Page 30 - EniFor2016_Report_eng

28 Eni for 2016 | Operating model

Upstream

model

The upstream model is based on exploration, which is the driver of:

Dual exploration
Organic Competitive Flexibility model for early
growth cost structure monetization of
discoveries

The exploration strategy is guided flows and dilute long-term risks. of the quality of the discoveries and
by the objectives of shortening Furthermore, Eni has a high the model’s flexibility, was 193%,
time-to-market and cost percentage of operatorship, which Eni’s best ever result. It has been
optimization when converting will reach 90% in start-ups over achieved completely organically
discoveries into productions. the next 4 years. This will ensure by generating value from the
Eni has adopted a development there is firm control of costs, discoveries made. The heart of this
in stages approach in order to timings and risks. In 2016 the rate strategy and these results lies in the
speed up start-ups and cash of reserve replacement, indicator enhancement of people.

˛ Evolution of reserves and resources ˛ Evolution of reserves and resources
Billion boe Billion boe
Proved reserves
Probable, possible and contingent
4
35 3.5
30 3.0
2016
25 2.5 50% P2/P3 + contingent
20 2.0
15 1.5 2015
25% Sold / being sold
10 1.0
5 0.5 2014 25% FID/awaiting FID in the
2017-2020 strategic plan
0 0
2014 2015 2016

+29% ≈50%
of discovered resources
2016 vs 2014 are already generating
value