Eni

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ENI S.p.A.
Type Joint-stock company (NYSEE)
Industry Petroleum industry
When it was created 10 February 1953
Headquarters Rome, Italy
Area served Worldwide
Key people Giuseppe Recchi (Chairman), Paolo Scaroni (CEO)
Things made Oil and natural gas exploration, production, refining and marketing, electricity generation, oil and gas engineering and construction
Money earned €84.35 billion (2009)[1]
Operating income €12.06 billion (2009)[1]
Profit €4.367 billion (2009)[1]
Employees 78,420 (2009)[1]
Subsidiaries AGI, Distrigas, Italgas, Polimeri Europa, Saipem (43%), Snam Rete Gas (50%), Syndial
Website www.eni.it

Eni S.p.A. NYSEE) is an Italian multinational oil and gas company. Eni is present in 70 countries, and currently is Italy's largest industrial company. It has a market capitalization of € 87.7 billion euros (US$138 billion), as of July 24, 2008.[2] The Italian Government owns a 30% golden share in the company. Golden shares are special stock shares that allow the government to control a company. 20% of the shares are held through the state Treasury and 10% are held through the Cassa depositi e prestiti (a bank mostly owned by the Ministry of Economy and Finance of Italy).

History[change | edit source]

Agip was started in 1926. After World War II, Enrico Mattei was appointed Special Administrator to close down Agip. With the discovery of the Caviaga gas field in the Po Valley, the process of closing Agip was halted. Enrico Mattei converted it to a state monopoly (a company with no competition), and renamed it Eni. Eni comes from the company's original full name Ente Nazionale Idrocarburi (National Hydrocarbons Agency). Eni was to supply energy to Italy and contribute to the country's industrial development.

Eni decided that natural gas would supply the energy needed from the crisis of the 1973 oil embargo. They import gas from the Soviet Union and the Netherlands. Snam started the Transmediterranean pipeline, moving gas from the Hassi-R-Mel field in Algeria to the Po Valley. The gas pipeline was more than 2,500 km or 1550 miles long. It started in the Algerian desert and crosses Tunisia. It then crosses the Sicilian Channel at a water depth of over 650 metres or 2100 feet. Next it goes through Sicily and up the length of the entire Italian peninsula.

In the 1990s, Eni changed from a public corporation into a joint stock company. Most of Eni's share capital was put on the market in four successive public issues. Agip's international work increased with new acquisitions in Algeria, China, Angola, the North Sea and Egypt. New agreements were signed with Kazakhstan, Azerbaijan and for the Nigerian and Angolan deep water oil. Eni incorporated Agip, and became an oil and gas producer. Eni's daily oil and gas production reached the equivalent of 1 million barrels of oil.

Current operations[change | edit source]

Exploration and production[change | edit source]

Eni operates in the exploration (searching) and production of hydrocarbons (oil and natural gas) in Italy, North Africa, West Africa, the North Sea, the Gulf of Mexico and Australia. It also operates in areas with great potential to produce oil such as the Caspian Sea, the Middle and Far East, India and Alaska.

Its crude oil production comes primarily from Libya, Egypt, Nigeria, the Congo, the North Sea, and Angola. Smaller amounts of crude oil production come from Tunisia and in the United States. Eni's China production began in 1992, but it is only 1 percent of Eni's total crude oil production.

Gas[change | edit source]

Eni supplies natural gas. Gas sales reached 99 billion cubic meters in 2007. In June 2008 the company bought 57% of Distrigas, a Belgian company that supplies natural gas.[3] In March 2009 it bought the rest of Distrigas. As of June 30, 2009 Distrigas is a fully owned subsidiary of Eni.[4]

Power[change | edit source]

Eni's generates electricity in Italy, using both natural gas and solar power.

Engineering and construction[change | edit source]

Eni operates Saipem, a subsidiary, and owns 43% of the company. Saipem works in engineering, and oilfield services and construction.

Controversies[change | edit source]

The Central Energy Italian Gas Holding scandal in 2005 involved Eni and Gazprom. Eni was one of the two companies selected to provide natural gas to Italy. Italian Prime Minister Silvio Berlusconi was a close friend of one of the main owners of Eni. The Italian parliament canceled the contract.[5]

In 2009, the European Commission filed formal antitrust charges against Eni. The commission believes that Eni has conspired (planned) to keep competitors from using its gas pipelines.[6]

References[change | edit source]

Bibliography[change | edit source]

  • (en) Marcello Boldrini, Mattei, Rome, Colombo, 1969
  • (it) Marcello Colitti, Energia e sviluppo in Italia, Bari, De Donato, 1979
  • (en) Paul H. Frankel, Oil and Power Policy, New York – Washington, Praeger, 1966
  • (en) Pier Paolo Pasolini, Petrolio, various
  • (it) Nico Perrone, Enrico Mattei, Bologna, Il mulino, 2001 ISBN 8-81507-913-0

Other websites[change | edit source]