Newbase 02 march 2020 energynewsissue 1321 by khaledalawadi compressed-compressed_compressed

Copyright © 2020 NewBase www.hawkenergy.net Edited by Khaled Al Awadi – Energy Consultant All rights reserved. No part of this publication may be reproduced, redistributed,
or otherwise copied without the written permission of the authors. This includes internal distribution. All reasonable endeavors have been used to ensure the accuracy of the information contained in this
publication. However, no warranty is given to the accuracy of its content. Page 1
NewBase Energy News 02 March 2020 - Issue No. 1321 Senior Editor Eng. Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
ADNOC investing in development of Emirati youth, says ADNOC CEO
WAM/Tariq alfaham/Hatem Mohamed
ABU DHABI, 29th February, 2020 (WAM) -- The Abu Dhabi National Oil Company, ADNOC, hosted
a ‘Youth Circle’ at its Umm Lulu offshore platform – one of the world’s largest – as it focuses on the
future and continues to invest in the development of Emirati youths to build long-term resilience and
ensure ADNOC remains an integral part of the UAE’s economy.
Held under the theme "The Role of UAE Youths in Driving Sustainable Business," the Youth Circle
examined ways UAE youths can develop their leadership skills to strengthen their contribution to
the delivery of ADNOC’s 2030 strategy. It also reviewed opportunities for youth professional
development and ways to encourage Emirati youths to work in remote sites to give them practical
experience as they develop their leadership skills.
The event, the first in ADNOC’s series of Youth Circles for this year, was organised by ADNOC’s
Youth Council and hosted by Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group
CEO, with Shamma bint Suhail Faris Al Mazrui, Minister of State for Youth Affairs, and Saeed Al
Nazari, Director General of Federal Youth Authority, attending.
Addressing the Youth Circle, Dr. Al Jaber said: "ADNOC is proud to play a leading role in developing
and empowering the next generation of highly skilled and talented Emirati youths who will be the
driving force of ADNOC and the UAE’s future success. We are pleased that many of our youths are
www.linkedin.com/in/khaled-al-awadi-38b995b

managing key projects across our offices and sites, and actively contributing to our strong
operational and financial performance.
"In today’s complex and fast-evolving energy landscape, the youth will play an even more crucial
role in ensuring we thrive and remain a key contributor to the UAE’s economy."
Dr. Al Jaber called on the youth to take
advantage of ADNOC’s bespoke
leadership and professional
development programs to unlock their
full potential. He highlighted that in line
with the wise guidance of the UAE’s
leadership, ADNOC is providing
opportunities for Emirati talent across
its value chain and focusing on
leveraging state-of-the-art
technologies and artificial intelligence
to equip the youth with the skills
required to have flourishing careers.
Dr. Al Jaber underscored ADNOC’s
unwavering support to promoting diversity and women’s empowerment, in line with the leadership’s
vision to enable everyone to fully contribute to the continued progress of the nation. He noted
women today occupy 15 percent of senior leadership positions at ADNOC.
Concluding, Dr. Al Jaber stressed the need for the youth to gain practical experience in the oil and
gas sector to enrich their knowledge and build successful careers. He stressed the importance of
maintaining the highest health, safety, and environment standards and reinforced ADNOC’s focus
on people, performance, profitability, efficiency, sustainability, and the future.
Shamma Al Mazrui said: "Hosting the Youth Circle offshore today, echoes ADNOC’s commitment
to providing its youth with the optimal conditions to grow, learn and thrive. Youth are the growing
majority of ADNOC’s employees and we are proud to witness their leading role in shaping the oil
and gas industry of our nation today."
Al Mazrui concluded by expressing her pride in the unsung heroes and youth who work across
various disciplines and positions, asserting that they are more than capable of leading the UAE’s
energy industry and supporting the country’s economy, in line with the highest international
standards.
Al Nazari said: "Today, we are pleased to be among the creative young cadres in the oil and gas
sector. Harvesting these fields will not bear fruit without their hard work and perseverance. Our
leadership taught us that investing in people is the most valuable resource in investing in a
successful future." He added the Federal Youth Authority is proud to work with ADNOC, which has
empowered youth in various energy fields.
Held in partnership with the Emirates Youth Council and governed by the Federal Youth Authority,
the Youth Circle initiative was launched by His Highness Sheikh Mohammed bin Rashid Al
Maktoum, Vice President and Prime Minister of the UAE, and Ruler of Dubai.
In addition to its in-house education and training programs, ADNOC has a number of professional
and leadership development programs aimed at developing young people. These include the
ADNOC Young Leaders Development Program, ADNOC Leadership Program, and Women’s
Leadership Development Programmes.

