Eni Upstream Trend

October 3, 2003

Stefano CaoChief Operating Officer

E&P Division

2

Production trend

Portfolio

Capital investment

Technology

Efficiency

3

1998 2001 2002 Target2006

Strong Production Growth*

* Net of portfolio rationalization

(kboe/d)

1,038

1,3691,472

Above1,800

CAGR 9.7%7.5%

~ 6%inclusive of

Fortum

4

Maintaining a Strong Production Growth(kboe/d)

3Q 02 3Q 03E

1,540E1,451

Jan-Sep 02 Jan-Sep 03E

1,530E1,453

>6.0% ~5.4%

5

Selectivity and Operatorship

2 3

96

10

6

104

7

1998 2002 2006

>100 30 ÷ 100 30<

N° of producing countries(kboe/d)

1998 2002 2006

Gross Equity

Operated production(kboe/d)

15

23

(kboe/d)

19 >70%of totalequity

1,511

780

2,100

900

3,100

1,300

6

146 141 137

177

226202

100

150

200

250

300

Production Growth with Strong Reserves Replacement

3017

32

29

17

18

13

12

824

Reserves Replacement Ratio

Italy

North Africa

West Africa

North Sea

Rest of World

Italy

North Africa

West Africa

North Sea

Pro

du

ctio

n(%

)R

ese

rves

(%)

3821

23

24

19

16

15

21

18

5

1998 2002

(organic)

(all sources)

%

11.5

9.8

5.3

0

5

10

15

98-00 99-01 00-02

Production growth

%

Rest of World

7

44%61%74%

45%37%

26%

11%

1998 2002 2006

Production by Type of Contract

kboe/d

1,038

1,472

>1,800

Others(buy back, service)

PSA

Concession

8

64% oldproduction

73% oldproduction

27% newproduction

36% newproduction

1998 2002 2006

! Fortum(2003)

Good Level of Production Renewal

>1,800

1,038

1,472

CorporateAcquisition

Producingfields and

rationalization

Producingfields and

rationalization

CorporateAcquisiton

New production

New production

Main fields

! Abo (2003)! Wafa (2004)! South Pars (2004)! Kizomba A(2004) ! Bonga (2004)! NC41 (2005)

Main fields

! Elgin/Franklin! Asgard! Temsah! Villano! Hapy! Baltim! Clara complex! Kuito

! British Borneo (2000)! Lasmo (2001)

(kboe/d)

9

Production trend

Portfolio

Capital investment

Technology

Efficiency

10

Maximize synergies

Leverage participation leveland operatorship

Capture growth potential

Focus on strategic value

Selectivity based on strict financial discipline

Enhance

the value of

E&P Portfolio

11

Portfolio Rationalization:actions delivered and in progress

Ecuador100% Villano

ItalySPI company

GabonEni assets

U.K.19 commercial fields and

marginal discoveries

All disposed All disposed NPV

Italy25% in Tempa Rossa

Delivered In progress

Qatar45% stake in Alkhalij

12

MIKKELMIKKEL

BRAGEBRAGE

GOLIATHGOLIATH

HEIDRUNHEIDRUN

ASGARDASGARD

Gas44%

Liquids56%

Eni 20.4%

ExxonMobil20.4%

Inpex8.3%

ConocoPhillips10.2%

Shell20.4%

Total20.4%

KAIRAN

AKTOTE

KALAMKAS

KASHAGAN

Strengthening of Portfolio Assets

Kashagan

! May 2003: preemption* of BG interest (16.67%), Eni + 3.71%

Fortum

Reserves = 200 M Boe

Heidrun21%

Brage3%

Mikkel6% Goliath

4%

Asgard66%

! 76% of acquired reserves in already participated assets

* Pending completion

13

Production trend

Portfolio

Capital investment

Technology

Efficiency

14

Regional distribution

15.6 Bln euro*(defined projects only)

2003-2006 Capital Investment

Activity distribution

North Sea14%

West Africa21%

Italy11%Americas

10% North Africa23%Central

Asia11%

Others10%

Exploration14%

Development*86%

*Inclusive of Fortum acquisition

15

2003-2006 Exploration Features

Main areas of activity

U.S.A.

VENEZUELA

BRAZIL

ANGOLACONGO

NIGERIA

EGYPT

AUSTRALIAINDONESIA

KAZAKHSTANITALY

U.K.

