E&P 2004 Business Update and Field Trip to Egypt and Libya

October 26th, 2004

Stefano CaoChief Operating OfficerExploration & Production Division

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.

3

1,5451,5561,621

1,5561,628

1,498

52

382

1000

1100

1200

1300

1400

1500

1600

1700

Strong Production Growth

1Q 03 1Q 04 2Q 03 2Q 04 3Q 03 3Q 04E

31.931.535.4

26.0

41.5

28.4

PSA effectBrent $/bl Excluding Psa effect

kboe/d

8.8% 6.6%2.6%

Reported

8.7% 4.2% -0.7%

4

Jan-Sep03

Jan-Sep04E

1,5981,537

31

1000

1100

1200

1300

1400

1500

1600

1700

Strong Production Growthkboe/d

Brent $/bl PSA effect

Nine months growth +4.0%

Nine months growth net PSA effect

+6.0%

Growth in line with 2003-07 target

+5%*

* Reference conditions Brent ($/bl): 24 (04), 22 (05), 21 (06/07)

36.3

28.6

5

Production Sharing Agreement (PSA)

Cost oil:

• Recovery of Capex and Opex borne by the contractor

• Recovery is in kind. Volume of production equivalent to the amount of money to be recovered

• Volume depends on oil price level

Profit oil:

• Remuneration to the contractor

• Remuneration as a percentage of the production

• Volume is defined by specific contractual terms

6

* From Cost Oil and Profit Oil

PSA - Price Effect

100M$100M$

80 M$40 M$

5 Mbl

2.5 Mbl

2 Mbl

2 MblPRODUCTION*

REVENUES*

Profit: 20% of production (10 Mbl)

Cost recovery = 100 M$Cost recovery = 100 M$

20 $/bl 40 $/blOil price

7

1,598

1,537 50

42-31

Jan-Sep 03 PSA ProducingFields &

Divestments

NewProduction

Jan-Sep 04E

Production Contributions

• Darquain• Xicomba• Medusa• Elephant• Bayu Undan• Clara Ovest• Okpoho• Kizomba A

• Wafa• Rod & Satellites• South Pars 4&5

kboe/d

Jan-Sep 04EJan-Sep 03 4Q 04E

(net of PSA impact)>1,700

8

2004 Main Events

ANGOLAKizomba A (bl.15) (20% - 3Q04)Bavuca (bl. 15) (20%)Lianzi 1 (Angola/Congo) (10%)

ANGOLAKizomba A (bl.15) (20% - 3Q04)Bavuca (bl. 15) (20%)Lianzi 1 (Angola/Congo) (10%)

U.S.A.Timon/K2* (18.2% Op.)

St. Malo* (1.25%)

U.S.A.Timon/K2* (18.2% Op.)

St. Malo* (1.25%)

ALGERIARod & Satellites (64% - 4Q 04)

ALGERIARod & Satellites (64% - 4Q 04)

Start upExploration success* Appraisal

Start upExploration success* Appraisal

NORWAYLinerle (11.5%)

NORWAYLinerle (11.5%)

IRANSouth Pars (60% Op .- 4Q04)

IRANSouth Pars (60% Op .- 4Q04)

AUSTRALIABayu Undan (12% - 1Q04)

AUSTRALIABayu Undan (12% - 1Q04)

NIGERIAOkpoho (100% Op. - 2Q04)

NIGERIAOkpoho (100% Op. - 2Q04)

LIBYAElephant (33.3% Op. - 1Q04)Wafa (50% Op. - 3Q04)

LIBYAElephant (33.3% Op. - 1Q04)Wafa (50% Op. - 3Q04)

KAZAKHSTANKairan 1 (16.67 Op.)

KAZAKHSTANKairan 1 (16.67 Op.)

ITALYClara Ovest(51% Op. - 2Q04)

ITALYClara Ovest(51% Op. - 2Q04)

INDONESIAGehem 2 * (Ganal) (20%)Gula 3 * (Ganal) (20%)Gehem 3 * (Rapak) (20%)

INDONESIAGehem 2 * (Ganal) (20%)Gula 3 * (Ganal) (20%)Gehem 3 * (Rapak) (20%)

SAUDI ARABIA“Area C” New Acreage

SAUDI ARABIA“Area C” New Acreage

CONGOPegase NM 1 (30%)

CONGOPegase NM 1 (30%)

EGYPTTaurt 1 (50%)

EGYPTTaurt 1 (50%)