Tunisia: Zenith Energy signs exclusivity agreement for oil
production asset onshore Tunisia
Zenith Energy has signed an exclusivity agreement to acquire an operated working interest in
an onshore oil production asset in Tunisia.
Tunisia Highlights:
 Daily national oil production of approximately 35,000 bopd
 Safe, democratic jurisdiction
 Fast monetisation of produced oil with favourable fiscal regime
 Attractive domain for junior independent exploration and production companies
The Acquisition currently produces at a rate of approx. 700 barrels of oil per day, generating gross
annual revenues of approx. US$15 million.
Zenith is advanced negotiations with an international oil major to sign an offtake agreement for the
asset's future oil production in order to fund the Acquisition. There are no plans to issue equity
consideration to fund the Acquisition.
The Company intends to complete the
Acquisition by March 31, 2020 subject to
the satisfactory conclusion of currently
ongoing due diligence activities.
Andrea Cattaneo, Chief Executive
Officer, commented:
'It is Zenith's strategy to acquire revenue
generating oil and gas production
assets. The Acquisition represents an
attractive opportunity to enrich our asset
portfolio in a country where
management have significant
experience. We are currently performing
due diligence and visiting the target
asset with a view to completing the
Acquisition by March 31, 2020.
It is important to underline that we have
no plans to issue equity to fund the
Acquisition or its immediate
development following completion.'

UK: BP, Eni, Equinor, Shell and Total form consortium to
develop the Net Zero Teesside project …Source: OGCI
BP, Eni, Equinor, Shell and Total assume leadership of the Net Zero Teesside project, with BP as
operator, transitioning the project from OGCI Climate Investments
Net Zero Teesside to announce MoUs with 3 existing industrial partners to decarbonise local
industry at the official launch event held in Middlesbrough
An extensive impact assessment on the construction phase of the project estimates an annual gross
benefit of up to £450 million for the Teesside region and the support of up to 5,500 direct jobs
OGCI Climate Investments – the USD1B+ investment fund of The Oil and Gas Climate Initiative –
has announced, in Teesside, UK, the formation of a consortium of OGCI members – BP, Eni,
Equinor, Shell and Total, with BP as operator – to accelerate the development of the Net Zero
Teesside project, previously known as the Clean Gas Project.
The partners bring global experience of carbon capture, utilisation and storage technology and are
committed to working closely with the UK government and local stakeholders, including the Tees
Valley Mayor and Combined Authority, to develop the Net Zero Teesside project to deliver the UK’s
first zero carbon cluster. With the right government support the project has an ambitious yet
achievable potential start-up date of the mid-2020s.
The project will decarbonise local industry by building a transportation and storage system to gather
industrial CO2, compress it and store it safely in a reservoir under the North Sea. The transportation
and storage infrastructure will encourage new investment in the region from industries that wish to
store or use CO2.
In addition, a combined cycle gas turbine (CCGT) facility with carbon capture technology will
provide low carbon power as a complement to renewable energy sources and underpin the
investment in the infrastructure.
Pratima Rangarajan, CEO of OGCI Climate Investments, said:
'Net Zero Teesside is a demonstration of OGCI’s commitment to accelerating CCUS on a global
scale. It’s the anchor project, first ideated at the UK Energy Technologies Institute (ETI), developed
into an industrial carbon cluster within OGCI Climate Investments and now, the first hub within
OGCI’s CCUS Kickstarter initiative. This transfer of ownership to the OGCI consortium is proof of
how OGCI’s initiative is successfully supporting emerging hubs.'
Andy Lane, Managing Director of Net Zero Teesside, commented:
'Its advantageous location, advanced planning stage, the expertise of our world class project
partners and government support for decarbonisation in the UK mean Net Zero Teesside is uniquely
positioned to become the UK’s first decarbonised cluster. The formation of such a powerful

