Oil firm, Eni Energy has announced a four strategic plan, from 2021 to 2024, that will lead to zero emissions.

This is another step in boosting its transformation.

According to its CEO, Claudio Descalzi, Eni is strongly committed to continue to play a key role in sustainability and innovation, supporting social and economic development in all our activities.

“Today we are taking another step forward in boosting our transformation. We commit to the full decarbonization of all our products and processes by 2050. Our plan is concrete, detailed, economically sustainable and technologically proven”.

Furthermore “today we are also announcing the merge of our renewable and retail businesses. With this new entity, our large customer base will continue to grow in synergy with our renewable business”, he said.

“Additionally, the combination of the firm’s bio-refining and marketing businesses will play an important role in delivering sustainable mobility”, Mr. Descalzi said.

These initiatives will greatly contribute to the decarbonization of its products, impacting positively on our customers.

The CEO also said the strong financial discipline and a resilient cash generation can upgrade its distribution policy reflecting the strategic progress of the four year plan.

Decarbonization

In 2020, Eni announced its target covering scope 1, 2 and 3 emissions, based on its fully comprehensive methodology of Ghana has assessment, considering all the activities and every traded product, to reach a reduction of its absolute emissions by 80% in 2050.

This year, it says it is improving this target, committing to reach the complete carbon neutrality by 2050.

Production

It believes production will grow at an average of around 4% per year during the plan, mainly organically.

During the four-year plan 14, major projects will be brought on stream, operating over 70% of the new production. These are mainly in Angola, Indonesia, Mexico, Mozambique, Norway and United Arab Emirates.

In terms of future production mix, around 55% of P1 reserves will be gas in 2024, vs. 50% today.

Upstream free cash flow will be in excess of €18bln at Eni scenario in the four-year plan and will amount at approximately €14bln assuming a flat scenario of $50/bbl, covering two times the company’s distribution needs.

Financial strategy

During the four-year plan, Eni, says it will pursue the transformation of its industrial model with increased investments on new businesses.

Net capital employed in these activities will reach 10% of the total, doubling the current level.

The focus on short cycle initiatives the company said will allow it to maintain a high degree of flexibility, limiting unproductive capital – mainly linked to more complex and long-term projects – within 20% of total investments.