----

**UNITEDSTATESSECURITIES AND EXCHANGE COMMISSION**Washington, D.C. 20549***————————————————————*******Form 20-F****/A**(Amendment No. 1)

| (Mark One) |
|------------|

|      |   | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b)        or (g) OF THE SECURITIES EXCHANGE ACT OF 1934                                                              |
|------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| OR   |
| **** |   | **ANNUAL REPORT        PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES        EXCHANGE ACT OF 1934         For the fiscal year ended December 31, 200****8**     |
| OR   |
|      |   | TRANSITION REPORT PURSUANT        TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF        1934        For the transition period from _____ to _____        |
| OR   |
|      |   | SHELL COMPANY REPORT        PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES        EXCHANGE ACT OF 1934        Date of event requiring this shell company report |

**Commission file number:1-14090****Eni SpA**(Exact name ofRegistrant as specified in its charter) **Republic of Italy**(Jurisdiction ofincorporation or organization) **1, piazzaleEnrico Mattei00144 RomeItaly**(Address of principal executive offices)**Alessandro BerniniEni SpA1, piazza Ezio VanoniSan Donato Milanese20097 MilanItalyTel +39 02 52041730Fax +39 02 52041765**(Name, Telephone, Email and/or Facsimile number and Addressof Company Contact Person)***————————————————————*****Securitiesregistered or to be registered pursuant to Section 12(b) of theAct.

| Title of each class                                      |    | Name of each exchange on        which registered                                                                                                                                            |
|----------------------------------------------------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Shares        American Depositary Shares**             |    | **New York Stock Exchange*        New York Stock Exchange**                                                                                                                                 |
| (Which represent the right to receive two        shares) |    | * Not for        trading, but only in connection with the registration of        American Depositary Shares, pursuant to the requirements        of the Securities and Exchange Commission. |

Securities registered or to beregistered pursuant to Section 12(g) of the Act:**None**Securities for which there is a reporting obligation pursuantto Section 15(d) of the Act:**None**

Indicate the number of outstanding shares ofeach of the issuer’s classes of capital or common stock asof the close of the period covered by the annual report.                                        **Ordinary sharesof euro 1.00 each**                                                                                                                                                                **4,005,358,876**

Indicate by check mark if the registrant is awell-known seasoned issuer, as defined in Rule 405 of theSecurities Act.

| Yes  | **** |     |  No  |  |
|-----------|------|--------------------|----------------|--|

If this report is an annual or transitionreport, indicate by check mark if the registrant is not requiredto file reports pursuant to Section 13 or 15(d) of the SecuritiesExchange Act of 1934.

| Yes  |  |     |  No  | **** |
|-----------|--|--------------------|----------------|------|

Note - Checking the box above will not relieveany registrant required to file reports pursuant to Section 13 or15(d) of the Securities Exchange Act of 1934 from theirobligations under those Sections.Indicate by check mark whether the registrant (1) has filed allreports required to be filed by Section 13 or 15(d) of theSecurities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required tofile such reports), and (2) has been subject to such filingrequirements for the past 90 days.

| Yes  | **** |     |  No  |  |
|-----------|------|--------------------|----------------|--|

Indicate by check mark whether the registrantis a large accelerated filer, an accelerated filer, or anon-accelerated filer. See definition of "accelerated filerand large accelerated filer" in Rule 12b-2 of the ExchangeAct. (Check one):

| Large accelerated filer | **** | Accelerated filer |  | Non-accelerated filer |  |
|-------------------------|------|-------------------|--|-----------------------|--|

Indicate by check mark which basis ofaccounting the registrant has used to prepare the financialstatements included in this filing:

| U.S. GAAP |  | International Financial        Reporting Standards as issued by the International        Accounting Standards Board | **** | Other |  |
|-----------|--|---------------------------------------------------------------------------------------------------------------------|------|-------|--|

If "Other" has been checked inresponse to the previous question, indicate by check mark whichfinancial statement item the registrant has elected to follow.

| Item        17 |  |     |  Item        18 |  |
|----------------|--|--------------------|----------------------|--|

If this is an annual report, indicate by checkmark whether the registrant is a shell company (as defined inRule 12b-2 of the Exchange Act).

| Yes  |  |     |  No  | **** |
|-----------|--|--------------------|----------------|------|

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##### Table of Contents

**EXPLANATORY NOTE**

Eni SpA is filing this Amendment No. 1 to its Annual Report onForm 20-F for the year ended December 31, 2008, as filed with theU.S. Securities and Exchange Commission on May 14, 2009("Original Form 20-F") in order to include the earlieryear of activities in the Company’s consolidated statementsof changes in shareholders’ equity, which was inadvertentlyomitted in the Original Form 20-F. 

Accordingly, this Amendment amends Item 18 of the OriginalForm 20-F to provide the 2006 consolidated statement of changesin shareholders’ equity appearing on page F-5 of thisAmendment.

This Amendment should be read in conjunction with the OriginalForm 20-F, which continues to speak as of the date that theOriginal Form 20-F was filed. Except as specifically noted above,this Amendment does not modify or update any disclosures in theOriginal Form 20-F. Accordingly, this Amendment does not reflectevents occurring after the filing of the Original Form 20-F ormodify or update any disclosures that may have been affected bysubsequent events, including the results of operations, financialcondition, cash flows or any forward-looking statements made inthe Original Form 20-F.

 

##### **TABLE OFCONTENTS**

 

**PART I**

Omissis

**PART II**

Omissis

**PART III**

**Item 17. FINANCIAL STATEMENTS**

Not applicable.

 

**Item 18. FINANCIAL STATEMENTS**

Index to Financial Statements:

|                                                                                                                               |   | **Page** |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
|                                                                                                                               |   |     |
| Report of Independent        Registered Public Accounting Firm                                                                     |   | F-1      |
|                                                                                                                               |   |     |
| Consolidated Balance Sheet        at December 31, 2008 and 2007                                                                    |   | F-3      |
|                                                                                                                               |   |     |
| Consolidated profit and loss        account for the years ended December 31, 2008, 2007 and        2006                            |   | F-4      |
|                                                                                                                               |   |     |
| Consolidated Statements of        changes in shareholder’s equity for the years ended        December 31, 2008, 2007 and 2006 |   | F-5      |
|                                                                                                                               |   |     |
| Consolidated Statement of        cash flows for the years ended December 31, 2008, 2007        and 2006                            |   | F-8      |
|                                                                                                                               |   |     |
| Supplemental cash flow        information for the years ended December 31, 2008, 2007        and 2006                              |   | F-10     |
|                                                                                                                               |   |     |
| Notes to the Consolidated        Financial Statements                                                                              |   | F-25     |

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##### Table of Contents

 

**Item 19. EXHIBITS**

Certifications:

12.1. Certification pursuant to Rule13a-14(a) of the Securities Exchange Act

12.2. Certification pursuant to Rule13a-14(a) of the Securities Exchange Act

13.1. Certification furnished pursuant toRule 13a-14(b) of the Securities Exchange Act (such certificateis not deemed filed for purpose of Section 18 of the Exchange Actand not incorporated by reference with any filing under theSecurities Act)

13.2. Certification furnished pursuant toRule 13a-14(b) of the Securities Exchange Act (such certificateis not deemed filed for purpose of Section 18 of the Exchange Actand not incorporated by reference with any filing under theSecurities Act)

 

 

 

 

 

 

 

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##### Table of Contents

**REPORT OF INDEPENDENT REGISTERED PUBLICACCOUNTING FIRM**

 

 

> 
To the Board of Directors and Shareholders of Eni            SpA.

 

In our opinion, the accompanying consolidated balance        sheets and the related consolidated profit and loss        accounts, consolidated statements of changes in        shareholders’ equity and consolidated statements of        cash flows present fairly, in all material respects, the        financial position of Eni SpA and its subsidiaries at        December 31, 2008 and December 31, 2007, and the results        of their operations and their cash flows for each of the        three years in the period ended December 31, 2008 in        conformity with International Financial Reporting        Standards as issued by the International Accounting        Standards Board. Also in our opinion, the Company        maintained, in all material respects, effective internal        control over financial reporting as of December 31, 2008,        based on criteria established in *Internal Control -        Integrated Framework* issued by the Committee of        Sponsoring Organizations of the Treadway Commission        (COSO). The Company's management is responsible for these        financial statements, for maintaining effective internal        control over financial reporting and for its assessment        of the effectiveness of internal control over financial        reporting, included in Management’s Annual Report on        Internal Control over Financial Reporting appearing in        Item 15 Controls and Procedures of the 2008 Annual Report        to Shareholders. Our responsibility is to express        opinions on these financial statements and on the        Company's internal control over financial reporting based        on our integrated audits. We conducted our audits in        accordance with the standards of the Public Company        Accounting Oversight Board (United States). Those        standards require that we plan and perform the audits to        obtain reasonable assurance about whether the financial        statements are free of material misstatement and whether        effective internal control over financial reporting was        maintained in all material respects. Our audits of the        financial statements included examining, on a test basis,        evidence supporting the amounts and disclosures in the        financial statements, assessing the accounting principles        used and significant estimates made by management, and        evaluating the overall financial statement presentation.        Our audit of internal control over financial reporting        included obtaining an understanding of internal control        over financial reporting, assessing the risk that a        material weakness exists, and testing and evaluating the        design and operating effectiveness of internal control        based on the assessed risk. Our audits also included        performing such other procedures as we considered        necessary in the circumstances. We believe that our        audits provide a reasonable basis for our opinions.

A company’s internal control over financial        reporting is a process designed to provide reasonable        assurance regarding the reliability of financial        reporting and the preparation of financial statements for        external purposes in accordance with generally accepted        accounting principles. A company’s internal control        over financial reporting includes those policies and        procedures that (i) pertain to the maintenance of records        that, in reasonable detail, accurately and fairly reflect        the transactions and dispositions of the assets of the        company; (ii) provide reasonable assurance that        transactions are recorded as necessary to permit        preparation of financial statements in accordance with        generally accepted accounting principles, and that        receipts and expenditures of the company are being made        only in accordance with authorizations of management and        directors of the company; and (iii) provide reasonable        assurance regarding prevention or timely detection of        unauthorized acquisition, use, or disposition of the        company’s assets that could have a material effect        on the financial statements.

 

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##### Table of Contents

 

> 
 

Because of its inherent limitations, internal control        over financial reporting may not prevent or detect        misstatements. Also, projections of any evaluation of        effectiveness to future periods are subject to the risk        that controls may become inadequate because of changes in        conditions, or that the degree of compliance with the        policies or procedures may deteriorate.

 

**PricewaterhouseCoopers SpA**

Rome, Italy            May 14, 2009

 

 

 

 

 

 

 

 

 

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##### Table of Contents

**CONSOLIDATED BALANCE SHEET****(euro million)**

|   |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |

|    |   | Note   |   | Total amount |   | *of which with related parties* |   | Total amount |   | *of which with related parties* |
|--------------|--------|--------|--------|--------------|--------|---------------------------------|--------|--------------|--------|---------------------------------|
|         |   |   |   |              |   |                                 |   |              |   |                                 |