partnership led by BP demonstrates the industry’s commitment to the UK government’s net zero
targets. We’re hugely excited to see Teesside back at the forefront of UK industry and want the
project to progress further.'
Ben Houchen, Tees Valley Mayor, said:
'Net Zero Teesside represents the next step in our ambitions for Teesside, Darlington and Hartlepool
to become a pioneer in clean energy, driving almost half a billion pounds into the regional economy
and boosting the wider UK by £3.2billion.
This world-leading industrial-scale decarbonisation project will safeguard and create 5,500 good
quality, well paid jobs for local people. It will act as a beacon for new technologies and further
investment as other companies are attracted to our area, while helping the UK achieve its clean
energy potential.'
Net Zero Teesside was also scheduled to announce at its official launch event in Middlesbrough on
Friday that it has signed memorandums of understanding (MoUs) with 3 existing industrial partners
demonstrating the strong local commitment to decarbonising existing local industry.
The MOUs support the continued engagement between the parties in evaluating the technical and
commercial case for capture of CO2 from the industrial plant for safe storage.
Attendees at the event
including MPs, policy
makers, business leaders
and local stakeholders will
hear from speakers about
the significant role Net Zero
Teesside will play in helping
the UK reach its net zero
2050 greenhouse gas
emissions target whilst
delivering an annual gross
benefit of up to £450 million
for the Teesside region and
the support of up to 5,500
direct jobs.
Net Zero Teesside would be the first major development to be based on the South Tees
Development Corporation site. The launch event today comes just days after the Tees Valley Mayor
struck a landmark deal to secure the land at the former SSI steelworks site and bring it back into
public ownership, ready for future redevelopment.
ABOUT NET ZERO TEESSIDE:
Net Zero Teesside is a Carbon Capture, Utilisation and Storage (CCUS) project, based in Teesside
in the North East of England. In partnership with local industry and with committed, world class
partners, it aims to fully decarbonise a cluster of carbon-intensive businesses by as early as 2030.
Net Zero Teesside is currently led by OGCI Climate Investments and has direct project support from
five of OGCI’s members: BP, ENI, Equinor, Shell and Total. From the mid 2020s,, the Project plans
to capture up to 6 million tonnes of carbon dioxide emissions each year, equivalent to the annual
energy use of up to 2 million homes in the UK.
To learn more about Net Zero Teesside, please visit www.netzeroteesside.co.uk

NewBase March 02-2020 Khaled Al Awadi
NewBase For discussion or further details on the news below you may contact us on +971504822502 , Dubai , UAE
Oil comes off lows as hopes of OPEC cut, stimulus counter virus gloom
Reuters + NewBase
Oil prices rebounded more than $1 a barrel after earlier hitting multi-year lows on Monday, as hopes
of a deeper cut in output by OPEC and stimulus from central banks countered worries about damage
to demand from the coronavirus outbreak.
Brent crude LCOc1 was at $51.36 a barrel, up $1.69 or 3.4%, by 1002 GMT, off $48.40, the lowest
since July 2017. Across the Atlantic, U.S. West Texas Intermediate crude CLc1 hit a 14-month
low of $43.32, before recovering to $46.11, up $1.35, or 3%.
Oil price special
coverage

