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The Upstream
champions

Upstream
phase 1
Exploration
Upstream

In the oil cycle, upstream activities refer to the acquisition of exploitation rights, exploration (i.e. geological studies and geophysical surveys), development (construction of extraction sites) and production (extraction). All activities that are carried out at the top of the chain, i.e. before transportation and marketing.

Upstream phase 2   Drilling / Video: Financial Times, Fossil fuel hope found in Egypt
Upstream phase 3   Production

eni's
upstream
model

Eni’s exploration and production (“upstream”) model is based on key elements such as exploration, which offers a large resource base at significantly lower costs, ensuring flexibility in the short term and driving growth in the long term, the exploration strategy is led by the rapidity of time to market and cost optimisation in converting resources into production. This approach ensures a more rapid development, which overlaps with the exploration phases, accelerating the entire process. Since 2008 Eni has discovered 13 billion barrels of resources, 2.5 times the volume of the equity production of the same period. All discoveries are conventional and common in 10 different basins.

At least every 3 years, the company discovered a “giant” or “super-giant” fields and the average cost of the exploration is 1.2$ per barrel as the 20% of the average cost of the sector. The dual exploration model is a structural element of the Eni’s strategy that makes it possible to generate cash and value in advance from exploration activities, and extracting first oil before others. At the same time, thanks to this formula, in the last 4 years the company has gained 9 billion dollar, a is much higher value than the exploration costs. At the same time, thanks to these disposals, Eni has cut down the investments and the financial exposure.

first oil

First oil is the first drop of hydrocarbon extracted from a production well. The strong synergies between Exploration and Development ensure organic growth in production, thanks to the rapid extraction and marketing of resources

WE EXPLORE, DISCOVER AND PRODUCE IN #RECORD TIME

The story we want tell is obout of 7 projects with one thing in common: having gone into production in record time. Projects implemented, or being implemented, thanks to significant savings in terms of both time and costs.

1
INTEGRATION BETWEEN EXPLORATION AND DEVELOPMENT

It is important to work in parallel. Already during the exploration phase it is possible to gather and maximise the necessary information to improve the engineering of the project and reduce the time to get to the final investment decision (FID).

All this is possible thanks to a combination of factors: technological elements and essential skills for the management of uncertainty.

explore

Detail

The green data center

Ferrera Erbognone

Eni’s Green Data Centre, one of the most powerful in the world, is located in the heart of the Po Valley, in Ferrera Erbognone, From the outside it looks like a huge bunker; inside there is an efficient and sustainable computing system able to perform millions of billions of operations per second. This IT citadel hosts the HPC (High Performance Computing) supercomputer that processes seismic data and simulates hydrocarbon reserves. From the combination of geophysics and computer science, “seismic imaging” and HPC (along with the extraordinary talent of Eni’s exploration team), has been behind all of the most recent discoveries made by the company. Zohr, but not only...

The Green Data Centre is close to an EniPower power plant, which provides the energy required (redundant) by the Data Centre. In this way the typical dispersion of energy caused by geographical transportation (of 5-6%, according to the Energy Authority) has been eliminated and it has been guaranteed an overall control (of production and consumption) is completely within the group.

3d room Bolgiano - San Donato Milanese

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2
DEVELOPMENT IN PHASES

This makes it easier to organise the production infrastructure. Projects are carried out step by step with the use of existing systems to anticipate cash flow and collect useful information for the definition of the final development plan.

This approach was applied in the development of the Marine XII, Nooros, OCTP and West Hub productiion fields.

explore

OCTP

OCTP (Offshore Cape Three Points) is located 60 km from the coast. It includes volumes in place of around 500 million barrels of oil. Oil and non-associated gas of about 41 billion cubic metres. 18 underwater wells connected to the FPSO “John Agyekum Kufuor”. OCTP will be connected to the mainland by a 63 km-long pipeline.

15/06

The EAST HUB project is located in Block 15/06 in deep offshore Angola. Production began 5 months ahead of schedule. With the start of East Hub overall production this year will be 150,000 boe/d (barrels of oil equivalent per day).

The WEST HUB project, in production since the end of 2014, is the first activity operated by Eni in the country. The development plan foresees the connection of the numerous discoveries to the floating production and storage unit FPSO N’Goma. The project includes the development of 5 fields with the connection of 30 wells.