| **ASSETS**                                                                             |   |   |   |        |   |   |    |   |        |   |   |    |
|----------------------------------------------------------------------------------------|--------|--------|--------|-------------|--------|--------|---------|--------|-------------|--------|--------|---------|
| **Current        assets**                                                              |   |   |   |        |   |   |    |   |        |   |   |    |
| Cash and cash equivalents                                                              |   | (1)    |   | 2,114       |   |   |    |   | 1,939       |   |   |    |
| Other        financial assets held for trading or available for sale:                  |   | (2)    |   |        |   |   |    |   |        |   |   |    |
| *- equity instruments*                                                                 |   |   |   | *2,476*     |   |   |    |   | *2,741*     |   |   |    |
| *- other        securities*                                                            |   |   |   | *433*       |   |   |    |   | *495*       |   |   |    |
|                                                                                   |   |   |   | 2,909       |   |   |    |   | 3,236       |   |   |    |
| Trade and        other receivables                                                     |   | (3)    |   | 20,676      |   |   | *1,616* |   | 22,222      |   |   | *1,539* |
| Inventories                                                                            |   | (4)    |   | 5,499       |   |   |    |   | 6,082       |   |   |    |
| Current        tax assets                                                              |   | (5)    |   | 703         |   |   |    |   | 170         |   |   |    |
| Other current tax assets                                                               |   | (6)    |   | 833         |   |   |    |   | 1,130       |   |   |    |
| Other        current assets                                                            |   | (7)    |   | 1,080       |   |   |    |   | 2,349       |   |   | 59      |
| **Total current assets**                                                               |   |   |   | **33,814**  |   |   |    |   | **37,128**  |   |   |    |
| **Non-current        assets**                                                          |   |   |   |        |   |   |    |   |        |   |   |    |
| Property, plant and equipment                                                          |   | (8)    |   | 46,919      |   |   |    |   | 55,833      |   |   |    |
| Other        assets                                                                    |   | (9)    |   | 563         |   |   |    |   |        |   |   |    |
| Inventory - compulsory stock                                                           |   | (10)   |   | 2,171       |   |   |    |   | 1,196       |   |   |    |
| Intangible        assets                                                               |   | (11)   |   | 7,551       |   |   |    |   | 11,037      |   |   |    |
| Equity-accounted investments                                                           |   | (12)   |   | 5,639       |   |   |    |   | 5,471       |   |   |    |
| Other        investments                                                               |   | (12)   |   | 472         |   |   |    |   | 410         |   |   |    |
| Other financial assets                                                                 |   | (13)   |   | 923         |   |   | *87*    |   | 1,134       |   |   | *356*   |
| Deferred        tax assets                                                             |   | (14)   |   | 1,915       |   |   |    |   | 2,912       |   |   |    |
| Other non-current receivables                                                          |   | (15)   |   | 1,110       |   |   | *16*    |   | 1,401       |   |   | *21*    |
| **Total        non-current assets**                                                    |   |   |   | **67,263**  |   |   |    |   | **79,394**  |   |   |    |
| **Assets classified as held for sale**                                                 |   | (26)   |   | **383**     |   |   |    |   | **68**      |   |   |    |
| **TOTAL        ASSETS**                                                                |   |   |   | **101,460** |   |   |    |   | **116,590** |   |   |    |
| **LIABILITIES AND SHAREHOLDERS’ EQUITY**                                          |   |   |   |        |   |   |    |   |        |   |   |    |
| **Current        liabilities**                                                         |   |   |   |        |   |   |    |   |        |   |   |    |
| Short-term debt                                                                        |   | (16)   |   | 7,763       |   |   | *131*   |   | 6,359       |   |   | *153*   |
| Current        portion of long-term debt                                               |   | (21)   |   | 737         |   |   |    |   | 549         |   |   |    |
| Trade and other payables                                                               |   | (17)   |   | 17,116      |   |   | *1,021* |   | 20,515      |   |   | *1,253* |
| Income        taxes payable                                                            |   | (18)   |   | 1,688       |   |   |    |   | 1,949       |   |   |    |
| Other taxes payable                                                                    |   | (19)   |   | 1,383       |   |   |    |   | 1,660       |   |   |    |
| Other        current liabilities                                                       |   | (20)   |   | 1,556       |   |   | *4*     |   | 4,319       |   |   | *4*     |
| **Total current liabilities**                                                          |   |   |   | **30,243**  |   |   |    |   | **35,351**  |   |   |    |
| **Non-current        liabilities**                                                     |   |   |   |        |   |   |    |   |        |   |   |    |
| Long-term debt                                                                         |   | (21)   |   | 11,330      |   |   | *16*    |   | 13,929      |   |   | *9*     |
| Provisions        for contingencies                                                    |   | (22)   |   | 8,486       |   |   |    |   | 9,573       |   |   |    |
| Provisions for employee benefits                                                       |   | (23)   |   | 935         |   |   |    |   | 947         |   |   |    |
| Deferred        tax liabilities                                                        |   | (24)   |   | 5,471       |   |   |    |   | 5,742       |   |   |    |
| Other non-current liabilities                                                          |   | (25)   |   | 2,031       |   |   | *57*    |   | 2,538       |   |   | *53*    |
| **Total        non-current liabilities**                                               |   |   |   | **28,253**  |   |   |    |   | **32,729**  |   |   |    |
| **Liabilities directly associated with the        assets classified as held for sale** |   | (26)   |   | **97**      |   |   |    |   |        |   |   |    |
| **TOTAL        LIABILITIES**                                                           |   |   |   | **58,593**  |   |   |    |   | **68,080**  |   |   |    |
| **SHAREHOLDERS’ EQUITY**                                                          |   | (27)   |   |        |   |   |    |   |        |   |   |    |
| **Minority        interest**                                                           |   |   |   | **2,439**   |   |   |    |   | **4,074**   |   |   |    |
| **Eni shareholders’ equity**                                                      |   |   |   |        |   |   |    |   |        |   |   |    |
| Share        capital                                                                   |   |   |   | 4,005       |   |   |    |   | 4,005       |   |   |    |
| Reserves                                                                               |   |   |   | 34,610      |   |   |    |   | 40,722      |   |   |    |
| Treasury        shares                                                                 |   |   |   | (5,999      | )      |   |    |   | (6,757      | )      |   |    |
| Interim dividend                                                                       |   |   |   | (2,199      | )      |   |    |   | (2,359      | )      |   |    |
| Net profit                                                                             |   |   |   | 10,011      |   |   |    |   | 8,825       |   |   |    |
| **Total Eni shareholders’ equity**                                                |   |   |   | **40,428**  |   |   |    |   | **44,436**  |   |   |    |
| **TOTAL        SHAREHOLDERS’ EQUITY**                                             |   |   |   | **42,867**  |   |   |    |   | **48,510**  |   |   |    |
| **TOTAL LIABILITIES AND SHAREHOLDERS’        EQUITY**                             |   |   |   | **101,460** |   |   |    |   | **116,590** |   |   |    |

|   |   |   |   |  |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|--------|--|

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##### Table of Contents

**CONSOLIDATED PROFIT AND LOSSACCOUNT****(euro million except asotherwise stated)**

|   |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|----------|--------|----------|--------|----------|
|   |   |          |   |          |   |          |

|    |   | Note   |   | Total amount |   | *of which with related parties* |   | Total amount |   | *of which with related parties* |   | Total amount |   | *of which with related parties* |
|--------------|--------|--------|--------|--------------|--------|---------------------------------|--------|--------------|--------|---------------------------------|--------|--------------|--------|---------------------------------|
|         |   |   |   |              |   |                                 |   |              |   |                                 |   |              |   |                                 |

| **REVENUES**                                                              |   |   |   |       |   |   |    |   |   |       |   |   |    |   |   |        |   |   |    |   |
|---------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|---------|--------|--------|------------|--------|--------|---------|--------|--------|-------------|--------|--------|---------|--------|
| Net sales        from operations                                          |   | (30)   |   | 86,105     |   |   | *3,974* |   |   | 87,256     |   |   | *4,198* |   |   | 108,148     |   |   | *5,048* |   |
| Other income and revenues                                                 |   |   |   | 783        |   |   |    |   |   | 827        |   |   |    |   |   | 720         |   |   | *39*    |   |
| **Total        revenues**                                                 |   |   |   | **86,888** |   |   |    |   |   | **88,083** |   |   |    |   |   | **108,868** |   |   |    |   |
| **OPERATING EXPENSES**                                                    |   | (31)   |   |       |   |   |    |   |   |       |   |   |    |   |   |        |   |   |    |   |
| Purchases,        services and other                                      |   |   |   | 57,490     |   |   | *2,720* |   |   | 58,179     |   |   | *3,777* |   |   | 76,408      |   |   | *6,298* |   |
| *- of which non-recurring charge*                                         |   |   |   | *239*      |   |   |    |   |   | *91*       |   |   |    |   |   | *(21*       | *)*    |   |    |   |
| Payroll        and related costs                                          |   |   |   | 3,650      |   |   |    |   |   | 3,800      |   |   |    |   |   | 4,004       |   |   |    |   |
| *- of which non-recurring income*                                         |   |   |   |       |   |   |    |   |   | *(83*      | *)*    |   |    |   |   |        |   |   |    |   |
| Depreciation,        depletion, amortization and impairments              |   |   |   | 6,421      |   |   |    |   |   | 7,236      |   |   |    |   |   | 9,815       |   |   |    |   |
| **OPERATING PROFIT**                                                      |   |   |   | **19,327** |   |   |    |   |   | **18,868** |   |   |    |   |   | **18,641**  |   |   |    |   |
| **FINANCE        INCOME (EXPENSE)**                                       |   | (32)   |   |       |   |   |    |   |   |       |   |   |    |   |   |        |   |   |    |   |
| Finance income                                                            |   |   |   | 3,749      |   |   | *58*    |   |   | 4,445      |   |   | *49*    |   |   | 7,985       |   |   | *42*    |   |
| Finance        expense                                                    |   |   |   | (3,971     | )      |   | *(18*   | *)*    |   | (4,554     | )      |   | *(20*   | *)*    |   | (8,198      | )      |   | *(17*   | *)*    |
| Derivative financial instruments                                          |   |   |   | 383        |   |   |    |   |   | 26         |   |   | *10*    |   |   | (551        | )      |   | *58*    |   |
|                                                                      |   |   |   | **161**    |   |   |    |   |   | **(83**    | **)**  |   |    |   |   | **(764**    | **)**  |   |    |   |
| **INCOME FROM INVESTMENTS**                                               |   | (33)   |   |       |   |   |    |   |   |       |   |   |    |   |   |        |   |   |    |   |
| Share of        profit (loss) of equity-accounted investments             |   |   |   | 795        |   |   |    |   |   | 773        |   |   |    |   |   | 640         |   |   |    |   |
| Other gain (loss) from investments                                        |   |   |   | 108        |   |   |    |   |   | 470        |   |   |    |   |   | 733         |   |   |    |   |
|                                                                      |   |   |   | **903**    |   |   |    |   |   | **1,243**  |   |   |    |   |   | **1,373**   |   |   |    |   |
| **PROFIT BEFORE INCOME TAXES**                                            |   |   |   | **20,391** |   |   |    |   |   | **20,028** |   |   |    |   |   | **19,250**  |   |   |    |   |
| Income        taxes                                                       |   | (34)   |   | (10,568    | )      |   |    |   |   | (9,219     | )      |   |    |   |   | (9,692      | )      |   |    |   |
| **Net profit**                                                            |   |   |   | **9,823**  |   |   |    |   |   | **10,809** |   |   |    |   |   | **9,558**   |   |   |    |   |
| **Attributable        to**                                                |   |   |   |       |   |   |    |   |   |       |   |   |    |   |   |        |   |   |    |   |
| Eni                                                                       |   |   |   | 9,217      |   |   |    |   |   | 10,011     |   |   |    |   |   | 8,825       |   |   |    |   |
| Minority        interest                                                  |   | (27)   |   | 606        |   |   |    |   |   | 798        |   |   |    |   |   | 733         |   |   |    |   |
|                                                                      |   |   |   | **9,823**  |   |   |    |   |   | **10,809** |   |   |    |   |   | **9,558**   |   |   |    |   |
| **Earnings        per share attributable to Eni**        (euro per share) |   | (35)   |   |       |   |   |    |   |   |       |   |   |    |   |   |        |   |   |    |   |
| Basic                                                                     |   |   |   | 2.49       |   |   |    |   |   | 2.73       |   |   |    |   |   | 2.43        |   |   |    |   |
| Diluted                                                                   |   |   |   | 2.49       |   |   |    |   |   | 2.73       |   |   |    |   |   | 2.43        |   |   |    |   |

|   |   |   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

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**CONSOLIDATED STATEMENTS OFCHANGES IN SHAREHOLDERS’ EQUITY****(euro million)**

|   | **Eni shareholders’ equity** |   |
|--------|-----------------------------------|--------|
|   |                                   |   |

|    |   | Share capital |   | Legal reserve of Eni SpA |   | Reserve for treasury shares |   | Other reserves |   | Cumulative         currency translation        differences |   | Treasury shares |   | Retained earnings |   | Interim dividend |   | Net profit for the year |   | Total |   | Minority interest |   | Total shareholders’ equity |
|--------------|--------|---------------|--------|--------------------------|--------|-----------------------------|--------|----------------|--------|------------------------------------------------------------|--------|-----------------|--------|-------------------|--------|------------------|--------|-------------------------|--------|-------|--------|-------------------|--------|---------------------------------|
|         |   |               |   |                          |   |                             |   |                |   |                                                            |   |                 |   |                   |   |                  |   |                         |   |       |   |                   |   |                                 |

