2004 Business Update and Field Trip to Egypt & Libya. October 26 th, 2004

Transcription

1 2004 Business Update and Field Trip to Egypt & Libya October 26 th, 2004

2 Disclaimer This presentation contains forward-looking statements regarding future events and the future results of Eni that are based on current expectations, estimates, forecasts, and projections about the industries in which Eni operates and the beliefs and assumptions of the management of Eni. In particular, among other statements, certain statements with regard to management objectives, trends in results of operations, margins, costs, return on equity, risk management and competition are forward-looking in nature. Words such as expects, anticipates, targets, goals, projects, intends, plans, believes, seeks, estimates, variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, Eni s actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, economic conditions globally, the impact of competition, political and economic developments in the countries in which Eni operates, regulatory developments in Italy and internationally and changes in oil prices and in the margins for Eni products. Any forward-looking statements made by or on behalf of Eni speak only as of the date they are made. Eni does not undertake to update forward-looking statements to reflect any changes in Eni s expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based. The reader should, however, consult any further disclosures Eni may make in documents it files with the US Securities and Exchange Commission. 2

3 2004 Business Update and Field Trip to Egypt & Libya Vittorio Mincato CEO October 26 th, 2004

4 Delivering on Strategy «... among the strategic guidelines there were:! strong hydrocarbon production growth! recovery of volumes and margins through the developments in gas sales abroad, powergen in Italy and cost cutting...» Western Libya gas project WAFA NC41 LNG Reganosa MELLITAH L I B Y A LNG Sagunto GELA Damietta LNG Plant Damietta «... gas projects perfectly combining the two strategic guidelines» Egypt 4

5 Strong Focus on Integration Upstream Downstream gas! Reserves availability! Production growth! Exploration strength! Marketing skills! Access to markets! Well established infrastructures Monetize equity gas Access to valuable markets Integrated projects to capture full value of the gas chain 5

6 Valuable Equity Gas Reserves % 25% 30% Proved reserves: 7.3 Billion boe* % 12% 200 Oil and condensate 57% 0 West Africa North Sea Italy Row North Africa! Diversified portfolio! Available gas reserves close to markets! Potential for additional gas reserves Gas reserves 43% * At December

7 E&P: strong organic growth Kboe/d CAGR +5%* 1,900 1,562 Gas overseas CAGR ~ 9% Gas overseas Liquids and domestic gas * Net of portfolio rationalization - Reference conditions Brent ($/bl): 24 (04), 22 (05), 21 (06-07) 7

8 E&P: 2004 production growth sustained by new start-ups Kboe/d Net of PSA + 6% 1,537 1,629 4% 31 1,598! 2004 project start-ups on track! 4Q expected production: > 1.7 Million boe (net of PSA impact) 2004 production in line with target +5% Jan-Sep 03 Jan-Sep 04E

9 Dynamic Demand and evolving Competitive Scenario in Europe European gas demand** (Bcm)* +3.0% Other Powergen * Eni estimates on Wood MacKenzie data Driver: Growth in electricity demand and start-up of new CCGT European market scenario! On going market deregulation! Gas Supply Declining European domestic production Growing role of producing countries! New Projects related to gas infrastructures * * Europe includes EU 15, Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Czech R., Estonia, Hungary, Lettonia, Lithuania R., Macedonia, Norway, Poland, Romania, Serbia, Slovak R., Slovenia, Switzerland and Turkey 9

10 Eni Well Positioned to match European Gas Growing Demand Bcm Sales Abroad Italy E DEMAND GROWTH * CAGR % Volume CAGR % Volume! Iberia! Turkey! Hungary! Italy ! France! UK! Germany (*) Eni estimates on WoodMackenzie data 10

11 G&P: 2004 European gas sales in line with strategic target Bcm +3.6% ITALY Eni sales (including self consumption) Jan-Sep % Jan-Sep 04E Overall Overallnatural naturalgas gas sales* sales* growth growth 9M04E/9M03: 9M04E/9M03: ~10% ABROAD* Associates Consolidated Jan-Sep Jan-Sep 04E * Excluding gas sales in South America for: 1.4 in 9M 03-04; 0.6 in 3Q 03; 0.5 in 3Q 04 11

12 Eni Widespread and Balanced Infrastructures to access Markets in Europe NETWORK SYSTEMS Eni PARTICIPATION LNG Existing Ongoing Pipeline REGANOSA NORTH SEA SYSTEM INTERCONNECTOR TENP TRANSITGAS TAG NEXT STEPS! LNG: potential future developments! Increase capacity of existing transportation system PANIGAGLIA SINES SAGUNTO TMPC SRG BLUE STREAM BONNY TTPC GREEN STREAM NIGERIA DAMIETTA 12

13 Growth and Returns maximized by Integrated Projects Western Libya gas project STRATEGIC RATIONALE STRATEGIC TARGETS GELA WAFA NC41 LNG Reganosa MELLITAH L I B Y A Damietta LNG and UF Gas project LNG Sagunto Damietta! Monetize equity gas matching growing market demand! Increase supply flexibility! Capture full value along the gas chain! Strong contribution to short and long term production growth! Increase gas sales abroad! Attractive returns Egypt 13

14 Growth and Returns maximized by Integrated Projects! Projects on schedule and within budget! Management and engineering skills in complex projects! Local content maximized! Long term and solid relationship with local communities LNG Reganosa LNG Sagunto GREEN STREAM Western Libya gas project Damietta and UF Gas Damietta Outstanding delivery on large integrated projects Egypt 14