Both marked their first gain after six sessions of losses amid virus worries. The coronavirus, which
originated in China, has killed nearly 3,000 and roiled global markets as investors brace for a steep
knock to world growth. Equities marked their biggest rout since the 2008 financial crisis last week.
Dragging on oil prices earlier in the day was data unveiled over the weekend by China, the world’s
top energy consumer.
Factory activity in the country shrank at the fastest pace ever in February, underscoring the colossal
damage from the outbreak on its economy.
“On the one hand, it’s pretty negative on worldwide crude oil and product demand,” said Lachlan
Shaw, head of commodity research at the National Australia Bank.
But then there is news Saudi Arabia is pushing for a million barrels per day cut to be agreed this
week, while central banks are increasingly signalling an appetite to intervene and support markets
by cutting interest rates, he said.
“So it’s a balance and it’s going to be pretty volatile.”
Several key members of the Organization of the Petroleum Exporting Countries (OPEC) are mulling
the additional production cut in the second quarter amid fears the virus outbreak will erode oil
demand. The previous proposal was for an additional output cut of 600,000 bpd.
Oil prices are down more than 20% since the start of the year despite OPEC and its allies including
Russia, a grouping known as OPEC+, curbing oil output by 1.7 million bpd under a deal that runs
to the end of March.
“Inaction by OPEC+ would likely trigger another potentially severe bout of selling,” analysts at Fitch
Solutions have said.
Also, current prices would incentivize Russia to agree to further output cuts although “any cut will
likely be of a short duration, for example, three months, with the barrels brought immediately back
to market thereafter,” Fitch analysts said.
Oil’s Freefall Halted By Hope OPEC And Allies Will Take Action
Expectations the OPEC+ alliance will deepen output cuts put a floor under last week’s 16% plunge
in oil prices, with futures in New York rebounding even as the coronavirus continued to spread
rapidly.
Russia is ready to cooperate to support the world oil market, even though it’s comfortable with
current prices, President Vladimir Putin said Sunday. That acted as a brake on plunging crude prices
after a Chinese manufacturing gauge released over the weekend came in at a record low,
undershooting already weak expectations and highlighting the mounting economic impact of the
virus.
The rebound in oil came amid a broader recovery from last week’s carnage, with Asian stocks rising
and commodities from copper to soybeans showing gains. Still, sharp swings in crude in Asian
trading -- from a loss of 3.2% to a gain of 3.7% -- show the extent to which the virus is roiling markets.

Oil consumption may not grow at all this year for only the fourth time in almost four decades,
according to a growing minority of traders, investors and analysts. While economic stimulus in China
and elsewhere may revive demand in the second half, it’s unlikely to completely make up for the
current hit to consumption. Against this backdrop, OPEC+ meets on Thursday and Friday in Vienna
to decide on the extent of production cuts.
“Oil is on a wild ride today with bigger expectations for OPEC+ to reduce production in its meeting
this week countered by the risk on consumption coming from the coronavirus outbreak,” said
Stephen Innes, chief market strategist at AxiCorp Ltd. But any OPEC+ bounce will likely be short-
lived until the virus starts subsiding, he said.
West Texas Intermediate futures for April delivery rose 3.2% to $46.17 a barrel on the New York
Mercantile Exchange as of 11:49 a.m. in Singapore. Last week’s drop of 16.2% was the biggest
since the height of the global financial crisis in December 2008.
Brent futures for May delivery climbed 3.6% to $51.44 a barrel on the ICE Futures Europe exchange
after losing as much as 2.6% earlier. The global crude benchmark traded at a premium of $5.03 to
WTI for the same month.
Another Chinese purchasing managers’ index fell to 40.3 in February, the lowest since 2004,
according to figures released Monday. That came after the manufacturing PMI reading over the
weekend of 35.7, which compared with analyst expectations for 45. Worldwide deaths from the
coronavirus have now surpassed 3,000, with South Korea, Iran and Italy emerging as hotspots.
Consumption Engine

Global oil demand has only contracted in three years since 1985
Source: BP Statistical Review of World Energy 2019
Putin said the OPEC+ mechanism “has already established itself as an effective tool in ensuring
long-term stability in global energy markets.” The fact that Russia has large financial reserves to
cushion market turbulence “doesn’t eliminate the need for action,” he said. That represents a change
in tone from Moscow, which had previously been cautious on deeper output cuts.
“We think Saudi Arabia will likely be able to rally the rest of the producers for a cut of at least 1
million barrels a day,” Helima Croft, head of global commodity strategy at RBC Capital Markets,
said in a note. Current prices do not work for most of the OPEC+ group and Russia isn’t as price-
agnostic as it endeavors to seem, she said.