| **Balance at December 31, 2005**                                                                                                          |   | **4,005** |   |   | **959** |   |   | **5,345** |   |   | **5,351**  |   |   | **941**    |   |   | **(4,216** | **)**  |   | **17,381** |   |   | **(1,686** | **)**  |   | **8,788**  |   |   | **36,868** |   |   | **2,349** |   |   | **39,217** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|---------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|
| **Net        profit for the year**                                                                                                        |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | **9,217**  |   |   | **9,217**  |   |   | **606**   |   |   | **9,823**  |   |
| **Gains (losses) recognized directly        in equity**                                                                              |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Change in        the fair value of available-for-sale securities                                                                          |   |      |   |   |    |   |   |      |   |   | (13        | )      |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (13        | )      |   |      |   |   | (13        | )      |
| Change in the fair value of cash flow hedge        derivatives                                                                            |   |      |   |   |    |   |   |      |   |   | (15        | )      |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (15        | )      |   |      |   |   | (15        | )      |
| Foreign        currency translation differences                                                                                           |   |      |   |   |    |   |   |      |   |   |       |   |   | (1,266     | )      |   |       |   |   |       |   |   |       |   |   |       |   |   | (1,266     | )      |   | (29       | )      |   | (1,295     | )      |
|                                                                                                                                      |   |      |   |   |    |   |   |      |   |   | **(28**    | **)**  |   | **(1,266** | **)**  |   |       |   |   |       |   |   |       |   |   |       |   |   | **(1,294** | **)**  |   | **(29**   | **)**  |   | **(1,323** | **)**  |
| **Total        recognized income and (expense) for the year**                                                                             |   |      |   |   |    |   |   |      |   |   | **(28**    | **)**  |   | **(1,266** | **)**  |   |       |   |   |       |   |   |       |   |   | **9,217**  |   |   | **7,923**  |   |   | **577**   |   |   | **8,500**  |   |
| **Transactions with shareholders**                                                                                                        |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Dividend        distribution of Eni SpA (euro 0.65 per share) in        settlement of 2005 interim dividend of euro 0.45 per        share |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   | 1,686      |   |   | (4,086     | )      |   | (2,400     | )      |   |      |   |   | (2,400     | )      |
| Dividend distribution of Eni SpA (euro 0.60 per        share)                                                                             |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (2,210     | )      |   |       |   |   | (2,210     | )      |   |      |   |   | (2,210     | )      |
| Dividend        distribution of other companies                                                                                           |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (222      | )      |   | (222       | )      |
| Payments by minority shareholders                                                                                                         |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | 22        |   |   | 22         |   |
| Allocation        of 2005 net profit                                                                                                      |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   | 4,702      |   |   |       |   |   | (4,702     | )      |   |       |   |   |      |   |   |       |   |
| Authorization of shares repurchase                                                                                                        |   |      |   |   |    |   |   | 2,000     |   |   |       |   |   |       |   |   |       |   |   | (2,000     | )      |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Shares        repurchased                                                                                                                 |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   | (1,241     | )      |   |       |   |   |       |   |   |       |   |   | (1,241     | )      |   |      |   |   | (1,241     | )      |
| Treasury shares sold under incentive plans for        Eni managers                                                                        |   |      |   |   |    |   |   | (85       | )      |   | 54         |   |   |       |   |   | 85         |   |   | 21         |   |   |       |   |   |       |   |   | 75         |   |   |      |   |   | 75         |   |
| Difference        between the carrying amount and strike price of stock        options exercised by Eni managers                          |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   | 7          |   |   |       |   |   |       |   |   | 7          |   |   |      |   |   | 7          |   |
|                                                                                                                                      |   |      |   |   |    |   |   | **1,915** |   |   | **54**     |   |   |       |   |   | **(1,156** | **)**  |   | **2,730**  |   |   | **(524**   | **)**  |   | **(8,788** | **)**  |   | **(5,769** | **)**  |   | **(200**  | **)**  |   | **(5,969** | **)**  |
| **Other        changes in shareholders’ equity**                                                                                     |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Sale to Saipem Projects SpA of Snamprogetti SpA                                                                                           |   |      |   |   |    |   |   |      |   |   | 247        |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | 247        |   |   | (247      | )      |   |       |   |
| Net effect        related to the purchase of treasury shares by Saipem SpA        and Snam Rete Gas SpA                                   |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (306      | )      |   | (306       | )      |
| Purchase and sale to third parties of        consolidated subsidiaries                                                                    |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (5        | )      |   | (5         | )      |
| Cost        related to stock options                                                                                                      |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   | 14         |   |   |       |   |   |       |   |   | 14         |   |   |      |   |   | 14         |   |
| Reclassification of reserves of Eni SpA                                                                                                   |   |      |   |   |    |   |   | 2         |   |   | (5,224     | )      |   |       |   |   | (2         | )      |   | 5,224      |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Foreign        currency translation differences on the distribution of        dividends and other changes                                 |   |      |   |   |    |   |   |      |   |   |       |   |   | (73        | )      |   |       |   |   | (181       | )      |   |       |   |   |       |   |   | (254       | )      |   | 2         |   |   | (252       | )      |
|                                                                                                                                      |   |      |   |   |    |   |   | **2**     |   |   | **(4,977** | **)**  |   | **(73**    | **)**  |   | **(2**     | **)**  |   | **5,057**  |   |   |       |   |   |       |   |   | **7**      |   |   | **(556**  | **)**  |   | **(549**   | **)**  |
|                                                                                                                                      |   |           |        |   |         |        |   |           |        |   |            |        |   |            |        |   |            |        |   |            |        |   |            |        |   |            |        |   |            |        |   |           |        |   |            |        |
| **Balance        at December 31, 2006**                                                                                                   |   | **4,005** |   |   | **959** |   |   | **7,262** |   |   | **400**    |   |   | **(398**   | **)**  |   | **(5,374** | **)**  |   | **25,168** |   |   | **(2,210** | **)**  |   | **9,217**  |   |   | **39,029** |   |   | **2,170** |   |   | **41,199** |   |
|                                                                                                                                      |   |           |        |   |         |        |   |           |        |   |            |        |   |            |        |   |            |        |   |            |        |   |            |        |   |            |        |   |            |        |   |           |        |   |            |        |

F-5

----

##### Table of Contents

**CONSOLIDATED STATEMENTS OFCHANGES IN SHAREHOLDERS’ EQUITY*****continued*********(euro million)**

|   | **Eni shareholders’ equity** |   |
|--------|-----------------------------------|--------|
|   |                                   |   |

|   |   | Share capital |   | Legal reserve of Eni SpA |   | Reserve for treasury shares |   | Other reserves |   | Cumulative         currency translation        differences |   | Treasury shares |   | Retained earnings |   | Interim dividend |   | Net profit for the year |   | Total |   | Minority interest |   | Total shareholders’ equity |
|--------|--------|---------------|--------|--------------------------|--------|-----------------------------|--------|----------------|--------|------------------------------------------------------------|--------|-----------------|--------|-------------------|--------|------------------|--------|-------------------------|--------|-------|--------|-------------------|--------|---------------------------------|
|   |   |               |   |                          |   |                             |   |                |   |                                                            |   |                 |   |                   |   |                  |   |                         |   |       |   |                   |   |                                 |

| **Balance at December 31, 2006**                                                                                                          |   | **4,005** |   |   | **959** |   |   | **7,262** |   |   | **400**    |   |   | **(398**   | **)**  |   | **(5,374** | **)**  |   | **25,168** |   |   | **(2,210** | **)**  |   | **9,217**  |   |   | **39,029** |   |   | **2,170** |   |   | **41,199** |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|---------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|
| **Net        profit for the year**                                                                                                        |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | **10,011** |   |   | **10,011** |   |   | **798**   |   |   | **10,809** |   |
| **Gains (losses) recognized directly in equity**                                                                                          |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Change in        the fair value of available-for-sale securities                                                                          |   |      |   |   |    |   |   |      |   |   | (4         | )      |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (4         | )      |   |      |   |   | (4         | )      |
| Change in the fair value of cash flow hedge        derivatives                                                                            |   |      |   |   |    |   |   |      |   |   | (1,370     | )      |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (1,370     | )      |   |      |   |   | (1,370     | )      |
| Foreign        currency translation differences                                                                                           |   |      |   |   |    |   |   |      |   |   | 25         |   |   | (1,954     | )      |   |       |   |   |       |   |   |       |   |   |       |   |   | (1,929     | )      |   | (51       | )      |   | (1,980     | )      |
|                                                                                                                                      |   |      |   |   |    |   |   |      |   |   | **(1,349** | **)**  |   | **(1,954** | **)**  |   |       |   |   |       |   |   |       |   |   |       |   |   | **(3,303** | **)**  |   | **(51**   | **)**  |   | **(3,354** | **)**  |
| **Total        recognized income and (expense) for the year**                                                                             |   |      |   |   |    |   |   |      |   |   | **(1,349** | **)**  |   | **(1,954** | **)**  |   |       |   |   |       |   |   |       |   |   | **10,011** |   |   | **6,708**  |   |   | **747**   |   |   | **7,455**  |   |
| **Transactions with shareholders**                                                                                                        |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Dividend        distribution of Eni SpA (euro 0.65 per share) in        settlement of 2006 interim dividend of euro 0.60 per        share |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   | 2,210      |   |   | (4,594     | )      |   | (2,384     | )      |   |      |   |   | (2,384     | )      |
| Interim dividend distribution of Eni SpA (euro        0.60 per share)                                                                     |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (2,199     | )      |   |       |   |   | (2,199     | )      |   |      |   |   | (2,199     | )      |
| Dividend        distribution of other companies                                                                                           |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (289      | )      |   | (289       | )      |
| Payments by minority shareholders                                                                                                         |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | 1         |   |   | 1          |   |
| Allocation        of 2006 net profit                                                                                                      |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   | 4,623      |   |   |       |   |   | (4,623     | )      |   |       |   |   |      |   |   |       |   |
| Shares repurchased                                                                                                                        |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   | (680       | )      |   |       |   |   |       |   |   |       |   |   | (680       | )      |   |      |   |   | (680       | )      |
| Treasury        shares sold under incentive plans for Eni managers                                                                        |   |      |   |   |    |   |   | (55       | )      |   | 35         |   |   |       |   |   | 55         |   |   | 11         |   |   |       |   |   |       |   |   | 46         |   |   |      |   |   | 46         |   |
| Difference between the carrying amount and        strike price of stock options exercised by Eni managers                                 |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   | 9          |   |   |       |   |   |       |   |   | 9          |   |   |      |   |   | 9          |   |
|                                                                                                                                      |   |      |   |   |    |   |   | **(55**   | **)**  |   | **35**     |   |   |       |   |   | **(625**   | **)**  |   | **4,643**  |   |   | **11**     |   |   | **(9,217** | **)**  |   | **(5,208** | **)**  |   | **(288**  | **)**  |   | **(5,496** | **)**  |
| **Other changes in shareholders’ equity**                                                                                            |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |
| Net effect        related to the purchase of treasury shares by Saipem SpA        and Snam Rete Gas SpA                                   |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   | (201      | )      |   | (201       | )      |
| Cost related to stock option and stock grant                                                                                              |   |      |   |   |    |   |   |      |   |   |       |   |   |       |   |   |       |   |   | 18         |   |   |       |   |   |       |   |   | 18         |   |   |      |   |   | 18         |   |
| Foreign        currency translation differences on the distribution of        dividends and other changes                                 |   |      |   |   |    |   |   |      |   |   |       |   |   | 119        |   |   |       |   |   | (238       | )      |   |       |   |   |       |   |   | (119       | )      |   | 11        |   |   | (108       | )      |
|                                                                                                                                      |   |      |   |   |    |   |   |      |   |   |       |   |   | **119**    |   |   |       |   |   | **(220**   | **)**  |   |       |   |   |       |   |   | **(101**   | **)**  |   | **(190**  | **)**  |   | **(291**   | **)**  |
| **Balance        at December 31, 2007**                                                                                                   |   | **4,005** |   |   | **959** |   |   | **7,207** |   |   | **(914**   | **)**  |   | **(2,233** | **)**  |   | **(5,999** | **)**  |   | **29,591** |   |   | **(2,199** | **)**  |   | **10,011** |   |   | **40,428** |   |   | **2,439** |   |   | **42,867** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