RUSSIA“Donbas” New AcreageRUSSIA“Donbas” New Acreage

9

Projects Start Ups on track

Investment $ 3.4 bn

Reserves 1 bn boe

Eni share 20%

Kizomba A (Angola)

Investment $ 3.5 bn

Reserves 1 bn boe

Eni share 12%

Bayu Undan (Australia)Elephant (Libya)Mediterranean Sea

Azzawiyah Terminal •

Tripoli

30”x725 km PIPELINE (EXISTING)

NC-115

24” PIPELINE75 km

Escarpment

CE

AGOSP

Accommodation Camp

D

B

Overhead Power from NC-115

Wellpads

Pump StationHamada NC8 Field

Provision for future Pump Station

Provision for future Pump Station

Investment $ 1.1 bn

Reserves 0.7 bn boe

Eni share 33% Op.

Jan. ‘04 Feb. ‘04 Aug. ‘04Start-up

10

Projects Start Ups on track

Start-up Nov. ‘04

South Pars 4 & 5 (Iran)

Investment $ 2 bn

Reserves 2.4 bn boe

Eni share 60% Op. (buy back)

Oct. ‘04

Investment $ 0.6 bn

Reserves 0.3 bn boe

Eni share 64%

ROD & Satellites (Algeria)

Oct. ‘04

Investment* $ 7.1 bn

Reserves 1.75 bn boe

Eni share 50% (upstream)* Including Greenstream

Libyan gas project (Libya)

11

Karachaganak - Status

April 2004: Start-up of KPC and Unit-2

May: Raw Gas injection at 500 bars

June: First shipment of oil at the Novorossiysk terminal

July: Field production 350,000 boe/d (Eni >100,000 boe/d)

2010 2020 20372004

0

100

200

300

400

Total Production

Eni Share

kboe/d

12

Original oil in place: 38 bln barrels

Reserves: up to 13 bln barrels of oil with partial gas injection

Multi-phase development

Capital investment:

• First phase (East area) 10 bln $

• Full field development 29 bln $

Commercial production: 2008

WEST AREAWEST AREA

NECK AREANECK AREA

EAST AREAEAST AREA

Kashagan

13

Kashagan - Status

Development in progress in accordance with schedule

50% of the first phase investment awarded

Early Works for Eskene onshore site in progress

Construction of first hub island almost completed

Drilling of development wells in progress

2008 2011 2016

Start upStart up

First phaseFirst phase

Full FieldDevelopment

Full FieldDevelopment

75,000

450,000

1,200,000

bopd

14

Exploration Completed with 100% Success

Kashagan: two discovery wells K-E1 and K-W1 and 5 appraisal wells

Kalamkas: discovery well in 2002, 3D seismic, appraisalplanned

Aktote: discovery well in 2003, 1st appraisal completed

Kashagan SW: discovery well in 2003

Kairan: discovery well in 2004, ongoing studies to appraisediscovery

Russia

Kazakhstan

Caspian Sea

KASHAGAN SWKASHAGAN SW

KALAMKASKALAMKAS

KAIRANKAIRAN

AKTOTEAKTOTE

KASHAGANKASHAGAN

15

Iraq

Kashagan - Export Alternatives

CaspianSea

KASHAGANKASHAGAN

Samara Samara

Turkey

Uzbekistan

Kazakhstan

Russia

Iran

Georgia

Ukraine

Moldavia

Poland

Turkmenistan

Azerbaijan

CeyhanCeyhan

BTC (in progress)BTC (in progress)

TbilisiTbilisi

BakuBaku

AtyrauAtyrau

NovorossiyskNovorossiysk

CPCCPC

To Novorossiysk (a Bosphorusbypass is required)

To Novorossiysk (a Bosphorusbypass is required) AktauAktau

To AktauTo Aktau

Trans-Caspian ShippingTrans-Caspian Shipping

To ChinaTo China

To Baltic SeaTo Baltic Sea

ExistingFuture alternatives

16

Portfolio Rationalization: actions delivered

Gabon exit

Qatarexit

U.K.32 commercial fields and marginal discoveriesOperated fields T-Block and B-Block

ItalyTempa Rossa (25%)

Stargas (SPI mineral assets)

Netherlandsexit

Mauritaniaexit

Associated production reduction to date: 70 kboe/dCapital employed reduction: ~ 700 Mln euro

U.S.A.Gom - Tail assets

AzerbaijanLukagip (50%)

