Refining & Marketing. Mario Taraborrelli COO

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1 Refining & Marketing Mario Taraborrelli COO

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 2005 Industrial Results Refining Increased throughput and conversion capacity Mln ton Refinery throughput Conversion Index (%) Marketing ITALY Consolidated Agip brand sales in a declining market IP brand disposal completed EUROPE Increased sales +6% 3% Italian market (MlnTon) -1.9% % 49% 45% 52% % Agip sales -1.4% 3% % 44% 41% 53% 56% Gasoil Gasoline Others 3

4 Refining Strategy Main strategic drivers Grow refinery throughput Upgrade capacity: Improving diesel conversion Increasing crude oil supply flexibility Processing low cost raw materials 2009 Targets Mton/y Greater integration with upstream Capacity expansion tailored to meet demand Refinery throughput Conversion Index (%) 4

5 Refining Upgrading: Sannazzaro Sannazzaro Kton/y Increase conversion index Total Capex : H.P. Hydrocracker BDA 1,500 1,000 43% 63% 0.4 Bln Vacuum 2, Increase middle distillate yield 48% 59% Increase processing of heavy/sour crude oil 5

6 Refining Upgrading: Taranto Total Capex : 0.8 Bln Crude Distillation (CDU) Vacuum H.P. Hydrocracker HDS Logistic Kton/y 5,000 2, ,400 Pipelines & depot (a) (a) Pipeline for fuels (b) Pipeline for VN to Brindisi Taranto Increase CDU capacity Improve conversion capacity Higher efficiency in logistic Higher integration with local crude oil and domestic market Increase middle distillate yield (b) 40% 52%

7 Refining Performance Mton Conversion index and equity oil run 30 59% % 13 Conversion index * Av. Europe 2005 = 33% Conventional CDU ** Capacity ( Mton/y) Equity Oil Run (Mton/y) Diesel conversion % 44% 13% 11% Througput (Mton) Middle Distillate yield Fuel Oil yield (*) Average conversion capacity/balanced primary distillation capacity (**) Crude distillation unit 7

8 Retail Sales in Europe Drivers in marketing 15.8 (bln lt) 17.1 Network upgrading (mln lt/ss) Expansion across Europe Improving fuel quality IP brand disposal Italy Other Europe Average throughput 8

9 Capex (Mln /y) 660 ~850 52% 35% Commercial 48% 65% Industrial Av Av % ~850 25% HSE and Maintenance 64% 75% Development Av Av

10 Appendix

11 European Scenario Gasoline consumption Middle distillate consumption bbl/d bbl/d Switch consumption from gasoline to gasoil BTZ ATZ Crude price spread $/bbl Widening heavy sour-light sweet crude differential 11

12 Refining System in Europe Mton Retail expansion 40.6 areas Refineries % 58% 48% Throughput in Italy Throughput other countries Conversion Index 12