F-6

----

##### Table of Contents

**CONSOLIDATED STATEMENTS OFCHANGES IN SHAREHOLDERS’ EQUITY*****continued*******(euro million)**

|   | **Eni shareholders’ equity** |   |
|--------|-----------------------------------|--------|
|   |                                   |   |

|   |   | Share capital |   | Legal reserve of Eni SpA |   | Reserve for treasury shares |   | Other reserves |   | Cumulative         currency translation        differences |   | Treasury shares |   | Retained earnings |   | Interim dividend |   | Net profit for the year |   | Total |   | Minority interest |   | Total shareholders’ equity |
|--------|--------|---------------|--------|--------------------------|--------|-----------------------------|--------|----------------|--------|------------------------------------------------------------|--------|-----------------|--------|-------------------|--------|------------------|--------|-------------------------|--------|-------|--------|-------------------|--------|---------------------------------|
|   |   |               |   |                          |   |                             |   |                |   |                                                            |   |                 |   |                   |   |                  |   |                         |   |       |   |                   |   |                                 |

| **Balance at December 31, 2007**                                                                                                   |    | **4,005**                |         |    | **959**                  |         |    | **7,207**    |         |    | **(914**     | **)**        |    | **(2,233**   | **)**        |    | **(5,999**               | **)**        |    | **29,591**   |         |    | **(2,199**   | **)**        |                | **10,011**               |         |                | **40,428**   |         |    | **2,439**    |         |                | **42,867**   |         |
|------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------|--------------|--------------|--------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------|--------------------------|--------------------------|--------------|--------------------------|--------------|--------------|--------------|--------------|--------------|--------------------------|--------------|--------------|
| **Net profit for the year**                                                                                                        |    |                |    |    |                |    |    |    |         |    |    |         |    |    |    |    |                |    |    |    |    |    |    |    |                | **8,825**                |    |                | **8,825**    |    |    | **733**      |    |                | **9,558**    |         |
| **Gains (losses) recognized directly in equity**                                                                                   |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    |    |    |                |    |    |
| Change in the fair value of available-for-sale        securities (Note 27)                                                         |    |                |    |    |                |    |    |    |    |    | 2            |    |    |    |         |    |                |    |    |    |    |    |    |    |      |                |    |      | 2            |    |         |    |    |      | 2            |    |
| Change in the fair value of cash flow hedge        derivatives (Note 27)                                                           |    |                |    |    |                |    |    |    |    |    | 1,255        |    |    |    |    |    |                |    |    |    |         |    |    |    |                |                |    |                | 1,255        |    |    | (52          | )            |                | 1,203        |    |
| Foreign currency translation differences                                                                                           |    |                |    |    |                |    |    |    |    |    |    |    |    | 1,066        |    |    |                |    |    |    |    |    |    |    |                |                |    |                | 1,066        |    |    | 11           |    |                | 1,077        |    |
|                                                                                                                          |    |                |    |    |                |    |    |    |    |    | **1,257**    |    |    | **1,066**    |    |    |                |    |    |    |    |    |    |    |                |      |    |                | **2,323**    |    |    | **(41**      | **)**        |                | **2,282**    |    |
| **Total recognized income and (expense) for the        year**                                                                      |    |                |    |    |                |    |    |    |    |    | **1,257**    |    |    | **1,066**    |    |    |      |    |    |    |    |    |    |    |                | **8,825**                |    |                | **11,148**   |    |    | **692**      |    |                | **11,840**   |    |
| **Transactions with shareholders**                                                                                                 |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    |    |    |                |    |    |
| Dividend distribution of Eni SpA (euro 0.70 per        share) in settlement of 2007 interim dividend of euro        0.60 per share |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    | 2,199        |    |                | (4,750                   | )            |                | (2,551       | )            |    |    |    |                | (2,551       | )            |
| Interim dividend distribution of Eni SpA (euro        0.65 per share)                                                              |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    | (2,359       | )            |                |                |    |                | (2,359       | )            |    |    |    |                | (2,359       | )            |
| Dividend distribution of other companies                                                                                           |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    | (297         | )            |                | (297         | )            |
| Payments by minority shareholders                                                                                                  |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    | 20           |    |                | 20           |    |
| Allocation of 2007 net profit                                                                                                      |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    | 5,261        |    |    |    |    |                | (5,261                   | )            |                |    |    |    |    |    |                |    |    |
| Shares repurchased                                                                                                                 |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    | (778                     | )            |    |    |    |    |    |    |                |                |    |                | (778         | )            |    |    |    |                | (778         | )            |
| Treasury shares sold under incentive plans for        Eni managers                                                                 |    |                |    |    |      |    |    | (20          | )            |    | 13           |    |    |    |    |    | 20                       |    |    | (1           | )            |    |    |    |                |                |    |                | 12           |    |    |    |    |                | 12           |    |
| Difference between the carrying amount and        strike price of stock options exercised by Eni managers                          |    |      |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    | 2            |    |    |    |    |                |                |    |                | 2            |    |    |    |    |                | 2            |    |
|                                                                                                                               |    |                |    |    |                |    |    | **(20**      | **)**        |    | **13**       |    |    |    |    |    | **(758**                 | **)**        |    | **5,262**    |    |    | **(160**     | **)**        |                | **(10,011**              | **)**        |                | **(5,674**   | **)**        |    | **(277**     | **)**        |                | **(5,951**   | **)**        |
| **Other changes in shareholders’ equity**                                                                                     |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    |    |    |                |    |         |
| Net effect related to the purchase of treasury        shares by Saipem SpA                                                         |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    | (31          | )            |                | (31          | )            |
| Cost related to stock option and stock grant                                                                                       |         |                |    |         |                |    |         |    |    |         |    |    |         |    |    |         |                |    |         | 18           |    |         |    |    |                     |                |    |                     | 18           |    |         |    |    |                     | 18           |    |
| Put option granted to Publigaz (the Distrigas        minority shareholder)                                                         |    |                |    |    |                |    |    |    |    |    | (1,495       | )            |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                | (1,495       | )            |    |    |    |                | (1,495       | )            |
| Minority interest recognized following the        acquisition of Distrigas NV and Hindustan Oil Exploration        Co Ltd          |    |                |    |    |                |    |    |    |    |    |    |    |    |    |    |    |                |    |    |    |    |    |    |    |                |                |    |                |    |    |    | 1,261        |    |                | 1,261        |    |
| Foreign currency translation differences on the        distribution of dividends and other changes                                 |    |                |    |    |                |    |    |    |    |    | (1           | )            |    | 198          |    |    |                |    |    | (186         | )            |    |    |    |                |                |    |                | 11           |    |    | (10          | )            |                | 1            |    |
|                                                                                                                               |    |                |    |    |                |    |    |    |    |    | **(1,496**   | **)**        |    | **198**      |    |    |                |    |    | **(168**     | **)**        |    |    |    |                |                |    |                | **(1,466**   | **)**        |    | **1,220**    |    |                | **(246**     | **)**        |
| **Balance at December 31, 2008**(Note 27)                                                                                          |    | **4,005**                |         |    | **959**                  |         |    | **7,187**    |         |    | **(1,140**   | **)**        |    | **(969**     | **)**        |    | **(6,757**               | **)**        |    | **34,685**   |         |    | **(2,359**   | **)**        |                | **8,825**                |         |                | **44,436**   |         |    | **4,074**    |         |                | **48,510**   |         |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

F-7

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##### Table of Contents

**CONSOLIDATED STATEMENT OFCASH FLOWS****(euro million)**

|   |   |    ** ****Note**** ** |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|------------------------------------------------|--------|----------|--------|----------|--------|----------|
|   |   |                                           |   |          |   |          |   |          |

| Net profit of the year                                                                                       |   |   |   | 9,823      |   |   | 10,809      |   |   | 9,558       |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|-------------|--------|--------|-------------|--------|
| Depreciation,        depletion and amortization                                                              |   | (31)   |   | 6,153      |   |   | 7,029       |   |   | 8,422       |   |
| Revaluations, net                                                                                            |   |   |   | (386       | )      |   | (494        | )      |   | 2,560       |   |
| Net change        in provisions for contingencies                                                            |   |   |   | (86        | )      |   | (122        | )      |   | 414         |   |
| Net change in the provisions for employee        benefits                                                    |   |   |   | 72         |   |   | (67         | )      |   | (8          | )      |
| Gain on        disposal of assets, net                                                                       |   |   |   | (59        | )      |   | (309        | )      |   | (219        | )      |
| Dividend income                                                                                              |   | (33)   |   | (98        | )      |   | (170        | )      |   | (510        | )      |
| Interest        income                                                                                       |   |   |   | (387       | )      |   | (603        | )      |   | (592        | )      |
| Interest expense                                                                                             |   |   |   | 346        |   |   | 523         |   |   | 809         |   |
| Exchange        differences                                                                                  |   |   |   | 6          |   |   | (119        | )      |   | (319        | )      |
| Income taxes                                                                                                 |   | (34)   |   | 10,568     |   |   | 9,219       |   |   | 9,692       |   |
| **Cash        generated from operating profit before changes in working        capital**                     |   |   |   | **25,952** |   |   | **25,696**  |   |   | **29,807**  |   |
| (Increase) decrease:                                                                                         |   |   |   |       |   |   |        |   |   |        |   |
| -        inventories                                                                                         |   |   |   | (953       | )      |   | (1,117      | )      |   | (801        | )      |
| - trade and other receivables                                                                                |   |   |   | (1,952     | )      |   | (655        | )      |   | (974        | )      |
| - other        assets                                                                                        |   |   |   | (315       | )      |   | (362        | )      |   | 162         |   |
| - trade and other payables                                                                                   |   |   |   | 2,146      |   |   | 360         |   |   | 2,318       |   |
| - other        liabilities                                                                                   |   |   |   | 50         |   |   | 107         |   |   | 1,507       |   |
| **Cash from operations**                                                                                     |   |   |   | **24,928** |   |   | **24,029**  |   |   | **32,019**  |   |
| Dividends        received                                                                                    |   |   |   | 848        |   |   | 658         |   |   | 1,150       |   |
| Interest received                                                                                            |   |   |   | 395        |   |   | 333         |   |   | 266         |   |
| Interest        paid                                                                                         |   |   |   | (294       | )      |   | (555        | )      |   | (852        | )      |
| Income taxes paid, net of tax receivables        received                                                    |   |   |   | (8,876     | )      |   | (8,948      | )      |   | (10,782     | )      |
| **Net        cash provided from operating activities**                                                       |   |   |   | **17,001** |   |   | **15,517**  |   |   | **21,801**  |   |
| *- of which with related parties*                                                                            |   | (37)   |   | *2,206*    |   |   | *549*       |   |   | *(62*       | *)*    |
| Investing        activities:                                                                                 |   |   |   |       |   |   |        |   |   |        |   |
| - tangible assets                                                                                            |   | (8)    |   | (5,963     | )      |   | (8,364      | )      |   | (12,082     | )      |
| -        intangible assets                                                                                   |   | (11)   |   | (1,870     | )      |   | (2,229      | )      |   | (2,480      | )      |
| - consolidated subsidiaries and businesses                                                                   |   |   |   | (46        | )      |   | (4,759      | )      |   | (3,634      | )      |
| -        investments                                                                                         |   | (12)   |   | (42        | )      |   | (4,890      | )      |   | (385        | )      |
| - securities                                                                                                 |   |   |   | (49        | )      |   | (76         | )      |   | (152        | )      |
| -        financing receivables                                                                               |   |   |   | (516       | )      |   | (1,646      | )      |   | (710        | )      |
| - change in payables and receivables in relation        to capital expenditures and capitalized depreciation |   |   |   | (26        | )      |   | 185         |   |   | 367         |   |
| **Cash        flow from investments**                                                                        |   |   |   | **(8,512** | **)**  |   | **(21,779** | **)**  |   | **(19,076** | **)**  |
| Disposals:                                                                                                   |   |   |   |       |   |   |        |   |   |        |   |
| - tangible        assets                                                                                     |   |   |   | 231        |   |   | 165         |   |   | 318         |   |
| - intangible assets                                                                                          |   |   |   | 18         |   |   | 35          |   |   | 2           |   |
| -        consolidated subsidiaries and businesses                                                            |   |   |   | 8          |   |   | 56          |   |   | 149         |   |
| - investments                                                                                                |   |   |   | 36         |   |   | 403         |   |   | 510         |   |
| -        securities                                                                                          |   |   |   | 382        |   |   | 491         |   |   | 145         |   |
| - financing receivables                                                                                      |   |   |   | 794        |   |   | 545         |   |   | 1,293       |   |
| *-*change        in payables and receivables in relation to disposals                                        |   |   |   | (8         | )      |   | (13         | )      |   | (299        | )      |
| **Cash flow from disposals**                                                                                 |   |   |   | **1,461**  |   |   | **1,682**   |   |   | **2,118**   |   |
| **Net        cash used in investing activities****(*)**                                                      |   |   |   | **(7,051** | **)**  |   | **(20,097** | **)**  |   | **(16,958** | **)**  |
| *- of which with related parties*                                                                            |   | (37)   |   | *(686*     | *)*    |   | *(822*      | *)*    |   | *(1,598*    | *)*    |

|   |   |   |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|

F-8

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##### Table of Contents

**CONSOLIDATED STATEMENT OFCASH FLOWS*****continued*****(euro million)**

|   |   |    ** ****Note**** ** |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|------------------------------------------------|--------|----------|--------|----------|--------|----------|
|   |   |                                           |   |          |   |          |   |          |

