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eni e&p in IndonesiaMay 2010

eni e&p in Indonesia

2010 Working interest in 12 PSCs ■covering over 27,000 sqkm.Executing a deepwater drilling ■campaign of 4 wells in East Kalimantan.Preparing a Plan ■of Development (POD) for two hydrocarbon discoveries.A substantial partner ■in the ongoing development of the deepwater Kutei gas development projects.Implementing appraisal ■programme for exploitation of Coal Bed Methane in Sanga-Sanga CBM PSC.

1968/70Signed Production Sharing Contracts (PSC) with Pertamina for the exploration of the Teluk Berau and Arafura Sea Blocks in Eastern Indonesia.

Signed two additional PSCsfor the exploration of Blocks A and B in the East Natuna Sea.

1973/78Discovered the Natuna D-Alphagas field. Started production at the Teluk Berau field. 1980/84Explored the North Sakala Block. Completed activities in Indonesiaupon finishing production of the Teluk Berau field and fulfilling all exploration commitments.

2003/04Discovered the Gehem deepwatergas condensate field in Ganal PSC.

Drilled Aster discovery ■in Bukat PSC.Signed PSC for the exploration ■of Bulungan (offshore

East Kalimantan).

2006/07Executed a successful ■deepwater campaign, aimed at exploring and appraising the valuable Bukat PSC in the Tarakan Basin.A new gas and oil discovery, ■Tulip East-1, and successful testing of the Aster-4 appraisal well.

2008/09Over 20,000 boe/day equity ■production from Sanga-Sanga PSC.Extensive 3D seismic ■acquisition programme through application of state-of-the-art technologies.Executed a deepwater drilling ■campaign in East Kalimantan and North Sumatera.A new hydrocarbon discovery, ■Jangkrik, in the Muara Bakau block Kutei Basin, east of Kalimantan.Contracted a deepwater rig ■to further explore deepwater opportunities.Signed PSC for the exploration ■of West Timor - onshore and offshore NTT (Eastern Lesser Sundas).Signed PSC for the exploitation ■of Coal Bed Methane (CBM) in the Sanga-Sanga area.

2001/02eni e&p returned to Indonesiafollowing the acquisition of Lasmo plc.:

Working interests in the ■following PSCs: Sanga-Sanga, Ganal, Rapak, Bukat, Ambalat, Popodi, Papalang in East Kalimantan and Krueng Mane in North Sumatra.Ranggas discovery in Rapak ■PSC.

Signed PSC for the exploration ■of Muara Bakau (offshore East Kalimantan). Achieved International ■Certification of its Environmental Management System (ISO-14001).

eni was among the first international companies to enter into a Production Sharing Contract (PSC) with the Government of Indonesia for hydrocarbon exploration and production.With recently awarded Sanga-Sanga CBM PSC, eni indonesiacurrently holds working interests in 12 PSCs and operates 8 of these(2 through VICO). eni’s core business area is in East Kalimantanwhere it has participation interests in 10 PSCs.eni indonesia is committed to achieving a safe, healthy and incident-free workplace and protecting the environment in which it operates.All eni affiliates operating in Indonesia have outstanding safety performances. eni indonesia was one of the first companies in the Indonesian e&p industry to achieve the International Certification of Environmental Standard ISO-14001 and OHSAS 18001 for its overall operations.

With a view to creating an autonomous developmentcapacity of the local communities, eni promotesmicrocredit loans to help the start-up of small businesses. In 2008, Environmental and Social Impact Assessments werecarried out as an instrument to manage the effects of Company’s activities on the social and territorial context, in line with the most advanced international standards.Consultations were carried out with local authorities,communities and NGOs.In 2009, Vico Indonesia, owned by eni with a 50%interest, received the Blue and Green Proper Award from

the Ministry of Environment and the Zero Accidents Awards from Ministry of Manpower.

In the field of social development, eni through Vico Indonesia (owned by eni with a 50% share) has implemented several projects including the setting up of clean-water infrastructures, artesian wells and drainage systems, as well as the construction of a number of community sports and recreational facilities. Other initiatives carried out in 2009 include the hiring of local employees during the drilling campaign at Krueng Mane, donation of surplus drilling material (wood, cement) to local communities, support of community agriculture program and road improvement around the Badak field. Initiatives to protect local cultural heritage were also carried out in 2009, such as a writing competition for high school student and support actions for Dayak community relocation, including supporting their handcraft creation and marketing. Initiative to preserve local culture heritage were also carried out. Since 2004 VICO Indonesia conducts an Art & Cultural Festival, in which around 15-20 ethnic groups living in the VICO operation area perform their traditional dances and songs. For the Dayak Community, improvement of education as well as development of their handcraft are continuously carried out.

