Italian energy company Eni is creating two new business groups: Natural Resources, focused on developing the upstream oil and gas portfolio sustainably, and Energy Evolution, dedicated to supporting the evolution of the company’s power generation, product transformation, and marketing.
The two business groups will maintain close links in the hydrocarbon value chain, with the objective of best managing the different phases of the energy transition and jointly developing decarbonization processes to supply bio, blue, and green products.
The company’s central corporate functions will be organized to support the company’s chief executive officer (CEO) in his integrated compliance, control, and risk-management responsibilities and the business groups in meeting their objectives.
The new organization, presented by Eni CEO Claudio Descalzi to its Board of Directors, is a milestone in the implementation of the company’s strategy unveiled in February, which sets the evolution of the business over the next 30 years. The key, and as of today unique, element of this strategy is the combination of growth objectives with financial value creation as well as environmental sustainability, which will lead to a significant reduction in full lifecycle carbon emissions.
“This new structure reflects Eni’s pivot to the energy transition,” Descalzi said. “An irreversible path that will make us leaders in decarbonized energy products. With our new plan, in February, we have set our path for the next 30 years. As of today, it is unique in our industry. To make the plan come true, and position us to accelerate its delivery, we are creating two new business groups in our company. They will have specific objectives, but they will also cooperate to deliver on the transition and to provide our customers with the widest range of sustainable products. The reorganization also involves the corporate structures, which will evolve, continuing to be the central reference point for strategic and control processes, providing an effective support to meet the business groups’ objectives. The fight against climate change and promotion of sustainable development are recognized by governments, civil society, investors, and business alike as priorities for global development. Only those who pursue these in an innovative way will create value in the long term. We want to be main actors in a just energy transition, in which we believe.”
The new Eni will have two business groups: Natural Resources and Energy Evolution.
Natural Resources will continue to build up the value of Eni’s oil and gas upstream portfolio, with the objective of reducing its carbon footprint by scaling up energy efficiency and expanding production in the natural gas business, and its position in the wholesale market. Furthermore, it will focus its actions on the development of carbon capture and compensation projects.
The business group will incorporate the company’s oil and gas exploration, development, and production activities, natural gas wholesale via pipeline and liquified natural gas. In addition, it will include forestry conservation and carbon-storage projects and sustainability, which will continue to integrate across all Eni’s activities.
Energy Evolution will focus on the evolution of the businesses of power generation, transformation, and marketing of products from fossil to bio, blue, and green. In particular, it will focus on growing power generation from renewable energy and biomethane, it will coordinate the bio and circular evolution of the company’s refining system and chemical business, and it will further develop Eni’s retail portfolio, providing increasingly more decarbonized products for mobility, household consumption, and small enterprises.
The two new business groups will maintain a strong link in the management of the hydrocarbons value chain, with the objectives of running in the best possible way the phases of the energy transition and jointly developing decarbonization processes to supply green, blue, and bio products. Decarbonized, through carbon capture, gas-to-power and gas-to-hydrogen projects will be examples.
Furthermore, in terms of central structures, a new function—Technology, R&D, and Digital—will be created. This underlines the strategic relevance that research and development and technological innovation represent for Eni as a key driver to create value and growth, through the development of new technologies and their fast implementation on an industrial scale.