| Proceeds from long-term debt                                                                                      |   |   |   | 2,888      |   |   | 6,589      |   |   | 3,774      |   |
|-------------------------------------------------------------------------------------------------------------------|--------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Repayments        of long-term debt                                                                               |   |   |   | (2,621     | )      |   | (2,295     | )      |   | (2,104     | )      |
| Increase (decrease) in short-term debt                                                                            |   |   |   | (949       | )      |   | 4,467      |   |   | (690       | )      |
|                                                                                                              |   |   |   | **(682**   | **)**  |   | **8,761**  |   |   | **980**    |   |
| Net capital contributions by minority        shareholders                                                         |   |   |   | 22         |   |   | 1          |   |   | 20         |   |
| Net        acquisition of treasury shares different from Eni SpA                                                  |   |   |   | (477       | )      |   | (340       | )      |   | (50        | )      |
| Acquisition of additional interests in        consolidated subsidiaries                                           |   |   |   | (7         | )      |   | (16        | )      |   |       |   |
| Sale of        additional interests in consolidated subsidiaries                                                  |   |   |   | 35         |   |   |       |   |   |       |   |
| Dividends paid to Eni’s shareholders                                                                         |   |   |   | (4,610     | )      |   | (4,583     | )      |   | (4,910     | )      |
| Dividends        paid to minority interest                                                                        |   |   |   | (222       | )      |   | (289       | )      |   | (297       | )      |
| Net purchase of treasury shares                                                                                   |   |   |   | (1,156     | )      |   | (625       | )      |   | (768       | )      |
| **Net        cash used in financing activities**                                                                  |   |   |   | **(7,097** | **)**  |   | **2,909**  |   |   | **(5,025** | **)**  |
| *- of which with related parties*                                                                                 |   | (37)   |   | *(57*      | *)*    |   | *20*       |   |   | *14*       |   |
| *Effect        of change in consolidation (inclusion/exclusion of        significant/insignificant subsidiaries)* |   |   |   | *(4*       | *)*    |   | *(40*      | *)*    |   | *(1*       | *)*    |
| *Effect of exchange rate changes on cash and        cash equivalents*                                             |   |   |   | *(197*     | *)*    |   | *(160*     | *)*    |   | *8*        |   |
| **Net        cash flow for the period**                                                                           |   |   |   | **2,652**  |   |   | **(1,871** | **)**  |   | **(175**   | **)**  |
| **Cash and cash equivalents - beginning of year**                                                                 |   | (1)    |   | **1,333**  |   |   | **3,985**  |   |   | **2,114**  |   |
| **Cash        and cash equivalents - end of year**                                                                |   | (1)    |   | **3,985**  |   |   | **2,114**  |   |   | **1,939**  |   |

|   |   |   |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|--------------|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (*)          |    | Net cash used        in investing activities included investments in certain        financial assets to absorb temporary surpluses of cash or        as part of our ordinary management of financing        activities. Due to their nature and the circumstance that        they are very liquid, these financial assets are netted        against finance debt in determining net borrowings. For        the definition of net borrowings, see "Item 5 –        Operating and Financial Review and Prospects".        Cash flows of such investments were as follows: |
|    |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |

| (euro million) |   |    ** ** |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|------------------------------|--------|----------|--------|----------|--------|----------|
|           |   |                         |   |          |   |          |   |          |

| Financing investments:                       |   |     |   |   |       |   |   |      |   |
|----------------------------------------------|--------|----------|--------|--------|------------|--------|--------|-----------|--------|
| -        securities                          |   | (44      | )      |   | (75        | )      |   | (74       | )      |
| - financing receivables                      |   | (134     | )      |   | (970       | )      |   | (99       | )      |
|                                         |   | **(178** | **)**  |   | **(1,045** | **)**  |   | **(173**  | **)**  |
| Disposal of financing investments:           |   |     |   |   |       |   |   |      |   |
| -        securities                          |   | 340      |   |   | 419        |   |   | 145       |   |
| - financing receivables                      |   | 54       |   |   | 147        |   |   | 939       |   |
|                                         |   | **394**  |   |   | **566**    |   |   | **1,084** |   |
| **Net cash flows from financing activities** |   | **216**  |   |   | **(479**   | **)**  |   | **216**   |   |

|   |   |   |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|

F-9

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##### Table of Contents

**SUPPLEMENTAL CASH FLOWINFORMATION****(euro million)**

|   |   |    **** |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|------------------------|--------|----------|--------|----------|--------|----------|
|   |   |                   |   |          |   |          |   |          |

| **Effect of investment of companies included in        consolidation and businesses** |   |    |   |   |      |   |   |      |   |
|---------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------|--------|--------|-----------|--------|
| Current        assets                                                                 |   | 68      |   |   | 398       |   |   | 1,938     |   |
| Non-current assets                                                                    |   | 130     |   |   | 5,590     |   |   | 7,442     |   |
| Net        borrowings                                                                 |   | 53      |   |   | 1         |   |   | 1,543     |   |
| Current and non-current liabilities                                                   |   | (92     | )      |   | (972      | )      |   | (3,598    | )      |
| **Net        effect of investments**                                                  |   | **159** |   |   | **5,017** |   |   | **7,325** |   |
| Minority interests                                                                    |   |    |   |   |      |   |   | (1,261    | )      |
| Fair value        of investments held before the acquisition of control               |   |    |   |   | (13       | )      |   | (601      | )      |
| Sale of unconsolidated entities controlled by        Eni                              |   | (60     | )      |   |      |   |   |      |   |
| **Purchase        price**                                                             |   | **99**  |   |   | **5,004** |   |   | **5,463** |   |
| less:                                                                                 |   |    |   |   |      |   |   |      |   |
| *Cash        and cash equivalents*                                                    |   | (53     | )      |   | (245      | )      |   | (1,829    | )      |
| **Cash flow on investments**                                                          |   | **46**  |   |   | **4,759** |   |   | **3,634** |   |
| **Effect        of disposal of consolidated subsidiaries and businesses**             |   |    |   |   |      |   |   |      |   |
| Current assets                                                                        |   | 9       |   |   | 73        |   |   | 277       |   |
| Non-current        assets                                                             |   | 1       |   |   | 20        |   |   | 299       |   |
| Net borrowings                                                                        |   | (1      | )      |   | 26        |   |   | (118      | )      |
| Current        and non-current liabilities                                            |   | (4      | )      |   | (94       | )      |   | (270      | )      |
| **Net effect of disposals**                                                           |   | **5**   |   |   | **25**    |   |   | **188**   |   |
| Gain on        disposal                                                               |   | 3       |   |   | 33        |   |   | 25        |   |
| Minority interest                                                                     |   |    |   |   |      |   |   | (1        | )      |
| **Selling        price**                                                              |   | **8**   |   |   | **58**    |   |   | **212**   |   |
| less:                                                                                 |   |    |   |   |      |   |   |      |   |
| *Cash        and cash equivalents*                                                    |   |    |   |   | (2        | )      |   | (63       | )      |
| **Cash flow on disposals**                                                            |   | **8**   |   |   | **56**    |   |   | **149**   |   |

|   |   |   |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|

**Transactions that did not produce cashflows**Acquisition of equity investments in exchange of businessescontribution:

| (euro million) |   |    **** |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|------------------------|--------|----------|--------|----------|--------|----------|
|           |   |                   |   |          |   |          |   |          |

| Current assets                              |   | 23      |   |   |   |   |
|---------------------------------------------|--------|---------|--------|--------|--------|--------|
| Non-current        assets                   |   | 213     |   |   | 38     |   |
| Net borrowings                              |   | (44     | )      |   | (4     | )      |
| Long-term        and short-term liabilities |   | (53     | )      |   |   |   |
| **Net effect of contribution**              |   | **139** |   |   | **34** |   |
| Minority        interest                    |   | (36     | )      |   |   |   |
| Gain on contribution                        |   | 18      |   |   |   |   |
| **Acquisition        of investments**       |   | **121** |   |   | **34** |   |

|   |   |   |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|

F-10

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##### Table of Contents

**Basis of presentation**

The Consolidated Financial Statements of Eni Group for theAnnual Report on Form 20-F have been prepared in accordance withInternational Financial Reporting Standards (IFRS) as issued bythe International Accounting Standards Board (IASB). Oil andnatural gas exploration and production activity is accounted forin conformity with internationally accepted accountingprinciples. Specifically, this concerns the determination of theamortization expenses using the unit-of-production method and therecognition of the production-sharing agreements and buy-backcontracts. The Consolidated Financial Statements have beenprepared on a historical cost basis except for certain items thatunder IFRS must be recognized at fair value as described in thesummary of significant accounting policies paragraph.

The Consolidated Financial Statements include the accounts ofEni SpA and the accounts of controlled subsidiary companies wherethe company holds the right to directly or indirectly exercisecontrol, determine financial and management decisions and obtaineconomic and financial benefits.

Immaterial subsidiaries are not consolidated. A subsidiary isgenerally considered to be immaterial when it does not exceed twoof the following three limits: (i) total assets or liabilities:euro 3,125 thousand; (ii) total revenues: euro 6,250 thousand;and (iii) average number of employees: 50 units. Moreover,companies for which consolidation does not produce significanteconomic and financial effects are not consolidated. These areusually entities acting as sole-operator in the management of oiland gas contracts on behalf of companies participating in a jointventure. These are financed proportionately based on a budgetapproved by the participating companies upon presentation ofperiodical reports of proceeds and expenses. Costs and revenuesand other operating data (production, reserves, etc.) of theproject, as well as the obligations arising from the project, arerecognized proportionally in the financial statements of thecompanies involved. The effects of these exclusions areimmaterial1.

Immaterial subsidiaries excluded from consolidation, jointlycontrolled entities, associates and other interests are accountedfor as described below under the item "Financial fixedassets".

Subsidiaries’ financial statements are audited by theindependent auditors who examine and certify also the informationrequired for the preparation of the Consolidated FinancialStatements.

The 2008 Consolidated Financial Statements approved byEni’s Board of Directors on March 13, 2009 were audited bythe independent auditor PricewaterhouseCoopers SpA (PwC). Theindependent auditor of Eni SpA, as the main auditor of the Group,is in charge of the auditing activities of the subsidiaries,unless this is incompatible with local laws, and, to the extentallowed under Italian legislation, of the work of otherindependent auditors.

Amounts in the notes to these financial statements areexpressed in millions of euros (euro million).

 

**Principles of consolidation**

**Interest in consolidated companies**Assets and liabilities, revenues and expenses related tofully consolidated subsidiaries are wholly incorporated in theConsolidated Financial Statements; the book value of interests inthese subsidiaries is eliminated against the corresponding shareof the shareholders’ equity by attributing to each of thebalance sheet items its fair value at the acquisition date.

When acquired, the net equity of controlled subsidiaries isinitially recognized at fair value. The excess of the purchaseprice of an acquired entity over the total fair value assigned toassets acquired and liabilities assumed is recognized asgoodwill; negative goodwill is recognized in the profit and lossaccount.

Equity and net profit of minority shareholders are included inspecific lines of the financial statements; this share of equityis determined using the fair value of assets and liabilities,excluding any related goodwill, at the time when control isacquired.

The purchase of additional ownership interests in subsidiariesfrom minority shareholders is recognized as goodwill andrepresents the excess of the amount paid over the carrying valueof the minority interest acquired.

Gains or losses associated with the sale of interests inconsolidated subsidiaries are reflected in the profit and lossaccount for the difference between proceeds from the sale and thedivested portion of net equity.

----

| (1) |    | According to        the requirements of the Framework of international        accounting standards, information is material if its        omission or misstatement could influence the economic        decisions that users make on the basis of the financial        statements. |
|-----|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

F-11

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**Inter-company transactions**Inter-company transactions, balances and unrealized gains ontransactions between group companies are eliminated. Unrealizedlosses are not eliminated since they are considered an impairmentindicator of the asset transferred.

**Foreign currency translation**Financial statements of foreign companies having a functionalcurrency other than euro are translated into the presentationcurrency using closing exchange rates for assets and liabilities,historical exchange rates for equity accounts and average ratesfor the period for the profit and loss account (source: Bank ofItaly).

Cumulative exchange differences resulting from thistranslation are recognized in shareholders’ equity under"Other reserves" in proportion to the group’sinterest and under "Minority interest" for the portionrelated to minority shareholders. Cumulative exchange differencesare charged to the profit and loss account when the investmentsare sold or the capital employed is repaid.

Financial statements of foreign subsidiaries which aretranslated into euro are denominated in the functional currenciesof the countries where the entities operate. The U.S. dollar isthe prevalent functional currency for the entities that do notadopt euro.

 

**Summary of significant accounting policies**

The most significant accounting policies used in thepreparation of the Consolidated Financial Statements aredescribed below.

**Current assets******Held for trading financial assets and available-for-salefinancial assets are measured at fair value with gains or lossesrecognized in the profit and loss account under "Financialincome (expense)" and as a component of equity within"Other reserves", respectively.