In the field of health care the main initiatives involved the construction and restructuring of rural health centers, the donation

of equipment for the diagnosis of malaria, the training of midwives, vaccination campaigns for children and pregnant women. eni has also carried out a number of projects, primarily in the East Kalimantan area, consisting in the promotion of primary health care programs, such as HIV/AIDS and drug “awareness” and blood donor campaigns, the supply of equipment to a public health clinic and the construction of a medical center. Work is currently being carried out on developing a Social Impact Assessment for evaluating the socio-economic impacts of strategic and large-scale projects. The highest international standards have been adopted in applying this evaluation technique. In 2009 a project has been launched for the community of Tarakan in collaboration with Smile Train Foundation and Eni Foundation to operate children affected by cleft lips and palate. Thanks to its successful initiatives within the community, in 2003 Vico Indonesia received from the President of the Republic the “Padma Community Development Award”, and for its contribution to the development of small-medium enterprises, in 2006 Vico Indonesia received the “Upakarti Award”.

sustainability

eni operated PSCS

eni non-operated PSCS

Vico

eni leasehold

PapalangGanalRapakPopodi

Sanga - Sanga PSCSanga - Sanga CBM PSC

Kutei basin

Muara Bakau PSC eni indonesia

Lhokseumawe

Krueng PSC eni indonesia

North Sumatera basin

Ambalat PSC eni indonesia

Bukat PSC eni indonesia

Bulungan PSC eni indonesia

Tarakan basin

West Timor PSC eni indonesia

Timor basin

eni spaPiazzale Enrico Mattei, 100144 Rome - ItalyPh.: +39.06.598.21 - Fax: +39.06.598.221.41eni.com

eni indonesia limitedAtrium Mulia Building, 3 and 3A Floors, Jl. H.R. Rasuna Said Kav. B10-11, Jakarta 12910, IndonesiaPh.: +62.213.000.320.0 - Fax: +62.213.000.323.0

eni is a major integrated energy company, committed to growth in the activities of finding, producing, transporting, transforming and marketing oil and gas. The company has global operations in 77 countries and employs more than 78,000 people.

It has adopted a model of sustainability focused on the enhancement and security of its employees and of the communities it works with, on environmental protection, on technological innovation and research, on fighting climate change and on energy efficiency.

eni has been included in the Dow Jones Sustainability Index World and in the STOXX also for the year 2009 confirming its commitment for a sustainable management at an international level for the third year in a row. Since 2007, eni has been included also in the prestigious index FTSE4Good. Since 2010 eni has been relying its communication to young talents from all over the world in various disciplines.The cover art is by the young Indonesian illustrator Ika Putranto. Her style has been influenced by the Impressionists, contemporary fashion, theatre and music.

eni’s activities eni’s activities comprise five businesses: exploration & production, gas & power, refining & marketing, engineering & construction and petrochemicals.

exploration & productioneni explores and produces oil and natural gas in Italy, North and West Africa, the North Sea, the Gulf of Mexico, Venezuela, Australia and in high potential areas such as the Caspian Sea, the Middle and Far East, India, Russia and Alaska. In 2009 hydrocarbon production averaged the level of 1.769 million boe/day. Proved hydrocarbon reserves at December 31, 2009 totalled 6.57 billion boe (Russian assets at 30%), with a life index of 10.2 years.

gas & powereni operates in the supply, transport, regasification, storage, distribution and marketing of natural gas and in electricity generation and sales in Italy and abroad. In 2009 overall sales amounted to 103.72 billion cubic meters of natural gas and 33.96 terawatthours of electricity.

refining & marketingeni operates in oil product refining and marketing mainly in Italy and Europe. With the eni/agip brand, it is the Italian market leader in the distribution sector.In 2009 overall sales totalled 45.59 million tons of refined products. In the same period refining throughputs were 34.55 million tons.

engineering & constructionsaipem (eni 42.9%) is a leader in the provision of engineering, procurement, project management and construction services for the oil & gas industry, with unique capabilities in designing and executing large scale offshore and onshore projects. saipem has extensive expertise in operating in conventional and deep offshore as well as in remote areas. Order backlog was €18,730 million at December 31, 2009.

petrochemicals polimeri europa (eni 100%) operates in the production and sale of a wide portfolio of petrochemicals and holds a significant market share in Europe where it has state-of-the-art plants all equipped with innovative technology. It also makes use of an efficient distribution network worldwide. In 2009 production amounted to 6,521 thousand tons.