NewBase Special Coverage
The Energy world - Special 02- March-2020
Eni announces Long-Term Strategic Plan to 2050 and Action
Plan 2020-2023
Source: Eni
'The strategy we announce today represents a fundamental step for Eni. We will set out the evolution
of our Company in the next 30 years combining the objectives of ongoing development in a fast
changing energy market and a significant reduction in our carbon footprint, a combination
considered impossible by many. We will be the first in the industry to provide a business strategy to
address these issues. Our strategy will rely on the quality of our assets, our technologies and our
competencies.
The principles that guide our journey will remain fixed. The promotion of all UN SDGs is a
fundamental element of our mission as is a strong financial position.
The Eni of the future will therefore be even more sustainable. It will reinforce its role as a global
player in the world of energy with renewables and circular economy activities. These nascent
businesses will develop strongly and be highly connected to our existing businesses.
The production of oil and gas is expected to reach a plateau in 2025 followed by a flexible decline
in the following years mainly for the oil component. The result will be a portfolio that is more balanced
and integrated and will be stronger for its adaptability and competitive shareholder remuneration.

We have quantified our carbon footprint reduction targets giving ourselves a comprehensive method
of calculating emissions, which includes both direct and indirect emissions deriving from the end
use of our products, whether from our own production or purchased from third parties.
Consequently, our targets for reducing our absolute GHG emissions cannot be compared with other
methodologies given the wider scope of emissions considered in our method. We have fixed a target
of an 80% reduction in net GHG emissions of our energy products by 2050, which exceeds the 70%
indicated by the IEA in their SDS scenario which aims to be compatible with the Paris Agreement.
We have designed a strategy that combines economic sustainability with environmental
sustainability and we have done so by defining an action plan based on technologies – existing or
developed in-house - that we know how to implement. This will allow Eni to be a leader in the market
supplying decarbonised energy products and actively contributing to the energy transition process.'
LONG-TERM STRATEGIC PLAN TO 2050 - PRINCIPAL OBJECTIVES
 Upstream production growth at an annual rate of 3.5% up to 2025, subsequent flexible
decline mainly for oil. Gas production by 2050 will make up about 85% of total production.
 Resilient and flexible 3P Reserves: $20/bbl average breakeven, 94% of value realised by
2035 assuming a constant Brent price of $50/bbl. Ability to modulate future investments in
exploration and development to respond to the evolution of the market.
 Sustainable gas production: forest conservation and CO2 capture and storage projects for a
total of over 40 million tons/year by 2050. Electricity production from gas combined with CO2
capture and storage projects will complement renewables power supply.
 Renewables strong growth to over 55 GW by 2050. Developments mainly in OECD countries
to supply energy to our clients, with retail customers expected to grow to over 20 million by
2050
 Refining: gradual conversion of Italian sites by focusing on new technologies for the
production of decarbonised products from the recycling of waste materials. Increase in bio-

refining capacity to 5 million tonnes per year, palm-oil free from 2023, 7 years ahead of the
EU ban.
 Marketing: transformation from traditional petrol station to sales service station distributing
only new generation sustainable fuels and providing differentiated services.
 Chemicals: gradual conversion of existing sites to produce more specialties and utilising
more bio and plastic recycling technologies.
 Carbon footprint: developed methodology, reviewed and verified by third parties, for the
comprehensive measurement of emissions. On this basis, fixed 2050 reduction targets of
80% of absolute emissions (well above the 70% threshold indicated by the IEA in the
Sustainable Development Scenario that tracks the reduction of emissions compatible with
the Paris Agreement) and of 55% on emission intensity.
LONG-TERM STRATEGIC PLAN TO 2050 – PRINCIPLES, TARGETS AND STRATEGY
After a period of profound transformation, which has allowed the group to grow and diversify its
portfolio, whilst strengthening its financial structure, Eni is now ready for a new phase of evolution
of its business model, strongly oriented towards creating value over the long-term that combines
economic and financial sustainability with environmental sustainability.
This evolution will, once again, be achieved by leveraging our know-how, proprietary technologies,
innovation and the flexibility and resilience of our assets, which will allow us to seize new
opportunities for development and efficiency, as well as further improve workplace safety.
The founding principles that inspire and guide the Plan's activities and actions are to:
 actively contribute to the achievement of all 17 UN SDGs, which are at the heart of Eni's
mission;
 maximize the integration of the portfolio along the entire value chain, from production to end-
customers;
 ensure rigorous financial discipline in investment policies and a solid capital structure for the
group to support cash generation;
 maintain a progressive shareholder remuneration policy.