In the latter case, changes in fair value recognized undershareholders’ equity are charged to the profit and lossaccount when they are impaired or realized. The objectiveevidence that an impairment loss has occurred is verifiedconsidering, interalia, significant breaches of contracts,serious financial difficulties or the high probability ofinsolvency of the counterparty; asset write downs are included inthe carrying amount2.

Available-for-sale financial assets include financial assetsother than derivative financial instruments, loans andreceivables, held for trading financial assets, held-to-maturityfinancial assets and investments associated with a derivativefinancial instrument. The latter are stated at fair value witheffects of changes in fair value recognized in the profit andloss account rather than in shareholders’ equity (theso-called "fair value option") in order to ensure amatch with the recognition in the profit and loss account of thechanges in fair value of the derivative instrument3.

The fair value of financial instruments is determined bymarket quotations or, in their absence, by the value resultingfrom the adoption of suitable financial valuation models whichtake into account all the factors adopted by market operators andprices obtained in similar recent transactions in the market.Interests and dividends on financial assets stated at fair valuewith gains or losses reflected in the profit and loss account areaccounted for on an accrual basis as "Financial income(expense)" and "Income (expense) frominvestments", respectively. When the purchase or sale of afinancial asset under a contract whose terms require delivery ofthe asset within the time frame established generally byregulation or convention in the market place concerned, thetransaction is accounted for on the settlement date. Receivablesare carried at amortized cost (see item "Financial fixedassets" below). Transferred financial assets arederecognized when the contractual rights to receive the cashflows of the financial assets are transferred together with therisks and rewards of the ownership.

Inventories, including compulsory stocks and excludingcontract work in progress, are stated at the lower of purchase orproduction cost and net realizable value. Net realizable value isthe estimated selling price less the costs to sell. The cost forinventories of hydrocarbons (crude oil, condensates and naturalgas) and petroleum products is 

 

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| (2) |    | Amendments to        IAS 39 "Financial Instruments: Recognition and        Measurement" and to IFRS 7 "Financial        Instruments: Disclosures" that permit, with certain        criteria met, an entity to reclassify held for trading        and available-for-sale financial assets into financial        instruments valuated at cost or at amortized cost have        not produced any effect for Eni. |
|-----|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (3) |    | Regarding the        investment in OAO Gazprom Neft see Note 2 - Other        financial assets held for trading or available for sale.                                                                                                                                                                                                                                                                                            |

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determined by applying the weighted-average cost method on athree-month basis; the cost for inventories of the Petrochemicalsegment is determined by applying the weighted-average cost on anannual basis.

Contract work in progress is measured using the cost-to-costmethod whereby contract revenue is recognized based on the stageof completion as determined by the cost sustained. Advances arededucted from inventories within the limits of contractualconsiderations; any excess of such advances over the value of theinventories is recorded as a liability. Losses related toconstruction contracts are accrued for once the company becomesaware of such losses. Contract work in progress not yet invoiced,whose payment will be made in a foreign currency, is translatedto euro using the current exchange rates at year end and theeffect of rate changes is reflected in the profit and lossaccount.

Hedging instruments are described in the section"Derivative instruments".

**Non-current assets**

**Property, plant and equipment**4****Tangible assets, including investment properties, arerecognized using the cost model and stated at their purchase orself-construction cost including any costs directly attributableto bringing the asset into operation. In addition, when asubstantial period of time is required to make the asset readyfor use, the purchase price or self-construction cost includesthe borrowing costs incurred that could have otherwise been savedhad the investment not been made. In the case of a presentobligation for the dismantling and removal of assets and therestoration of sites, the carrying value includes, with acorresponding entry to a specific provision, the estimated(discounted) costs to be borne at the moment the asset isretired. Changes in estimate of the carrying amounts ofprovisions due to the passage of time and changes in discountrates are recognized under "Provisions forcontingencies"5.

Property, plant and equipment is not revalued for financialreporting purposes.

Assets carried under financial leasing or concerningarrangements that do not take the legal form of a finance leasebut substantially transfer all the risks and rewards of ownershipof the leased asset are recognized at fair value, net of taxesdue from the lessor or, if lower, at the present value of theminimum lease payments. Leased assets are included withinproperty, plant and equipment. A corresponding financial debtpayable to the lessor is recognized as a financial liability.These assets are depreciated using the criteria described below.When the renewal is not reasonably certain, leased assets aredepreciated over the shorter of the lease term and the estimateduseful life of the asset.

Expenditures on renewals, improvements and transformationswhich provide additional economic benefits are capitalized toproperty, plant and equipment.

Tangible assets, from the moment they begin or should begin tobe used, are depreciated systematically using a straight-linemethod over their useful life which is an estimate of the periodover which the assets will be used by the company. When tangibleassets are composed of more than one significant element withdifferent useful lives, each component is depreciated separately.The amount to be depreciated is represented by the book valuereduced by the estimated net realizable value at the end of theuseful life, if it is significant and can be reasonablydetermined. Land is not depreciated, even when purchased with abuilding. Tangible assets held for sale are not depreciated butare valued at the lower of book value and fair value less costsof disposal.

Assets that can be used free of charge by third parties aredepreciated over the shorter term of the duration of theconcession and the useful life of the asset.

Replacement costs of identifiable components in complex assetsare capitalized and depreciated over their useful life; theresidual book value of the component that has been substituted ischarged to the profit and loss account. Expenditures for ordinarymaintenance and repairs are expensed as incurred.

The carrying value of property, plant and equipment isreviewed for impairment whenever events indicate that thecarrying amounts for those assets may not be recoverable. Therecoverability of an asset is assessed by comparing its carryingvalue with the recoverable amount represented by the higher offair value less costs to sell 

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| (4) |    | Recognition        and evaluation criteria of exploration and production        activities are described in the section "Exploration        and production activities" below.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|-----|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (5) |    | The company        recognizes material provisions for the retirement of        assets in the Exploration & Production business. No        significant asset retirement obligations associated with        any legal obligations to retire refining, marketing and        transportation (downstream) and chemical long-lived        assets are generally recognized, as undetermined        settlement dates for asset retirements do not allow a        reasonable estimate of the fair value of the associated        retirement obligation. The company performs periodic        reviews of its downstream and chemical long-lived assets        for any changes in facts and circumstances that might        require recognition of a retirement obligation. |

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and value in use. If there is no binding sales agreement, fairvalue is estimated on the basis of market values, recenttransactions, or the best available information that shows theproceeds that the company could reasonably expect to collect fromthe disposal of the asset. Value in use is the present value ofthe future cash flows expected to be derived from the use of theasset and, if significant and reasonably determinable, the cashflows deriving from its disposal at the end of its useful life,net of disposal costs. Cash flows are determined on the basis ofreasonable and documented assumptions that represent the bestestimate of the future economic conditions during the remaininguseful life of the asset, giving more importance to independentassumptions. Oil, natural gas and petroleum products prices (andto prices for products which derive therefrom) used to quantifythe expected future cash flows are estimated based on forwardprices prevailing in the marketplace for the first four years andmanagement’s long-term planning assumptions thereafter.Discounting is carried out at a rate that reflects a currentmarket valuation of the time value of money and of those specificrisks of the asset that are not reflected in the estimate of thefuture cash flows. In particular, the discount rate used is theWeighted Average Cost of Capital (WACC) adjusted for the specificcountry risk of the activity.

The evaluation of the specific country risk to be included inthe discount rate is provided by external parties. WACC differsconsidering the risk associated with individual operatingsegments; in particular for the assets belonging to the Gas &Power and Engineering & Construction segments, taking intoaccount the different risk compared with Eni, specific WACC rateshave been defined (for Gas & Power segment on the basis of asample of companies operating in the same segment; forEngineering & Construction segment on the basis of the marketquotation); WACC used for impairments in the Gas & Powersegment is adjusted to take into consideration the risk premiumof the specific country of the activity while WACC used forimpairments in the Engineering & Construction segment isnot adjusted for country risk as most of the company assets arenot located in a specific country. For the regulated activities,the discount rate to use for the measurement of value in use isequal to the rate of return defined by the Regulator. For theother segments, a single WACC is used considering that the riskis the same to that of Eni as a whole. Value in use is calculatednet of the tax effect as this method results in values similar tothose resulting from discounting pre-tax cash flows at a pre-taxdiscount rate deriving, through an iteration process, from apost-tax valuation. Valuation is carried out for each singleasset or, if the realizable value of a single asset cannot bedetermined, for the smallest identifiable group of assets thatgenerates independent cash inflows from their continuous use, theso-called "cash generating unit". When the reasons fortheir impairment cease to exist, Eni makes a reversal that isrecognized in profit and loss account as income from assetrevaluation. This reversed amount cannot exceed the carryingamount that would have been determined, net of depreciation, hadno impairment loss been recognized for the asset in prior years.

**Intangible assets**Intangible assets are assets without physical substance,controlled by the company and able to produce future economicbenefits, and goodwill acquired in business combinations. Anasset is classified as intangible when management is able todistinguish it clearly from goodwill. This condition is normallymet when: (i) the intangible asset arises from contractual orlegal rights, or (ii) the asset is separable, i.e. can be sold,transferred, licensed, rented or exchanged, either individuallyor as an integral part of other assets. An entity controls anasset if it has the power to obtain the future economic benefitsgenerated by the underlying asset and to restrict the access ofothers to those cash flows.

Intangible assets are initially stated at cost as determinedby the criteria used for tangible assets and they are notrevalued for financial reporting purposes.

Intangible assets with a definite useful life are amortizedsystematically over their useful life estimated as the periodover which the assets will be used by the company; the amount tobe amortized and the recoverability of the carrying amount areverified in accordance with the criteria described in the section"Property, plant and equipment".

Goodwill and other intangible assets with an indefinite usefullife are not amortized. The recoverability of their carryingvalue is reviewed at least annually and whenever events orchanges in circumstances indicate that the carrying value may notbe recoverable. Goodwill is tested for impairment at the level ofthe smallest aggregate on which the company, directly orindirectly, evaluates the return on the capital expenditure towhich goodwill relates. When the carrying amount of the cashgenerating unit, including goodwill allocated thereto, exceedsthe cash generating unit’s recoverable amount, the excess isrecognized as impairment. The impairment loss is first allocatedto reduce the carrying amount of goodwill; any remaining excessto be allocated to the assets of the unit is applied 

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pro-rata on the basis of the carrying amount of each asset inthe unit. Impairment charges against goodwill are not reversed6.Negative goodwill is recognized in the profit and loss account.

Costs of technological development activities are capitalizedwhen: (i) the cost attributable to the development activity canbe reasonably determined; (ii) there is the intention,availability of funding and technical capacity to make the assetavailable for use or sale; and (iii) it can be demonstrated thatthe asset is able to generate future economic benefits.Intangible assets also include public to private serviceconcession arrangements in which: (i) the grantor controls orregulates what services the operator must provide with theinfrastructure, to whom it must provide them and at what price;and (ii) the grantor controls – through ownership,beneficial entitlement or otherwise – any significantresidual interest in the infrastructure at the end of the term ofthe arrangement. According to the terms of the agreements theoperator has the right to operate the infrastructure, controlledby the grantor, in order to provide the public service 7 8.

**Exploration and production activities**9

*Acquisition of mineral rights*Costs associated with the acquisition of mineral rights arecapitalized in connection with the assets acquired (such asexploratory potential, probable and possible reserves and provedreserves). When the acquisition is related to a set ofexploratory potential and reserves, the cost is allocated to thedifferent assets acquired on the basis of the value of therelevant discounted cash flows.

Expenditure for the exploratory potential, represented by thecosts for the acquisition of the exploration permits and for theextension of existing permits, is recognized under"Intangible assets" and is amortized on a straight-linebasis over the period of the exploration as contractuallyestablished. If the exploration is abandoned, the residualexpenditure is charged to the profit and loss account.

Acquisition costs for proved reserves and for possible andprobable reserves are recognized in the balance sheet as assets.

Costs associated with proved reserves are amortized on a UOPbasis, as detailed in the section "Development",considering both developed and undeveloped reserves. Expendituresassociated with possible and probable reserves are not amortizeduntil classified as proved reserves; in case of a negativeresult, the costs are charged to the profit and loss account.

*Exploration*Costs associated with exploratory activities for oil and gasproducing properties incurred both before and after theacquisition of mineral rights (such as acquisition of seismicdata from third parties, test wells and geophysical surveys) areinitially capitalized in order to reflect their nature as aninvestment and subsequently amortized in full when incurred.