Nené Marine

Production started on 29 December 2014, one year ahead of schedule. First phase production has amounted to 7,500 boe/d, which is sent to the Zatchi production platform via a 17 km-long subsea pipeline. The complete development of Nene Marine will occur in several phases, involving the drilling of over 30 wells, and a production plateau of over 140,000 boe/day.

zohr

It is the largest natural gas field ever discovered in the Mediterranean. The authorisation process was completed in February 2016. Production start-up is scheduled for the end of 2017, just two years after discovery.

nooros

20 million cubic metres of gas per day, the equivalent of 128,000 boe per day, of which 67,000 net to Eni, is the production level achieved by the Nooros field just 13 months after its discovery. A record result in terms of time-to-market.

jangkrik

The activities here foresee the drilling of production wells connected to a Floating Production Unit for the treatment of natural gas and condensates, as well as the construction of transport facilities. Start-up is expected in 2017.

fid

Final Investment decision.

Appraisal well

Appraisal well and confirmation. Well or wells which are drilled after the field’s discovery well, to confirm the extent and depth, ascertained from the seismic survey. This provides a better evaluation of the volume of mineralised rock and consequently the quantity of the contained and recoverable hydrocarbons. On the basis of these assessments it is possible to determine the economic efficiency of a reservoir and then plan the drilling of development wells.

Detail

octp

Ghana

OCTP (Offshore Cape Three Points) is an integrated offshore development project which start-up is scheduled for June 2017, less than 3 years from the final investment decision (December 2014). It is located in deep waters about 60 kilometres off the coast of the western region of Ghana. The project integrates in 2 phases the development of oil deposits, with volumes in place of around 500 million barrels of oil and non-associated gas fields with around 41 billion cubic meters of gas that will be entirely devoted to the domestic market for the production of electricity.

The oil field was discovered after the gas fields and deeper down, thanks to the improvements obtained with advanced seismic imaging. The subsequent development of the oil is based on just 2 discovery and appraisal wells thanks to advanced seismic and reservoir modelling technologies. Thanks to the 23 subsea wells linked to the FPSO “John Agyekum Kufuor” and a gas pipeline that will connect to the mainland, the OCTP Cape Three Points project will be able to supply gas to the power plants of Ghana for more than 15 years, making a significant contribution to the country’s energy needs and economic development.

octp

41 billion m3


500 million boe

The FPSO Kufuor is named afterJohn Agyekum Kufuor, the President of Ghana who gave new impetus to the exploration sector and in 2001 issued a license for the field where the vessel will operate from April 2017. Built in Singapore as the result of collaboration between Eni, the Ghana National Petroleum Corporation, Vitol and Yinson in the record time of just 24 months: Eni’s best result and a benchmark for the sector. From Singapore, it will travel to offshore Ghana where it is set to produce oil. 333 metres long and 58 metres wide, it weighs 69,000 tons and is designed to minimise the environmental impact. Part of the gas extracted from the fields will be used on the vessel itself, making it independent in terms of its energy requirement.

The complexity of this vessel is related to the dual-track production and treatment of hydrocarbons. It will be able to treat both oil and gas at the same time, coming from two close but different fields, separating the associated gas from the oil, and eliminating all traces of liquid from the gas. Only physical treatments will be made on board of the vessel - status changes, pressure, temperature - to ensure that both the oil and gas can be transported: the oil will then be downloaded onto shuttle tankers, while the gas will be exported through a 70 km-long undersea pipeline.

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3
SYNERGIES WITH EXISTING ASSETS

The strategy of conduction exploration activities in the vicinity of fields in production (called “near field exploration”) and close to going into production (“incremental exploration”) enables Eni to maximise synergies with existing and future plant and infrastructure.

explore

Detail

block 15/06 - west hub & east hub

Angola

The West Hub Development Project includes the development of the Sangos, Cinguvu, Mpungi, Mpungi North, Ochigufu and Vandumbu fields, at water depths ranging from 1,000 to 1,500 metres. The first development phase led to the the start of production at the first discoveries at the Sangos and Cinguvu fields, followed by the second phase with the start of production at the Mpungi field, which, in turn, will be followed by a third phase for the Ochigufu and Vandumbu fields. The wells are arranged in groups and connected to the FPSO (Floating Production Storage and Offloading Unit) N’Goma, which has a processing capacity of 100,000 barrels of oil a day. In December 2014, production started at the West Hub (Eni 35%, operator), the first project in production operated by Eni in Angola, with an initial level of 45 kb of oil per day from the FPSO N'Goma. The development of the project took place in just 44 months from the declaration of a commercial discovery and is a top of the industry result for deepwater developments.