On the basis of these principles, operational strategies and objectives have been defined for
2035 and 2050, which outline the evolutionary and integrated path of the individual businesses.
The speed of evolution and the relative contribution of each business will depend on market trends,
technological developments and legislation.
The evolution of the business portfolio enables Eni to reach the objectives of reducing its carbon
footprint, which are considered fixed.
In particular, Eni will pursue a strategy that aims to:
 obtain by 2050 an 80% reduction in net scope 1, 2 and 3 emissions, with reference to the
entire life-cycle of the energy products sold and a 55% reduction in emission intensity
compared to 2018;
 reinforce its role as a global player in the energy market, leveraging an increasingly balanced
and integrated portfolio of activities;
 optimise the flexibility of its business portfolio, so as to respond to external market factors
and position the company to seize opportunities;
 generate value for its shareholders by maintaining the current progressive remuneration
policy.
The following decarbonisation targets confirm and build on previously announced
ones:
 net-zero carbon footprint by 2030 for scope 1 and 2 emissions from upstream
activities;
 net-zero carbon footprint for scope 1 and 2 emissions from the Eni group by 2040.
This evolutionary strategy will be reflected, in the coming months, in a new
organizational structure, whilst management’s long-term incentives have already
been modified introducing a new ESG objective with a weight of 35%.
Eni, today, publishes on its website the principles that it uses to define its position
on climate change themes. Eni also evaluates its participation in business
associations in light of their alignment with these principles.

DIVISIONAL BREAKDOWN – LONG-TERM PLAN TO 2050 & ACTION PLAN 2020-2023
UPSTREAM
The principal strategic guidelines in the medium/long-term are to:
 maintain a resilient portfolio of conventional assets that is characterised by: low
breakeven, accelerated time to market and limited exposure beyond the medium term.
 Enhance portfolio flexibility with a confirmed 3.5% production CAGR to 2025, at which
point production will plateau followed by a flexible decreasing trend mainly in oil
production. The gas share of production is expected to reach 60% by 2030 and around
85% in 2050.
 Confirm the previously announced GHG reduction targets.
In line with the medium-long term strategy, the 2020-2023 action plan has the
following objectives:
 An enhanced exploration portfolio that targets the discovery of 2.5 Bln boe contributing
to geographical diversification by leveraging:
o operatorship and high working interest in exploration permits in order to take
advantage of the "dual exploration model" to monetize discoveries quickly;
o exploration focus on near-field and proven basins;
o selected initiatives on frontier basins;
 Cash generation growth with a cumulative organic free cash flow in 2020-2023 of over
€25 billion. This objective will be achieved with:

o production growth at an average annual rate of 3.5% in the period 2019-2023
thanks to the contribution of projects already started or that will start up in the
four-year plan;
o further development of initiatives integrated with Gas & Power for enhancing the
value of equity gas;
o stronger project development model based on phasing and design-to-cost in
order to reduce the execution risk and financial exposure;
o efficiency and operational continuity optimization;
 digital transformation to further improve workplace safety and asset integrity.
RENEWABLES
The main medium/long-term strategic guidelines have the following objectives:
 progressive expansion of installed global capacity to over 55GW by 2050;
 expansion to new areas based on where we have an existing or targeted customer base in
order to maximize value from an integrated model;
 further development in areas where Eni already operates;
In line with the medium/long-term strategies, the 2020-23 Action Plan provides
for:
 installed capacity of 3GW by 2023 and 5GW by 2025;
 investments of €2.6 billion over the plan period.

GAS & POWER
The main medium/long-term strategic guidelines are as follows:
 expansion of retail activities to a customer base of over 20 million by 2050;
 business growth in combination with the expansion of renewables and bio-methane;
 complete transition to bio and renewable products by 2050;
 enhanced offer to customers with supply of new generation services;
 Midstream Gas & Power market access role strengthened to include all non-oil commodities;
 Midstream Gas & Power activities focused on marketing of equity products;
 Gas power plants integrated with CO2 capture and storage capacity.
In line with the medium-long term strategy, the 2020-2023 Action Plan has the
 expected growth in retail customers to approximately 11 million by 2023, of which over 4
million in power;
 development of new products and focus on non-commodity services;
 continuation of restructuring of gas supply portfolio and reduction of logistics costs, through
optimization actions and contract renegotiation;
 growth of LNG portfolio through development of new markets and integration with Upstream
to enhance value of equity gas. Portfolio of expected contracted LNG volumes to reach 16
MTPA by 2025.