*Development*Development costs are those costs incurred to obtain accessto proved reserves and to provide facilities for extracting,gathering and storing oil and gas. They are capitalized withinproperty, plant and equipment and amortized generally on a UOPbasis, as their useful life is closely related to theavailability of feasible reserves. This method provides forresidual costs at the end of each quarter to be amortized at arate representing the ratio between the volumes extracted duringthe quarter and the proved developed reserves existing at the endof the quarter, increased by the volumes extracted during thequarter. This method is applied with reference to the smallestaggregate representing a direct correlation between investmentsand proved developed reserves.

Costs related to unsuccessful development wells or damagedwells are expensed immediately as losses on disposal. Impairmentsand reversal of impairments of development costs are made on thesame basis as those for tangible assets.

 

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| (6) |    | Impairment        charges recognized in an interim period are not reversed        also when, considering conditions existing in a        subsequent interim period, they would have been        recognized in a smaller amount or would not have been        recognized.                                                                                                                                                                                                |
|-----|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (7) |    | When the        operator has a unconditional contractual right to riceive        cash or another financial asset from or at the direction        of the grantor, considerations received or receivable by        the operator for construction or upgrade of the        infrastructure are recognized as a financial asset.                                                                                                                                             |
| (8) |    | The        accounting policy for service concession arrangement has        been defined according to IFRIC 12 "Service        concession arrangements" (IFRIC 12); the application        of IFRIC 12 has determined for 2007 the reclassification        of euro 3,218 million from the line item "Property,        plant and equipment" to "Intangible        assets"; the effects on profit and loss accounts are        not material. |
| (9) |    | IFRS do not        establish specific criteria for hydrocarbon exploration        and production activities. Eni continues to use existing        accounting policies for exploration and evaluation assets        previously applied before the introduction of IFRS 6        "Exploration for and evaluation of mineral        resources".                                                                                                                  |

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*Production*Production costs are those costs incurred to operate andmaintain wells and field equipment and are expensed as incurred.

*Production-sharing agreements and buy-back contracts*Oil and gas reserves related to production-sharing agreementsand buy-back contracts are determined on the basis of contractualclauses related to the repayment of costs incurred for theexploration, development and production activities executedthrough the use of company’s technologies and financing(cost oil) and the company’s share of production volumes notdestined to cost recovery (profit oil). Revenues from the sale ofthe production entitlements against both cost oil and profit oilare accounted for on an accrual basis whilst exploration,development and production costs are accounted for according tothe policies mentioned above.

The company’s share of production volumes and reservesrepresenting the profit oil includes the share of hydrocarbonswhich corresponds to the taxes to be paid, according to thecontractual agreement, by the national government on the behalfof the company. As a consequence, the company has to recognize atthe same time an increase in the taxable profit, through theincrease of the revenues, and a tax expense.

*Retirement*Costs expected to be incurred with respect to the retirementof a well, including costs associated with removal of productionfacilities, dismantlement and site restoration, are capitalizedand amortized on a UOP basis, consistent with the policydescribed under "Property, plant and equipment".

**Grants**Grants related to assets are recorded as a reduction ofpurchase price or production cost of the related assets whenthere is reasonable assurance that all the required conditionsattached to them, agreed upon with government entities, have beenmet. Grants not related to capital expenditure are recognized inthe profit and loss account.

**Financial fixed assets**

*Investments*Investments in subsidiaries excluded from consolidation,jointly controlled entities and associates are accounted forusing the equity method10. Subsidiaries, jointventures and associates excluded from consolidation are accountedfor at cost, adjusted for impairment losses if this does notresult in a misrepresentation of the company’s financialcondition. When the reasons for their impairment cease to exist,investments accounted for at cost are re-valued within the limitof the impairment made and their effects are included in"Other income (expense) from investments".

Other investments, included in non current assets, arerecognized at their fair value and their effects are included inshareholders’ equity under "Other reserves"; thisreserve is charged to the profit and loss account when it isimpaired or realized. When investments are not traded in a publicmarket and fair value cannot be reasonably determined,investments are accounted for at cost, adjusted for impairmentlosses; impairment losses may not be reversed11.

The risk deriving from losses exceeding shareholders’equity is recognized in a specific provision to the extent theparent company is required to fulfill legal or implicitobligations towards the subsidiary or to cover its losses.

*Receivables and financial assets to be held to maturity*Receivables and financial assets to be held to maturity arestated at cost represented by the fair value of the initialexchanged amount adjusted to take into account direct externalcosts related to the transaction (e.g. fees of agents orconsultants, etc.). The initial carrying value is then adjustedto take into account capital repayments, devaluations andamortization of the difference between the reimbursement valueand the initial carrying value. Amortization is carried out onthe basis of the effective internal rate of return represented bythe rate that equalizes, at the moment of the initialrevaluation, the current value of expected cash flows to theinitial carrying value (so-called amortized cost method). Anyimpairment is recognized by comparing the carrying value with thepresent value of the expected cash flows discounted at theeffective interest rate defined at the initial recognition, or atthe 

 

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| (10) |    | In the case        of step acquisition of a significant influence (or joint        control), the investment is recognized at the acquisition        date of significant influence (joint control) at the        amount deriving from the use of the equity method        assuming the adoption of this method since initial        acquisition; the "step-up" of the carrying        amount of interests owned before the acquisition of        significant influence (joint control) is taken to equity. |
|------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (11) |    | Impairment        charges recognised in an interim period are not reversed        also when, considering conditions existing in a        subsequent interim period, they would have been        recognized in a smaller amount or would not have been        recognized. |
|------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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moment of its updating to reflect re-pricings contractuallyestablished. Receivables and financial assets to be held tomaturity are recognized net of the allowance for impairmentlosses; when the impairment loss is definite the excess allowancefor impairment losses is reversed. Changes to the carrying amountof receivables or financial assets in accordance with theamortized cost method are recognized as "Financial income(expense)".

**Financial liabilities**Debt is carried at amortized cost (see item "Financialfixed assets" above).

**Provisions for contingencies**Provisions for contingencies are liabilities for risks andcharges of a definite nature and whose existence is certain orprobable but for which at year-end the timing or amount of futureexpenditure is uncertain. Provisions are recognized when: (i)there is a current obligation (legal or constructive) as a resultof a past event; (ii) it is probable that the settlement of thatobligation will result in an outflow of resources embodyingeconomic benefits; and (iii) the amount of the obligation can bereliably estimated. The amount recognized as a provision is thebest estimate of the expenditure required to settle the presentobligation at the balance sheet date or to transfer it to thirdparties at that time. If the effect of the time value ismaterial, and the payment date of the obligations can bereasonably estimated, provisions to be accrued are the presentvalue of the expenditures expected to be required to settle theobligation at a discount rate that reflects the company’saverage borrowing rate taking into account the risks associatedwith the obligation. The increase in the provision due to thepassage of time is recognized as "Financial income(expense)".

When the liability regards a tangible asset (e.g. siterestoration and abandonment), the provision is stated with acorresponding entry to the asset to which it refers; charges tothe profit and loss account charge are made with the amortizationprocess.

Costs that the company expects to bear in order to carry outrestructuring plans are recognized when the company formallydefines the plan and the interested parties have developed thereasonable expectation that the restructuring will happen.

Provisions are periodically updated to show the variations ofestimates of costs, production times and actuarial rates; theestimated revisions to the provisions are recognized in the sameprofit and loss account item that had previously held theprovision, or, when the liability regards tangible assets (i.e.site restoration and abandonment) with a corresponding entry tothe assets to which they refer.

In the notes to the consolidated financial statements thefollowing potential liabilities are described: (i) possible, butnot probable obligations deriving from past events, whoseexistence will be confirmed only when one or more future eventsbeyond the company’s control occur; and (ii) currentobligations deriving from past events whose amount cannot bereasonably estimated or whose fulfillment will probably notresult in an outflow of resources embodying economic benefits.

**Employee benefits**Post-employment benefit plans, including constructiveobligations, are classified as either defined contribution plansor defined benefit plans depending on the economic substance ofthe plan as derived from its principal terms and conditions. Inthe first case, the company’s obligation, which consists ofmaking payments to the State or a trust or a fund, is determinedon the basis of contributions due.

The liabilities related to defined benefit plans, net of anyplan assets, are determined on the basis of actuarial assumptionsand charged on an accrual basis during the employment periodrequired to obtain the benefits.

The actuarial gains and losses of defined benefit plans arerecognized pro-rata on service, in the profit and loss accountusing the corridor method, if and to the extent that netcumulative actuarial gains and losses unrecognized at the end ofthe previous reporting period exceed the greater of 10% of thepresent value of the defined benefit obligation and 10% of thefair value of the plan assets, over the expected averageremaining working lives of the employees participating to theplan.

Such actuarial gains and losses derive from changes in theactuarial assumptions used or from a change in the conditions ofthe plan.

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Obligations for long-term benefits are determined by adoptingactuarial assumptions; the effect of changes in actuarialassumptions or a change in the characteristics of the benefit aretaken to profit or loss in their entirety.

**Treasury shares**Treasury shares are recorded at cost and as a reduction ofequity. Gains resulting from subsequent sales are recorded inequity.

**Revenues and costs**Revenues associated with sales of products and services arerecorded when significant risks and rewards of ownership pass tothe customer or when the transaction can be considered settledand associated revenue can be reliably measured. In particular,revenues are recognized for the sale of:

- crude oil, generally upon shipment;
- natural gas, upon delivery to the customer;
- petroleum products sold to retail distribution networks,        generally upon delivery to the service stations, whereas        all other sales are generally recognized upon shipment;
- chemical products and other products, generally upon        shipment.

Revenues are recognized upon shipment when, at that date,significant risks are transferred to the buyer. Revenues fromcrude oil and natural gas production from properties in which Enihas an interest together with other producers are recognized onthe basis of Eni’s net working interest in those properties(entitlement method). Differences between Eni’s net workinginterest volume and actual production volumes are recognized atcurrent prices at year end.

Income related to partially rendered services is recognized inthe measurement of accrued income if the stage of completion canbe reliably determined and there is no significant uncertainty asto the collectability of the amount and the related costs. Whenthe outcome of the transaction cannot be estimated reliably,revenue is recognized only to the extent of the expensesrecognized that are recoverable.

Revenues accrued in the year related to construction contractsare recognized on the basis of contractual revenues withreference to the stage of completion of a contract measured onthe cost-to-cost basis12.

Requests of additional revenues, deriving from a change in thescope of work, are included in the total amount of revenues whenit is probable that the customer will approve the variation andthe related amount; claims deriving from additional costsincurred for reasons attributable to the client are included inthe total amount of revenues when it is probable that thecounterparty will accept them.

Revenues are stated net of returns, discounts, rebates,bonuses and direct taxation. The exchange of goods and servicesof a similar nature and value do not give rise to revenues andcosts as they do not represent sale transactions.

Costs are recorded when the related goods and services aresold, consumed or allocated, or when their future benefits cannotbe determined. Costs associated with emission quotas, determinedon the basis of the average prices of the main European marketsat period end, are reported in relation to the amount of thecarbon dioxide emissions that exceed the amount assigned; relatedrevenues are recognized upon sale. Costs related to the purchaseof the emission rights are taken to intangible assets net of anynegative difference between the amount of emissions and thequotas assigned.

Operating lease payments are recognized in the profit and lossaccount over the length of the contract.

Labor costs include stock grants and stock options granted tomanagers, consistent with their actual remunerative nature. Theinstruments granted are recorded at fair value on the vestingdate and are not subject to subsequent adjustments; the currentportion is calculated pro-rata over the vesting period13.Fair value of stock options is determined using valuationtechniques which consider conditions related to the exercise ofoptions, current share prices, expected volatility and therisk-free interest rate. The fair value of the stock grants andstock options is recorded as a charge to "Otherreserves".

 

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| (12) |    | For service        concession arrangements in which customers fees do not        provide a distinction compensation for        construction/update of the infrastructure and        compensation for operating it and in the absence of        external benchmarks which could be used to determine the        respective fair value of these two items, revenues        recognised during the construction phase are limited to        the amount of the costs incurred. |
|------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (13) |    | For stock        grants, the period between the date of the award and the        date of assignation of stock; for stock options, the        period between the date of the award and the date at        which the option can be exercised. |
|------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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The costs for the acquisition of new knowledge or discoveries,the study of products or alternative processes, new techniques ormodels, the planning and construction of prototypes or, in anycase, costs borne for other scientific research activities ortechnological development, which cannot be capitalized, areincluded in the profit and loss account.

**Exchange rate differences**Revenues and costs associated with transactions in currenciesother than the functional currency are translated into thefunctional currency by applying the exchange rate at the date ofthe transaction.

