DRAWING UP THE MASTER PLAN

Abu Dhabi 2020 | OIL & GAS | B2B

Its vast breadth of knowledge and experience in markets across Central Asia, Europe, and the Middle East have given ENI the expertise to develop the Ghasha Concession.

Fuad Krekshi
FUAD KREKSHI
Executive Vice President - Middle East Region
ENI
Pietro Guarnieri
PIETRO GUARNIERI
Managing Director, Abu Dhabi & Deputy EVP of Middle East Region
ENI

What resources and expertise does ENI bring to Abu Dhabi?

PIETRO GUARNIERI ENI plans to utilize its expertise in exploration, project management, and operations. In recent years we have demonstrated our capabilities by discovering major gas fields and de-veloped these based on our expertise in project management. This has happened largely thanks to our new project management model, which allows us to reduce the time to market. It also starts the design and development activities once the exploration phase begins, allowing teams to work between exploration, reservoirs, and engineering. Eni under-stands that ADNOC expects to work with a proactive partner that can share its know-how in the overall interest of the JVs. Eni has found an excellent opportu-nity to increase its production through the acquisition of a participation interest in the ADNOC Offshore Concession and to participate as a critical player in the Ghasha Concession Sour Gas Development Project. Through this, we can build upon our expertise from the recently awarded exploration blocks. Overall, different synergies have been created be-tween Eni and the other partners. ENI has historically been present in Africa for a number of decades, while in recent months it has deepened its presence in the Middle East.

What considerations have guided ENI's Middle East development strategy?

FUAD KREKSHI The Middle East is a region with high potential—it has almost half of the of the world's proven reserves, which are characterized by low developing and operating cost. The recent growth in the Middle East represents a strategic achievement in terms of geo-graphical diversification and a balanced portfolio. The key drivers that have characterized this impressive expansion in the region have been the deployment of our proprietary technologies and our operational integrated model all along the value chain. We have signed 16 agreements, from exploration to downstream, entering producing assets with high potential growth and discovering giant fields to be developed and areas to be explored, and working on one of the largest refineries in the world. Overall, the region will contribute significantly to the company's production profile over the next five to seven years.

What have been some of the synergies created between ENI and its concession partners across shared operating environments?

PG The main synergies cover different aspects of the oil and gas business value chain, starting from HSE to exploration via drilling and project management. ENI is committed to building a low-car-bon future through an integrated energy mix for which, together with renewables, natural gas will be a pillar. This fits perfectly with the strategy of Abu Dhabi to develop gas self-sufficiency. Abu Dhabi made already the right choice in deciding to develop the Ghasha Concession reservoir, so the broader partnership with ENI reveals the strong commitment of Abu Dhabi to achieving this target. ADNOC should maintain its role as a driver in gas industries opening to the IOCs to participate in the development of this industry. Indeed, when it comes to the factors that drove ENI's acquisition of a 20% equity interest in ADNOC refining, this was one piece of our broader strategy of developing business in the UAE and making ENI's overall portfolio more geographically diversified, more balanced in its value chain, more efficient, and more resilient to cope with market volatility. This operation perfectly represents all these elements, and also means a 35% increase in our global refining capacity. This acquisition will allow ENI to further strengthen the resilience of its refining business. When it comes to scale of growth and opportunity, the ADNOC Refining assets, of which Ruwais is the world's fourth-largest single site refinery, are well configured for future market demands, geographically and logistically advantaged, and provide an ideal platform for further domestic and international growth. Operational improvements and investments to increase capacity and feedstock flexibility will also enhance utilization and optimize the production mix, bringing significant growth to ADNOC Refining in its margins over the next several years. Finally, ENI works constantly to improve costs and capex and sustain production. In particular, it continues to improve efficiency through a continuous engagement with contractors and the supply chain. From the first phase of projects onward, we deeply analyze the design criteria, making asset integrity a key element to sustain production and value.

What do your Sharjah onshore and Ras Al Khaimah offshore agreements say about ENI's organic growth potential in the UAE? Furthermore, what are your expectations for these projects once they are executed?

FD Sharjah and Ras al Khaimah are two interesting opportunities where significant exploration potential may still be found. The Sharjah project has all the main characteristics to allow SNOC and ENI to achieve an important target, i.e. being onshore with a high impact prospect close to a treatment plant. The Sharjah National Oil Company (SNOC) and ENI are committed to developing the field with a challenging time to mar-ket. In Ras Al Khaimah, together with our partner RAK Gas, we are carrying out comprehensive geological and geo-physical studies to evaluate using state-of-the-art proprietary technologies and the potential of offshore Block A. In Abu Dhabi, we are carrying out studies on the offshore exploration blocks awarded at the last bid round; in addition, we are working closely with ADNOC and Ghasha Concession partners on the definition of a development plan for a sour gas project. Regarding exploration, we are also progressing with plans for wells to be drilled in 1Q2020 offshore in Oman, Bahrain, and Lebanon. And in Iraq, since 2010, we are have been operating, through a technical service contract, the Zubair Field, which is now producing about 500,000bpd.