In March 2013, the Italian government approved the National Energy Strategy (NES), a paper which sets out the main goals and the top priorities to be pursued in the coming years to support the growth of the Italian economic system and the energy market. According to NES, Italy has significant oil and gas reserves (i.e.: the largest in Europe after the Nordic countries) and development of the hydrocarbon industry is one of Italian goal/top priorities. This presentation includes a quick outlook and summary of the main content of the NES with respect to the upstream oil&gas market .

1. A workshop of Annamaria Pinzuti
Senior Associate – Ashurst LLP
Italian
Upstream Oil
Market:
challenges and
opportunities
1

2. 2
Background

The energy sector plays a fundamental role in the growth of
the national economy – in particular it works as:




driver of the national growth: competiveness of the energy market
(e.g. from pricing/offer/costs point of view) is a key factor for the
development of national macro-economic system
Interesting market: investors, sponsors and banks look at the Italian
energy market as “high potential” market, especially in relation to
the green economy and gas industry
For this purpose, the Italian government approved the
National Energy Strategy (NES) in March 2013, a paper which
sets out clearly the main goals and the top priorities of action
to be pursued in the coming years to support the grouth of the
Italian economic system and the energy market
This brief presentation explains the opportunities and
challenges set out by NES in relation to the oil & gas upstream
market in Italy

3. 3
Upstream in Italy?



Italy is heavily dependent on fossil fuel
imports, with a negative energy trade
balance of €62 billion (Ministry of Economic
Development (MED) data)
However, according to MED, Italy has
significant oil and gas reserves, i.e.: the largest
in Europe after the Nordic countries
Development of the hydrocarbon industry is
one of the goal/top priorities of NES

4. 4
Oil & gas upstream in Italy
•
According to Nes:
•
•
•
In Italy there are potential
resources amounting to 700
MTOE of hydrocarbons
If we exclude the Nordic
countries, with their significant
off-shore reserves, Italy’s
proven reserves are the most
significant of continental
Europe.
Res5 areas in Italy offer a high
development potential: the
Po Valley, the Upper Adriatic,
the Abruzzo Region, Basilicata
and the Strait of Sicily.
•
According to Nes:
•
•
•
In Italy there are potential
resources amounting to 700
MTOE of hydrocarbons
If we exclude the Nordic
countries, with their significant
off-shore reserves, Italy’s
proven reserves are the most
significant of continental
Europe.
Reserves are concentrated in
5 areas of Italy, i.e. the Po
Valley, the Upper Adriatic,
the Abruzzo Region,
Basilicata and the Strait of
Sicily.

5. 5
2020 goals for the
upstream(according to NES)
NES provides for the following goals to be
achievied within 2020:
 Increase production by about 24 million
boe/year for gas and 57 boe/year for oil
increasing offer in the market from ~7% to
~14%
 Attract new investments of about €15 billion
 25,000 new jobs
 annual saving in energy expenditure of about
€5 billion (arising of reduction in imports)

6. 6
Road map to achieve the
2020 goals (according to NES)
1. Approving a new legal framework:
 To develop offshore upstream projects ensuring at the same time the
safeguard of environment (in line with European Directives on the
matter)
 To simplify the administrative procedures and make them easier and
faster in line with European standards (e.g. by adopting a single
authorization model in connection with exploration and production
activity)
 To better sustain local content strategies - part of the increased
revenues from extracting hydrocarbons will be used to develop
infrastructures and employment growth projects in the areas where
the production plants are established and in neighboring Regions
 To provide new measures to increase, develop and improve
production of natural gas
2. Supporting the industry on local basis: improvement of Italian
technological/industrial energy industry, e.g. developing infrastructure and services and
creating synergies with territories

7. 7
Next?



In Italy, there are important upstream projects
under development
The list of the oil & gas projects authorised is
included also at:
http://unmig.sviluppoeconomico.gov.it/home
.asp
Let’s see how the strategies set out in NES will
be implemented to better support the
business and if the 2020 goals for the
upstream will be achieved… I’LL KEEP YOU
UPDATED!!

8. 8
This presentation is made by
Annamaria Pinzuti - Senior associate – Ashurst LPP
Mrs. Pinzuti is a lawyer with more than 10 years of experience.
Mrs. Pinzuti’ practice is primarily devoted to the corporate area,
having a solid experience in acquisitions and divestitures (crossborder and domestic, public and private), joint ventures, mergers,
spin-off, corporate governance matters, shareholders agreements
and by-laws. Since 2005, Mrs. Pinzuti focused her practice also on
the acquisition, development, operation and maintenance of
complex energy and infrastructure projects, including oil, power,
renewable industry as well as gas and LNG business and PPP
projects.
Mrs. Pinzuti advised sponsors, private equity funds and banks in some of the
most important transactions of the energy market in Italy, such as:




The acquisition of the joint control over Edison S.p.A. by EdF
The development by BG Group of the LNG Terminal in Brindisi
The financial transaction whereby F2i and AXA Private Equity acquired Gaz de
France’s Italian gas distribution grid (the Deal won the award "Global M&A Deal of
the Year" by PFI Award 2011).
The acquisition by Mitsui of a stake in Tempa Rossa Project (one of the largest
upstream oil & gas project in Europe) and tadivising the client in the legal aspects of
the development of such Project.
Some further information on this presentation and disclaimer
Contents of this presentation are mainly based on the official data set out by the national energy strategy, that you can also review in English at the website link:
http://www.gse.it/it/Gas%20e%20servizi%20energetici/GSE_Doc_AsteCO2/CO2%20Eng/20121115_SEN-EN.pdf. The material in this presentation has been prepared by Annamaria
Pinzuti. This information is given in summary form and does not purport to be complete or correct or update. Information in this presentation should not be considered as advice or
a recommendation to invest in the oil&gas industry. The author assumes no guarantee and responsibility for the current, correct and complete status or quality of the information
presented. Liability claims against the author, which refer to material or immaterial damages that arise through the use or non-use of the information presented or the use of
incorrect and incomplete information, are generally waived by any user of this presentation. The author explicitly retains the right to change, add, delete and to temporarily or
permanently retract the publication of the presentation in part or in whole without warning. This presentation is not and cannot be construed as a legal, financial or otherwise
advice.