These actions will generate a cumulative organic free cash flow equal to €2.1 billion
in the period 2020-2023.
REFINING & MARKETING
 expansion of bio-refining capacity to over 5 million tonnes per year, supplied exclusively with
2nd and 3rd generation "palm-oil free" feedstocks, in target areas such as the Far and Middle
East, Europe for biojet fuel production and the United States;
 progressive conversion of traditional Italian refining sites through new plants for production
of hydrogen, methanol, biomethane and products from recycling of waste materials;
 in the long-term, the Ruwais refinery in the United Arab Emirates will be the only traditional
refinery in operation, capitalising on its optimal location and operational efficiency;
 gradual evolution of product mix sold in retail outlets, reaching 100% decarbonised products
by 2050;
 Increase of additional services offer to improve margins and enhance customer loyalty.
 consolidation and integration of traditional refining activities with Ruwais refinery reaching full
potential including contribution from trading activities;
 continued diversification through investments in biorefining. Our bioprocessing capacity will
be 1 million tonnes by 2023 and palm-oil free;

 development of circular economy initiatives for the production of hydrogen and methanol from
the recycling of waste materials and from castor oil, both new feedstocks for biorefining;
 European marketing consolidation favouring high-margin segments and further development
of non-oil services in retail;
 increased offer of alternative fuels and development of sustainable mobility.
These actions will make it possible to achieve a cumulative organic free cash flow of
€ 2.6 billion over the period 2020-2023.
CHEMICALS
 specialization in the production of high-quality and high-performance polymers;
 development and integration of chemistry from renewables and chemical and mechanical
recycling;
 transformation via pyrolysis of non-recyclable plastics into polymers with identical
characteristics to those produced by hydrocarbons;
 establishment of integrated platform to maximize synergies with refining in gasification
processes involving all types of plasmix.
 rebalance the ethylene-polyethylene chain integrated with mechanical and chemical
recycling and the recovery of cracking efficiency;

 gradual shift of polymers portfolio towards products with greater added value and extension
of downstream chain towards compounding to reduce margin volatility;
 development of chemicals from renewables through new processes and products;
 progressive reduction of GHG emissions, increasing energy efficiency and feedstock
flexibility;
 international growth in synergy with Eni’s other businesses.
These actions will allow for a cumulative organic operating cash flow of €0.4 billion.
CARBON FOOTPRINT
Eni's strategy announced today is critical in driving a reduction in the group's carbon footprint.
Eni has developed a rigorous methodology for the comprehensive measurement of GHG
emissions. This method considers scope 1, 2 and 3 emissions, both in absolute and relative
terms, related to energy products sold, whether derived from our own or purchased production.
This distinctive approach is more comprehensive than current emissions standards and provides
an integrated view of emissions.
The results of the industrial strategy lead to a reduction of 80% in absolute emissions by 2050
(well above the 70% threshold indicated by the IEA in their SDS scenario compatible with the
targets set by the Paris Agreement) and a reduction of 55% in emissions intensity.
The methodology was reviewed, independently, by experts from Imperial College London (via
Imperial Consultants) whilst the results of its application were verified by the independent
certification company RINA.

The actions underway will contribute to achieving the following results:
 progressive reduction of hydrocarbons production, with rising proportion of gas to oil;
 focus on gas equity marketing combined with projects for the capture and storage of CO2
and the progressive reduction of non-equity gas sales;
 conversion of European refineries into bioplants, for the production of hydrogen and for the
recycling of waste materials;
 primary and secondary forest conservation projects to offset CO2 emissions exceeding 30
million tons per year by 2050;
 projects to capture CO2 of over 10 million tons per year by 2050, with a first project under
study for the Ravenna hub in Italy, where it will be possible to capture CO2 from neighbouring
industrial sites and gas-powered electricity generation;
 renewables installed capacity exceeding 55 GW by 2050;
 growth of retail clients to over 20 million by 2050.
Eni also confirms its Upstream net carbon neutrality target for scope 1 and 2
emissions by 2030 and announces a new net carbon neutrality for scope 1 and 2
emissions for the entire Eni group by 2040.
KEY FINANCIAL DATA – ACTION PLAN 2020-2023
The four-year investment plan focuses on high-value, short-payback projects and
provides for investments of around €32 billion by 2023. It is characterized by a high
level of flexibility with around 60% of investments not yet committed in 2022-23.
The upstream investment plan, which represents 74% of the total, is highly
diversified in terms of geographical footprint, thanks to the developments in the
Middle East, Africa, Norway and Mexico.
Eni's investment programme is high-value and resilient even in a challenging scenario. The current