NORWAY

RUSSIA

Onshore24%

Conventional 28%

Deep14%

Ultradeep34%

O f f s h o r e

MatureExploration

31%

FrontierExploration

31%

Focus Area

38%

16

2002 and 2003 Main Exploration Successes

KazakhstanKalamkas (20.4% Op.)Kashagan E3 (A) (20.4% Op.)Kashagan E4-E5 (A) (20.4% Op.)

AngolaGabela (bl.14) (20%)Reco Reco (bl.15) (20%)Clochas (bl.15) (20%)

MauritaniaChinguetti (Banda) (35%)

U.S.A.Timon K2 (A) (18.2% Op.)Champlain (A) (37.5%)

TunisiaBaraka (100% Op.)

ItalyPanda (37.5% Op.)

NigeriaBonga SW (A) (12.5%)

VenezuelaCorocoro (A) (40%)

EgyptTennin (50% Op.) Indonesia

Rangas (20%)Gandang (A) (20%)Gehem (20%)Selatan (A) (20%)

U.K.West Franklin (21.9%)Farragon (30%)

20022003(A) Appraisal

AlgeriaBlock 404 (25%)

17

2002 and 2003 Start ups and Sanctioned Projects

U.K.Jade

KazakhstanKarachaganak: start up export through CPC to Black Sea

IranDorood;Balal

AlgeriaBlock 208BKNE/RBK; Ourhoud;Rom Est

U.S.A.King Kong/Yosemite

T&TNCMA

PakistanBHIT; Sawan

TunisiaAdam

NorwayEkofisk EAG

KazakhstanKashagan dev. plan submitted

CroatiaAnnamaria/Ika/Ida

AustraliaBayu UndanWollybutt

AngolaKizomba B, Xicombaand Sanha condensate

NigeriaLNG 4&5 train EA; Okono; Abo

VenezuelaCorocoro

Project sanctionedStart up

18

Forthcoming Opportunities

" Angola Landana-Tombua; Kizomba C; Marimba

" Kazakhstan Kashagan (additional stake 3.71%)

" Nigeria LNG upstream: Bonny 6th Train and Brass

" Norway Asgard Q-Template; Tyrihans

19

" Expected monetary value (EMV)

" PV Ratio = EMV/PV capex

" Hydrocarbon reserves" Probability of success " Operatorship/working

interest

Economicdrivers

Technicalmateriality

" Net Present Value" Present Value Ratio (NPV/PV

capex)" AARR" Pay Out Time

DevelopmentExploration

Growth through Capital Discipline

Monitoring

" Production level and capital materiality

" Operatorship" Synergies

Reauthorization when material changes occur:

# NPV# PV Ratio# Capex# First oil

Reauthorization when material changes occur:

# EMV# Capex

20

Production trend

Portfolio

Capital investment

Technology

Efficiency

21

ADVANCED “LEVEL 6” MULTILATERAL DRILLING

Nigeria - Idu

Kazakhstan - Kashagan

HP RAWGAS INJECTION;INNOVATIVE DRILLING

ADVANCED MATERIALS FOR PIPELINE INTEGRITY

Italy – Ragusa

Congo - Kitina

ADVANCED TECHNOLOGY FORPRODUCTION FLOW ASSURANCE

U.K. - Stirling

NEW APPROACHES IN FRACTUREDRESERVOIR EXPLOITATION

Venezuela - Dacion

INNOVATIVE TECHNOLOGYFOR RESERVOIR IMAGING

INNOVATIVE TECHNOLOGIESTO BOOST PRODUCTION

GOM - Allegheny

Libya - Elephant

INNOVATIVE METHOD TOIMPROVE SEISMIC IMAGING

Egypt - EDDM

LEAN PROFILE DRILLING

Leverage to Create Value

22

Production trend

Portfolio

Capital investment

Technology

Efficiency

23

500

650

870Million Euro

Cost Cutting

Target1999-03

Target 1999-05

Target 1999-06

113%of target

99-02

560

G&A

Procurement

Drilling

Synergies

Exploration

Technology

24

98-00 99-01 00-02 98-00 99-01 00-02

5.75.25.3

0

1

2

3

4

5

6

7

8

9

10

98-00 99-01 00-02 98-00 99-01 00-02

3.63.8 3.8

0

1

2

3

4

5

6

98-00 99-01 00-02

F&D costs($/boe)

