Eni splits business into upstream and renewables units

Natural Resources will continue to build up the value of Eni’s oil and gas upstream portfolio, with the objective of reducing its carbon footprint by scaling up energy efficiency and expanding production in the natural gas business, and its position in the wholesale market. Furthermore, it will focus its actions on the development of carbon capture and compensation projects.

The business group will incorporate the company’s oil and gas exploration, development and production activities, natural gas wholesale via pipeline and LNG. In addition, it will include forestry conservation (REDD+) and carbon storage projects, and sustainability which will continue to integrate across all Eni’s activities. The company Eni Rewind (environmental activities), will also be consolidated in this business group.

Energy Evolution will focus on the evolution of the businesses of power generation, transformation and marketing of products from fossil to bio, blue and green. In particular, it will focus on growing power generation from renewable energy and biomethane, it will coordinate the bio and circular evolution of the company’s refining system and chemical business, and it will further develop Eni’s retail portfolio, providing increasingly more decarbonised products for mobility, household consumption and small enterprises.

The business group will incorporate the activities of power generation from natural gas and renewables, the refining and chemicals businesses, Retail Gas&Power and mobility marketing. The companies Versalis (chemical products) and Eni gas e luce will also be consolidated in this business group.

The two new business groups will maintain a strong link in the management of the hydrocarbons value chain, with the objectives of running in the best possible way the phases of the energy transition, and jointly developing decarbonisation processes to supply green, blue and bio products. Decarbonised, through carbon capture, gas to power and gas to hydrogen projects will be examples, allowing to add value to gas resources and provide customers with entirely sustainable energy.

Furthermore, in terms of central structures, a new function – Technology, R&D, and Digital – will be created. Research projects cover the whole value chain, with the objective of reducing risks, increasing efficiency, reinforcing technological leadership and promoting better quality, products, plants and processes.

The new group will incorporate the current ICT and digital activities, which are a key support to the transformation of the company’s business model, as well as the management of the technical and scientific knowledge which the new business groups will implement.

All other central functions will be soon further streamlined and reorganised to offer the best support, in terms of structures and competences, in delivering on Eni’s new mission and on the objectives of the two new business groups.

The new organisational structure will be implemented over the coming weeks.

Claudio Descalzi, CEO, said:

“This new structure reflects Eni’s pivot to the energy transition. An irreversible path that will make us leaders in decarbonised energy products. With our new plan, in February, we have set our path for the next 30 years, as of today it is unique in our industry. To make the plan come true, and position us to accelerate its delivery, we are creating two new business groups in our company. They will have specific objectives, but they will also cooperate to deliver on the transition and to provide our customers with the widest range of sustainable products. The reorganisation also involves the corporate structures, which will evolve, continuing to be the central reference point for strategic and control processes, providing an effective support to meet the business groups’ objectives. The fight against climate change and promotion of sustainable development are recognised by governments, civil society, investors and business alike as priorities for global development. Only those who pursue these in an innovative way will create value in the long term. We want to be main actors in a just energy transition, in which we believe, and is central to Eni’s transformation.”

Read the article online at: https://www.oilfieldtechnology.com/special-reports/05062020/eni-splits-business-into-upstream-and-renewables-units/