With the start-up of the East Hub Project, in February 2017, five months ahead of the development project schedule, and production from the West Hub fields, total production from Block 15/06 in 2017 will reach a peak of 150,000 barrels of oil equivalent per day.

block 15/06

136,000 boe

4,500 people involved

The fields reach a 2,700 mt water depth

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4
THE CONVERSION OF UNUSED ASSETS

As happened with a platform from the Gulf of Mexico relocated to the Marine XII field in Congo, the FPSOs of the three West Hub, East Hub and OCTP projects were built on the base of fully converted oil tankers, with considerable savings in cost and time compared with the construction of a new FPSO.

explore

Detail

marine XII

Congo

The Nené Marine field in Block Marine XII (Eni 65%, operator), located approximately 17 km from the coast and at a water depth of 28 metres, and in the vicinity of existing plant, produces from the pre-salt Djeno formation 2.5 km below ground level. The gas development of Litchendjili Marine, currently into production, and dedicated to providing gas for the domestic market through the CEC power plant, was followed by the discovery and exploitation of oil in the Nené field.

MARINE XII

120,000 boe/day

july 30, 2014

1

The deck leaves Louisiana - USA

destination Congo

Rather than building a new one ex novo, it was decided to relocate an existing vessel and adapt it to the requirements

august 26, 2014

2

Also the jacket is transported

september 13 - october 5

3

In just 3 weeks 17 km of connecting line was laid between the platform Nené (Nené EAP) and the Zatchi (ZAF3) field

The operations were carried out
thanks to a 6'' subsea line, ordered in Italy, and to the risers, connecting pipelines between the platforms

september 29, 2014

4

The deck arrives at Pointe-Noire

october 28, 2014

5

The jacket arrives at Pointe-Noire

december 3, 2014

6

Deck and jacket integration operations are completed

december 29, 2014

7

First oil

july 30, 2014

1

The deck leaves Louisiana - USA

destination Congo

Rather than building a new one ex novo, it was decided to relocate an existing vessel and adapt it to the requirements

august 26, 2014

2

Also the jacket is transported

september 13 - october 5

3

In just 3 weeks 17 km of connecting line was laid between the platform Nené (Nené EAP) and the Zatchi (ZAF3) field

The operations were carried out thanks to a 6'' subsea line, ordered in Italy, and to the risers, connecting pipelines between the platforms

september 29, 2014

4

The deck arrives at Pointe-Noire

october 28, 2014

5

The jacket arrives at Pointe-Noire

december 3, 2014

6

Deck and jacket integration operations are completed

december 29, 2014

7

First oil

deck

The covered area or deck of an offshore platform. The plant and equipment are mounted on the deck, along with accommodation modules and offices, and one or more drilling units. The deck weighs 380 tons, for the installation in Pointe-Noire the deck was disassembled until it reached 259 tons.

Jacket

The metallic structure, with 4 legs of about 33 metres in height and a weight of 300 tons, also reconfigured and adapted to the characteristics of the Nené field. The jacket is fixed to the seabed to support the weight of the deck and keep it out of the water.

subsea line

This serves to transport production from the Nené EAP platform to the ZAF3 platform where it is processed. The oil is then sent to the mainland using the existing pipeline connecting the field to the Zatchi Djeno terminal at Pointe Noire. The gas produced is used for the generation of the electricity needed by the Zatchi.

The complete development will be done in stages and includes the installation of production platforms and the drilling of 30 wells, with an estimated plateau of more than 120,000 boe/day. The potential of the block was increased by the discoveries of the Minsala oil and Nkala gas fields, both of which will be developed in stages in an integrated project.

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