Focus on Unit Costs

1.41.5

1.7

0

1

2

3

4

5

6

7

8

9

10

98-00 99-01 00-02

18% 18% reductionreduction

Discovery costs($/boe)

* Benchmark Group includes BP, ExxonMobil, Shell, Total, ChevronTexaco, ConocoPhillips, Repsol YPF

Eni Benchmark Group*

Lifting costs($/boe)

2001: Discovery and F&D costs net of Lasmo acquisition2002: F&D costs net of Buy Back (Iran)

25

Conventional

Normalized*

F&D Costs Conventional vs Normalized

Exploration costs + Development costs

Total additional proved reserves

Exploration costs

Total additional proved reserves

Current

Additional proved

developed reserves

+

Development costs

+Future

Remaining proved

undeveloped reserves

(*) Source: J.P. Morgan

26

F&D Costs, Conventionally Calculated and Normalized

Source: JP Morgan

3.6

4.8

5.0

5.2

5.2

5.7

5.7

5.9

3.8

8.6

4.2

4.2

4.5

4.7

6.8

6.9

REPSOL

SHELL

BP

EXXON MOBIL

TOTAL

CHEVRONTEXACO

ENI

CONOCOPHILLIPS

Normalised 3 year Average (00-02) Standard Method 3 Year Average (00-02)

$/boe

27

8.9 9.2 9.7 9.7 10.1 10.4

11.912.7

EniBPChevronTexaco

ExxonMobil

ConocoPhillips

RepsolYPF

TotalShell

2000-2002 Cash Flow($/boe)

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

Source: Deutsche Bank

28

Reinvestment Efficiency – R.E.

Cash Flow/boeR.E. =

F&D normalized

Number of new barrels that cash flow

from each barrel produced can add

29

Reinvestment Efficiency(Cash Flow vs F&D Normalized)

BPExxon Mobil

Shell

Chevron TexacoConoco

Phillips Eni

Repsol YPF

Total

3

4

5

6

7

1,0 1,1 1,2 1,3 1,4 1,5 1,6 1,7 1,8 1,9 2,0 2,1 2,2 2,3 2,4 2,5 2,6 2,7 2,8

F&

D n

orm

ali

zed

$/boe

Average 00-02 Cash Flow/boe

F&D normalized

Source: Deutsche Bank, JP Morgan

30

" PRODUCTION" 6% growth

" Operatorship and production renewal

" PORTFOLIO" Enhance the value

" Disposals and acquisitions

" CAPITAL INVESTMENT" Profitability

" Capital discipline

" TECNOLOGY AND EFFICIENCY" To be competitive

" To improve performance

Strategy for Profitable Growth

31

Eni in Kazakhstan

Reserves

Operatorship

Production

Challenges & Skills

Relationship

32

Reserves

Russia

Turkey

GeorgiaAzerbaijan

Armenia Turkmenistan

CaspianSea

Black Sea

AlmatyAstana

Samara

Orenburg

Uralsk

AksaiBolshoiChagan

Atyrau

Kropotkin

Komsomolskaya

CPC

Novorissiysk

Tengiz

Karachaganak2-3 billion boe

North Caspian Sea:$ Kashagan 9-13 billion

boeFurther explorationactivity in:$ Kashagan SW$ Kalamkas$ Aktote and Kairan

Uzbekistan

33

2002 2010E 2015E

Eni a Key Player in Kazakhstan

939

2,000-2,600*

14%30-40 %

40-50 %

2,700-3,800*

(*) Source: Cera, Kazakhstan Ministry of Energy

kboed

Eni Operated Production

34

0

50.000

100.000

150.000

200.000

250.000

300.000

350.000

400.000

450.000

500.000

2.001

2.003

2.005

2.007

2.009

2.011

2.013

2.015

2.017

2.019

2.021

2.023

2.025

2.027

2.029

2.031

2.033

2.035

2.037

BO

E/d

100% Eni share

Karachaganak Production ProfilePhase 2 (2003/2037)

35

Kazakhstan:Project Challenges and Industrial Skills

" Very shallow waters" Harsh environment " Sulphur management

Technical and technological

Environmental

Eni’s project

management

and

engineering

know how

" High reservoir pressure" High H2S content " Raw gas re-injection

36

Eni in Kazakhstan: relationship

" Understand Kazakhstan culture

" Build relationship with Authorities

# Local content

# Know-how transfer

# Social programmes

Leveraging on relationship to sustainlong term growth