Exploration & Production

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Key performance indicators

2011

2012

2013

(a)	Before elimination of intragroup sales.
(b)	Consolidated subsidiaries.
(c)	Three-year average.
(d)	Includes Eni’s share of equity-accounted entities.

Employees injury frequency rate

(No. of accidents per million of worked hours)

0.41

0.28

0.14

Contractors injury frequency rate

0.41

0.36

0.26

Fatality index

(No. of fatalities per 100 million of worked hours)

1.83

0.81

Net sales from operations ^(a)

(€ million)

29,121

35,881

31,268

Operating profit

15,887

18,470

14,871

Adjusted operating profit

16,075

18,537

14,646

Adjusted net profit

6,865

7,426

5,952

Capital expenditure

9,435

10,307

10,475

Adjusted ROACE

(%)

17.2

17.6

13.5

Profit per boe ^(b)

($/boe)

17.0

16.0

15.5

Opex per boe ^(b)

7.3

7.1

8.3

Cash flow per boe ^(d)

31.7

32.8

31.9

Finding & Development cost per boe ^(c) (d)

18.8

17.4

19.2

Average hydrocarbons realizations ^(d)

72.26

73.39

71.87

Production of hydrocarbons ^(d)

(kboe/d)

1,581

1,701

1,619

Estimated net proved reserves of hydrocarbons ^(d)

(mmboe)

7,086

7,166

6,535

Reserves life index ^(d)

(years)

12.3

11.5

11.1

Organic reserves replacement ratio ^(d)

(%)

143

147

105

Employees at year end

(number)

10,425

11,304

12,352

of which: outside Italy

6,628

7,371

8,219

Oil spills due to operations (>1 bbl)

(bbl)

2,930

3,015

1,728

Oil spills from sabotage (>1 bbl)

7,657

8,436

5,493

Produced water re-injected

(%)

Direct GHG emissions

(mmtonnes CO₂eq)

23.59

28.46

25.71

of which: from flaring

9.55

9.46

8.48

Community investment

(€ million)

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Performance of the year

In 2013, employees and contractors injury frequency rate continued with a positive trend (down by 48.7% and by 28.8% from 2012, respectively), with a zero fatality index. Eni is engaged in maintaining a high safety standard in each of its operations, in particular the “eni in safety” program in the E&P Division involved more than 1,600 people in Italy and outside Italy.
Direct greenhouse gas emissions decreased by 9.7% compared to the previous year (down by 10.4% from flaring) due to, in particular, flaring down projects in Nigeria and higher supply to the power plants in Congo (in particular to the CEC power plant, Eni’s interest 20%).
Oil spills reported a decline from 2012 (down by 42.7% from operations; down by 34.9% from sabotage) and zero blow-outs for the tenth consecutive year.
Achieved a record result of 55% in re-injection of the produced water. In particular, a water re-injection program is planned in the Nigerian onshore for the next years.
In 2013 the E&P Division reported a decline of €1,474 million or 20% from 2012 in adjusted net profit due to extraordinary disruptions in particular in Libya, Nigeria and Algeria. Cash generation was strong with $30 per barrel due to our low cost position.
In 2013, oil and natural gas production of 1,619 kboe/day declined by 4.8% from 2012 mainly due to geopolitical factors. The contribution of the start-ups/ramp-ups was partly offset by the effects of planned facility downtimes and technical problems, as well as mature field declines.
Estimated net proved reserves at December 31, 2013 amounted to 6.54 bboe based on a reference Brent price of $108 per barrel.
The organic reserves replacement ratio was 105% with a reserves life index of 11.1 years (11.5 years in 2012).

Portfolio optimization

Exploration activity

In 2013 exploration activity reported a successful performance, with approximately 1.8 bboe of discovered resources at an average competitive cost of $1.2 per barrel:
Exploration campaign of the year in Mozambique, in the offshore of the Rovuma basin in the Area 4 (Eni operator with a 50% interest), regarded the appraisal of the Mamba and Coral discoveries and a new prospect in the Southern section of Area 4, with Agulha discovery. Management estimates that Area 4 may contain up to 2,650 billion cubic meters of gas in place.
Recent appraisal of the Sankofa East discovery in the Offshore Cape Three Points license (Eni operator with a 47.22% interest), in Ghana, confirming high oil potential of the western part of the area. The total potential of the Sankofa East oil discovery is estimated at approximately 450 million barrels of oil in place with recoverable reserves up to 150 million barrels.
Oil Skavl discovery (Eni’s interest 30%) in the Barents Sea in Norway confirmed an extraordinarily high potential of the area, in addition to the recent oil and gas Skrugard and Havis discoveries. The total recoverable resources are estimated at over 500 million barrels at 100% and are planned to be put in production by means of fast-track synergic development.
Recent discoveries and appraisal activities in the Marine XII Block (Eni operator with 65%) in Congo achieved the mineral potential of the area to 2.5 billion boe in place.
Further exploration successes of the year were reported in Australia, Angola, Egypt, Norway and Pakistan where existing facilities ensure to reduce time-to-market and costs.
Achieved a strategic cooperation agreement with Rosnfet for exploration activities in the Russian offshore (Fedynsky and Central Barents licenses) where seismic surveys started, and in the Black Sea (Western Chernomorsky license).
Signed an agreement with Quicksilver for joint exploration and development of unconventional oil reservoirs (shale oil), located in onshore of the United States. In particular, Eni will participate with a 50% interest.
In 2013 exploration expenditure amounted to €1,669 million. In the year 53 new exploratory wells (27.8 net to Eni) were completed with an overall commercial success rate of 36.9% (38.5% net to Eni). In addition 129 exploratory wells drilled are in progress at year end (55 net to Eni).

Annual Report 2013

Exploration & Production

Performance of the year

Portfolio optimization

Exploration activity

Sustainability and portfolio developments