with related parties.