Eni: Full Year 2017 and Fourth Quarter Results
Exploration & Production
Hydrocarbon production at record level:
- – reached 1.92 million boe/d in December 2017, marking an all-time high for Eni;
- – produced an average of 1.89 million boe/d in the fourth quarter, the highest quarterly production in the last seven years (up by 1.9%); FY production averaged 1.82 million boe/d (up by 3.2% y-o-y), its highest ever level. Excluding price effects at PSAs and OPEC cuts, production was up by 3.7% in the fourth quarter and by 5.3% for the FY 2017;
- – start-ups and ramp-ups additions: added 243 kboe/d on average over the FY, leveraging on Eni’s integrated model of exploration and development, designed to optimize new projects’ time-to-market (Zohr in Egypt, East-Hub in Angola, OCTP in Ghana, Jangkrik in Indonesia, all in 2017) and to accelerate fields ramp-up (as in the case of the Noroos project).
- Achieved production start-up at the super-giant Zohr gas field in record time-to-market: in less than two years from the FID and two and a half years from discovery.
- Exploration resources: discovered 1 billion boe of new resources, of which 800 million from in house exploration with a discovery cost of approximately 1 $/bbl.
- Successfully completed the exploration campaign in Area 1, offshore Mexico: the appraisal of Tecoalli discovery, which followed that of Amoca and Miztòn, resulted in a rise in estimated hydrocarbons in place of the Area to 2 billion boe, of which approximately 90% oil.
- Renewed the exploration portfolio adding approximately 97,000 Km2 of new acreage:
- – obtained 50% of the mineral rights of the Isatay Block in the Kazakh Caspian Sea;
- – signed an exploration and production sharing agreement of Block 52, offshore Oman (Eni 85%);
- – acquired new exploration licenses in Morocco, Mexico, Cyprus, Ivory Coast and Norway.
- Proved hydrocarbon reserves: 7 billion boe with an organic replacement ratio of 103%. Excluding the de-booking of a volume of PUD reserves to unproved in Venezuela due to the Country’s current outlook, the ratio increases to 151%.
- Dual Exploration Model success: Eni closed the divestment of a 25% stake in Area 4 in Mozambique to Exxon Mobil in the fourth quarter of 2017.
- E&P adjusted operating profit: €1.86 billion in the fourth quarter of 2017 (up by 33%); more than doubled y-o-y at €5.17 billion.