17

2004-2007 Production: Focus on North Africakboe/d

20072003

1,562

1,900

1,598

Jan-Sep 04E

North Africa (Egypt, Libya, Algeria, Tunisia)

* Net of portfolio rationalization - Reference conditions Brent ($/bl): 24 (04), 22 (05), 21 (06/07)

CAGR +5%*

North AfricaCAGR 11%2003-2007

22% 24%28%

18

Proved Reserves December 31, 2003

Total : 7.3 bn boe

26% 30%

Gas: 3.1bn boeLiquids: 4.2 bn boe

NorthAfricaNorthAfrica

19

Eni North Africa Production

0

100

200

300

400

500

2003 2004 2005 2006 2007

GasLiquids

kboe/d

CAGR 2003-07

• Gas +21%

• Liquids +6%

710

1200

460

300

2003 2007

Gross

Equity

Operated production (kboe/d)

20

2003 2004E 2004-07

Eni North Africa Capex

1,5681,58679

1,507 1,483

North Africa: 21%of 2004-07 E&P Capex

Development

Exploration

Million €

85

400

3,500

3,100

21

0

5

10

15

20

25

30

99-01 00-02 '01-03

13.9 13.6 13.2

16.617.118.1

0

5

10

15

20

25

30

99-01 00-02 01-033

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

99-01 00-02 '01-03

11.711.811.1

10.610.8

10.2

3

6

9

12

15

18

99-01 00-02 01-030

1

2

3

4

5

6

99-01 00-02 '01-03

3.93.83.8

3.53.6

3.8

0

1

2

3

4

5

6

99-01 00-02 01-03

North Africa

Lifting costs($/boe)

Life index(years)

Benchmark Group includes BP, ExxonMobil, Shell, Total, ChevronTexaco, ConocoPhillips, Repsol YPF, Eni E&P

Cash Flow($/boe)

Cash Flow = Net Income + Exploration expenses + DD&A

Eni E&P Benchmark GroupEni North Africa

22

Eni Core Area in North Africa - Libya and Egypt

Acreage : 21,268 sqkmReserves 2P (31.12.03) : 1.7 Bln boeJan-Sep 04 Production : 88,000 boepd

Acreage : 12,849 sqkmReserves 2P (31.12.03) : 0.9 Bln boeJan-Sep 04 production : 200,000 boepd

Libya Egypt

Western Libya Gas Project

24

Western Libya Gas Project: monetize equitygas leveraging on business integration

Equity gas TrasportationCoastal plant

Strong integrationalong the value chain

Marketing

25

Western Libya Gas Project: overall scheme

LIBYA

LIBYA

SICILY

SICILY

540 Kmcoast to coast

•Ø 32”

•Ø 16” •Ø 36”

•Ø 10”

•Ø 32”

1.127

540 Km

MELLITAH

SABRATHA Plt.

SICILY

GELA

BahrEssalamLIBYA

Wafa

Project completed on schedule and within budget

Capex 7.1 3.8(billion €)

100% Eni Equity

Upstream 3.0 bln €Mid stream gas 0.8 bln €

520 kmCoast to Coast

26

Western Libya Gas: World scale project

7.1 € billion overall capex>20,000 people employed

10 international main contractor/consortium9 main engineering/construction locations outside Libya

Langfang

YokohamaFukuyama

London

Sabratha & BahrEssalam

Mellitah

Wafa

ParisItaly

Tripoli UlsanKuantan

Dusseldorf

Malaysia

27

Western Libya Gas Project:strong integration along the value chain

Equity gas TrasportationCoastal plant Marketing

28

Western Libya Gas Project Upstream Overview

Eni Gas operator (Eni 50% - NOC 50%)

Reserves (Eni share):950 M boe

Gas Production of 10.0 Bcm/Y (100%)4.0 bscm/y - Wafa6.0 bscm/y - Bahr Essalam

of which:

8.0 bscm/y destined to Italy2.0 bscm/y destined to local market

Peak production by end 2005 :