portfolio of upstream projects in execution has a breakeven price of $23 per barrel (vs. $25/bbl in
the previous plan) and an overall IRR of approximately 25%. These projects remain competitive
even in a low-carbon scenario. Adopting the IEA SDS scenario, which provides for the global
application of a high cost for direct CO2 emissions, the overall IRR would be reduced by 0.7
percentage points.
In line with these medium and long-term objectives as well as the company's decarbonisation
process, Eni plans investments in renewables, energy efficiency, circular economy and offsetting of
flaring of €4 billion, an increase of 30% compared to the previous plan. The weight of these
investments on the total 2023 capex is 20%.
Overall, cumulative free cash flow over the plan will be €23 billion.
Assuming a constant scenario (Brent at $60/bbl and gas at the Italian PSV hub at € 150/kcm), Eni
expects a strong growth in cash generation for the next four years. In particular, by 2023, operating
cash flow will grow by more than €3 billion compared to 2019 thanks to the solid contribution of all
its businesses.
Eni also expects an improvement in post-dividend cash neutrality to $45 per barrel in 2023, down
by more than $10 a barrel compared to the current level.
Based on the results achieved in 2019 and the actions envisaged over the current plan, Eni confirms
its shareholder remuneration policy, and for 2020 provides:
 a dividend of €0.89 per share, an increase of 3.5%; and
 a buyback of €400 million.

NewBase For discussion or further details on the news below you may contact us on +971504822502, Dubai, UAE
The Editor :”Khaled Al Awadi” Your partner in Energy Services
NewBase energy news is produced daily (Sunday to Thursday) and
sponsored by Hawk Energy Service – Dubai, UAE.
For additional free subscription emails please contact Hawk
Energy
Khaled Malallah Al Awadi,
Energy Consultant
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME member since 1995
Hawk Energy member 2010
www.linkedin.com/in/khaled-al-awadi-38b995b
Mobile: +971504822502
khdmohd@hawkenergy.net or khdmohd@hotmail.com
Khaled Al Awadi is a UAE National with a total of 28 years of experience in
the Oil & Gas sector. Currently working as Technical Affairs Specialist for
Emirates General Petroleum Corp. “Emarat“ with external voluntary Energy
consultation for the GCC area via Hawk Energy Service as a UAE operations
base , Most of the experience were spent as the Gas Operations Manager in
Emarat , responsible for Emarat Gas Pipeline Network Facility & gas
compressor stations . Through the years, he has developed great experiences
in the designing & constructing of gas pipelines, gas metering & regulating
stations and in the engineering of supply routes. Many years were spent
drafting, & compiling gas transportation, operation & maintenance agreements along with many
MOUs for the local authorities. He has become a reference for many of the Oil & Gas Conferences
held in the UAE and Energy program broadcasted internationally, via GCC leading satellite
Channels.
NewBase : For discussion or further details on the news above you may contact us on +971504822502 , Dubai , UAE
NewBase 2020 K. Al Awadi

For Your Recruitments needs and Top Talents, please seek our approved agents below

Newbase 02 march 2020 energynewsissue 1321 by khaledalawadi compressed-compressed_compressed

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Newbase 02 march 2020 energynewsissue 1321 by khaledalawadi compressed-compressed_compressed

Similar to Newbase 02 march 2020 energynewsissue 1321 by khaledalawadi compressed-compressed_compressed (20)

More from Khaled Al Awadi

More from Khaled Al Awadi (20)

Recently uploaded

Recently uploaded (20)

Newbase 02 march 2020 energynewsissue 1321 by khaledalawadi compressed-compressed_compressed