Eni equity: 128 kboe/d

Local Gas Line

540 K

m

Onshore Pipelines

WAFADesert Plant

MELLITAHComplex

Wafa Coastal Plant, Mellitah Plant and gas compression

station

SABRATHA

SABRATHAPlatform

SubseaClusters

Gas Export Line

GREEN STREAM

29

Wafa Desert & Coastal Plants

Sept. 2002Sept. 2002Construction Start

2nd Sept. 2004Sept. 2004First Gas Production

29th Jun. 2004Sept. 2004First Oil Production

ACTUALPLANNEDWafa

Sept. 2002Sept. 2002Construction Start

12th Oct. 2004Oct. 2004First Oil Shipment

9th Sept. 2004Sept. 2004First Gas Delivery

ACTUALPLANNEDCoastal Plant

Wafa Desert Plant & Pipelines Wafa Coastal Plant (Mellitha)

SEPTEMBER 2002

SEPTEMBER 2004

30

540 K

m

540 K

m

540 K

m

Western Libya Gas ProjectUpstream

Onshore area - Wafa field12 oil and 17 gas wells, 8 workovers

Oil and condensate separation and stabilization. Gas dehydration and CO2 removal

32” gas pipeline and 16” liquidspipeline, 540 km long from Wafa toMellitah

Peak production (IV Quarter 2004):Eni equity: 65 kboe/d

31

540 K

m

540 K

m

540 K

m

Western Libya Gas Project Upstream

Coastal treatment plant -Mellitah

Onshore production treatment

WAFA liquids fractioning and propaneand butane recovery

Liquids storage and loading (oil, propaneand butane)

Offshore production treatment

CO2, H2S removal and propane, butanerecovery from Bahr Essalam producedgas

Bahr Essalam condensate stabilizationand treatment

32

540 K

m

540 K

m

540 K

m

Western Libya Gas ProjectUpstream

Offshore field - BahrEssalam

Offshore platform installation 190 mtwater depth. Equipped with gas separation and dehydration plantsDrilling of 38 wellsLaying of two sub-sea pipelines 110 kmlong for transport of gas (36”) and condensates (10”) from the platform tothe onshore treatment plant (Mellitah)Peak production (2005):Eni equity: 63 kboe/d

33

June 2002June 2002Project Kick-off

June 2005June 2005First offshore gas sales

May 2005May 2005Production System ready for Start-up

Actual/ForecastPlanned

Bahr Essalam FieldHighlights

KEY DATES

Sabratha platform

34

Overall Eni Equity Production Trend in Libya: strong growth driven by oil and gas

Production

Gas

Liquids

Time to harvest

>90

85

65

~250

CAGR 2004-07>35%

2004E 2007E

84

2003

kboe/d

35

Libya 2001-2007 Upstream Capex Profile

20032002

0.5

1.0

0.8

2004E 2005-07

1.0

2001

0.1

Capex: main contribution from gas project

Bln €

Overall

36

Libya - Equity Reserves at 31.12.2003

52%

48%

P1

1,184

Liquids

Gas

Million boe

Gas reserves

20% of total Eni proved gas reserves

37

Libya Gas Project:strong integration along the value chain

Equity gas TrasportationCoastal plant Marketing

38

WAFA

MELLITAH

•GELA

UPSTREAM

EXPORT SEALINE

L I B Y A

NC41 EXPORT SEALINEDiameter: 32”Length: 520 kmMax water depth: 1,127 mLaying period: 2003/04

OWNERSHIP

COMPRESSION STATIONInstalled power: tot. 128.4 MW Ready for operation: September 2004

Greenstream: gas transportation system

75%25%Eni

fully consolidatedin G&P Division

NOC

39

Greenstream: gas transportation system

RECEIVING TERMINALMetering system and Connectionwith Italian main network

TRANSPORTATION CAPACITY

8 bcm/y

NETWORK UPGRADE IN ITALY

Section length: 360 km

40

Libya: gas marketing

Gas sold to Italian player:

4 bcm/y to Edison 2 bcm/y to Gaz de France2 bcm/y to Energia

5

04E 05E

0.6

Supply build up to Italian market

06E

8bcm

Libya gas project supply

4 bcm/y WAFA6 bcm/y Bahr Essalam

of which 2 bcm destined to local market

Long term take or pay contracts(24 years)

Plateau production at 2006

41

Libyan Gas Projects Conclusions

Integrated projectsmonetizing equity gas and maximizing returns along the gas chain

World scale project delivery

Strong contributionto 2004-2007 production growth

Gas reserves available tosupply the growing demand in Italy

Local Gas Line

540 K

m

Onshore Pipelines

WAFADesert Plant

MELLITAHComplex

Wafa Coastal Plant, Mellitah Plant and gas compression

station

SABRATHA

SABRATHAPlatform

SubseaClusters

Gas Export Line

GREEN STREAM