Monetary assets and liabilities denominated in currenciesother than the functional currency are converted by applying theyear end exchange rate and the effect is stated in the profit andloss account. Non-monetary assets and liabilities denominated incurrencies other than the functional currency valued at cost aretranslated at the initial exchange rate; non-monetary assets thatare re-measured to fair value, recoverable amount or realizablevalue are translated at the exchange rate applicable at the dateof re-measurement.

**Dividends**Dividends are recognized at the date of the generalShareholders’ Meeting in which they were declared, exceptwhen the sale of shares before the ex-dividend date is certain.

**Income taxes**Current income taxes are determined on the basis of estimatedtaxable income. The estimated liability is included in"Income tax payables". Current tax assets andliabilities are measured at the amount expected to be paid to(recovered from) the tax authorities, using tax laws that havebeen enacted or substantively enacted at the balance sheet dateand the tax rates estimated on an annual basis. Deferred taxassets or liabilities are provided on temporary differencesarising between the carrying amounts of the assets andliabilities and their tax bases, based on tax rates (tax laws)that have been enacted or substantively enacted for future years.Deferred tax assets are recognized when their realization isconsidered probable. Deferred tax assets and liabilities areincluded in non-current assets and liabilities and are offset ata single entity level if related to offsettable taxes. Thebalance of the offset, if positive, is recognized in the item"Deferred tax assets"; if negative, in the item"Deferred tax liabilities". When the results oftransactions are recognized directly in shareholders’equity, current taxes, deferred tax assets and liabilities arealso charged to the shareholders’ equity.

**Derivatives**

Derivatives, including embedded derivatives which areseparated from the host contract, are assets and liabilitiesrecognized at their fair value which is estimated by using thecriteria described in the section "Current assets".When there is objective evidence that an impairment loss hasoccurred (see "Current assets" paragraph) derivativesare recognized net of the allowance for impairment losses.

Derivatives are classified as hedging instruments when therelationship between the derivative and the subject of the hedgeis formally documented and the effectiveness of the hedge is highand is checked periodically. When hedging instruments cover therisk of variation of the fair value of the hedged item (fairvalue hedge, e.g. hedging of the variability of the fair value offixed interest rate assets/liabilities) the derivatives arestated at fair value and the effects charged to the profit andloss account. Hedged items are consistently adjusted to reflectthe variability of fair value associated with the hedged risk.When derivatives hedge the cash flow variation risk of the hedgeditem (cash flow hedge, e.g. hedging the variability on the cashflows of assets/liabilities as a result of the fluctuations ofexchange rate), changes in the fair value of the derivativesconsidered effective are initially stated in equity and thenrecognized in the profit and loss account consistent with theeconomic effects produced by the hedged transaction. The changesin the fair value of derivatives that do not meet the conditionsrequired to qualify for hedge accounting are shown in the profitand loss account.

Economic effects of transactions, which relate to purchase orsales contracts for commodities entered into to meet theentity’s normal operating requirements and for which thesettlement is provided with the delivery of the goods, arerecognized on an accrual basis (the so-called normal sale andnormal purchase exemption or own use exemption).

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**Financial statements**Assets and liabilities of the balance sheet are classified ascurrent and non-current. Items of the profit and loss account arepresented by nature14.

The statement of changes in shareholders’ equity includesprofit and loss for the year, transactions with shareholders andother changes in shareholders’ equity.

The statement of cash flows is presented using the indirectmethod, whereby net profit is adjusted for the effects ofnon-cash transactions.

 

**Use of accounting estimates**

The company’s Consolidated Financial Statements areprepared in accordance with IFRS. These require the use ofestimates and assumptions that affect the assets, liabilities,revenues and expenses reported in the financial statements, aswell as amounts included in the notes thereto, includingdiscussion and disclosure of contingent liabilities. Estimatesmade are based on complex or subjective judgments and pastexperience of other assumptions deemed reasonable inconsideration of the information available at the time. Theaccounting policies and areas that require the most significantjudgments and estimates to be used in the preparation of theConsolidated Financial Statements are in relation to theaccounting for oil and natural gas activities, specifically inthe determination of proved reserves, impairment of fixed assets,intangible assets and goodwill, asset retirement obligations,business combinations, pensions and other post-retirementbenefits, recognition of environmental liabilities andrecognition of revenues in the oilfield services construction andengineering businesses. Although the company uses its bestestimates and judgments, actual results could differ from theestimates and assumptions used. A summary of significantestimates follows.

**Oil and gas activities**Engineering estimates of the Company’s oil and gasreserves are inherently uncertain. Proved reserves are theestimated volumes of crude oil, natural gas and gas condensates,liquids and associated substances which geological andengineering data demonstrate can be produced with reasonablecertainty to be recoverable in future years from known reservoirsunder existing economic and operating conditions. Although thereare authoritative guidelines regarding the engineering criteriathat must be met before estimated oil and gas reserves can bedesignated as "proved", the accuracy of any reserveestimate is a function of the quality of available data andengineering and geological interpretation and judgment.

Field reserves will only be categorized as proved when all thecriteria for attribution of proved status have been met. At thisstage, all booked reserves will be classified as provedundeveloped. Volumes will subsequently be reclassified fromproved undeveloped to proved developed as a consequence ofdevelopment activity. The first proved developed bookings willoccur at the point of first oil or gas production. Majordevelopment projects typically take one to four years from thetime of initial booking to the start of production. Enireassesses its estimate of proved reserves periodically. Theestimated proved reserves of oil and natural gas may be subjectto future revision and upward and downward revision may be madeto the initial booking of reserves due to production, reservoirperformance, commercial factors, acquisition and divestmentactivity and additional reservoir development activity. Inparticular, changes in oil and natural gas prices could impactthe amount of Eni’s proved reserves as regards the initialestimate and, in the case of Production-sharing agreements andbuy-back contracts, the share of production and reserves to whichEni is entitled. Accordingly, the estimated reserves could bematerially different from the quantities of oil and natural gasthat ultimately will be recovered.

Oil and natural gas reserves have a direct impact on certainamounts reported in the Consolidated Financial Statements.Estimated proved reserves are used in determining depreciationand depletion expenses and impairment expense.

Depreciation rates on oil and gas assets using the UOP basisare determined from the ratio between the amount of hydrocarbonsextracted in the quarter and proved developed reserves existingat the end of the quarter increased by the amounts extractedduring the quarter.

Assuming all other variables are held constant, an increase inestimated proved developed reserves for each field decreasesdepreciation, depletion and amortization expense. Conversely, adecrease in estimated proved 

 

----

| (14) |    | Further        information on financial instruments as classified in        accordance with IFRS is provided in Note 29 - Guarantees,        commitments and risks "Other information about        financial instruments". |
|------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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developed reserves increases depreciation, depletion andamortization expense. In addition, estimated proved reserves areused to calculate future cash flows from oil and gas properties,which serve as an indicator in determining whether or notproperty impairment is to be carried out. The larger the volumeof estimated reserves, the lower the likelihood of assetimpairment.

**Impairment of assets**Eni assesses its tangible assets and intangible assets,including goodwill, for possible impairment if there are eventsor changes in circumstances that indicate the carrying values ofthe assets are not recoverable.

Such indicators include changes in the Group’s businessplans, changes in commodity prices leading to unprofitableperformance, a reduced utilization of the plants and, for oil andgas properties, significant downward revisions of estimatedproved reserve quantities or significant increase of theestimated development costs. Determination as to whether and howmuch an asset is impaired involves management estimates on highlyuncertain matters such as future commodity prices, the effects ofinflation and technology improvements on operating expenses,production profiles and the outlook for global or regional marketsupply and demand conditions for crude oil, natural gas,commodity chemicals and refined products.

The amount of an impairment loss is determined by comparingthe book value of an asset with its recoverable amount. Therecoverable amount is the greater of fair value net of disposalcosts and value in use. The estimated value in use is based onthe present values of expected future cash flows net of disposalcosts. The expected future cash flows used for impairment reviewsare based on judgmental assessments of future production volumes,prices and costs, considering available information at the dateof review and are discounted by using a rate related to theactivity involved.

For oil and natural gas properties, the expected future cashflows are estimated principally based on developed andnon-developed proved reserves including, among other elements,production taxes and the costs to be incurred for the reservesyet to be developed. The estimated future level of production isbased on assumptions concerning: future commodity prices, liftingand development costs, field decline rates, market demand andsupply, economic regulatory climates and other factors.

Oil, natural gas and petroleum products prices used toquantify the expected future cash flows are estimated based onforward prices prevailing in the marketplace for the first fouryears and management’s long-term planning assumptionsthereafter. The estimate of the future amount of production isbased on assumptions related to the commodity future prices,lifting and development costs, market demand and to otherfactors. The discount rate reflects the current market valuationof the time value of money and of the specific risks of the assetnot reflected in the estimate of the future cash flows.

Goodwill and other intangible assets with an indefinite usefullife are not subject to amortization. The company tests suchassets at the cash-generating unit level for impairment on anannual basis and between annual tests if an event occurs orcircumstances change that would more likely than not reduce thefair value below its carrying amount. In particular, goodwillimpairment is based on the determination of the fair value ofeach cash-generating unit to which goodwill can be attributed ona reasonable and consistent basis. A cash generating unit is thesmallest aggregate on which the company, directly or indirectly,evaluates the return on the capital expenditure. If therecoverable amount of a cash generating unit is lower than thecarrying amount, goodwill attributed to that cash generating unitis impaired up to that difference; if the carrying amount ofgoodwill is less than the amount of impairment, assets of thecash generating unit are impaired on a pro-rata basis for theresidual difference.

**Asset retirement obligations**Obligations to remove tangible equipment and restore land orseabed require significant estimates in calculating the amount ofthe obligation and determining the amount required to be recordedpresently in the consolidated financial statements. Estimatingfuture asset retirement obligations is complex. It requiresmanagement to make estimates and judgments with respect toremoval obligations that will come to term many years into thefuture and contracts and regulations are often unclear as to whatconstitutes removal. In addition, the ultimate financial impactof environmental laws and regulations is not always clearly knownas asset removal technologies and costs constantly evolve in thecountries where Eni operates, as do political, environmental,safety and public expectations. The subjectivity of theseestimates is also increased by the accounting method used thatrequires entities to record the fair value of a liability for anasset retirement obligation in the period when it is incurred(typically, at the time the asset is installed at the productionlocation). When liabilities are initially recorded, the relatedfixed assets are increased by an equal corresponding amount. Theliabilities are increased with the passage of time (i.e. interest

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accretion) and any change in the estimates following themodification of future cash flows and discount rate adopted. Therecognized asset retirement obligations are based on futureretirement cost estimates and incorporate many assumptions suchas: expected recoverable quantities of crude oil and natural gas,abandonment time, future inflation rates and the risk-free rateof interest adjusted for the Company’s credit costs.

**Business combinations**Accounting for business combinations requires the allocationof the purchase price to the various assets and liabilities ofthe acquired business at their respective fair values. Anypositive residual difference is recognized as"Goodwill". Negative residual differences are creditedto the profit and loss account. Management uses all availableinformation to make these fair value determinations and, formajor business acquisitions, typically engages an independentappraisal firm to assist in the fair value determination of theacquired assets and liabilities.

**Environmental liabilities**Together with other companies in the industries in which itoperates, Eni is subject to numerous EU, national, regional andlocal environmental laws and regulations concerning its oil andgas operations, production and other activities. They includelegislation that implements international conventions orprotocols. Environmental costs are recognized when it becomesprobable that a liability has been incurred and the amount can bereasonably estimated.

Management, considering the actions already taken, insurancepolicies to cover environmental risks and provision for risksaccrued, does not expect any material adverse effect onEni’s consolidated results of operations and financialposition as a result of such laws and regulations. However, therecan be no assurance that there will not be a material adverseimpact on Eni’s consolidated results of operations andfinancial position due to: (i) the possibility of an unknowncontamination; (ii) the results of the ongoing surveys and otherpossible effects of statements required by Decree No. 471/1999 ofthe Ministry of Environment concerning the remediation ofcontaminated sites; (iii) the possible effects of futureenvironmental legislations and rules; (iv) the effects ofpossible technological changes relating to future remediation;and (v) the possibility of litigation and the difficulty ofdetermining Eni’s liability, if any, as against otherpotentially responsible parties with respect to such litigationsand the possible insurance recoveries.

**Employee benefits**Defined benefit plans and other long-term benefits areevaluated with reference to uncertain events and based uponactuarial assumptions including among others discount rates,expected rates of return on plan assets, expected rates of salaryincreases, medical cost trends, estimated retirement dates andmortality rates. The significant assumptions used to account forpensions and other post-retirement benefits are determined asfollows: (i) discount and inflation rates reflect the rates atwhich benefits could be effectively settled, taking into accountthe duration of the obligation. Indicators used in selecting thediscount rate include rates of annuity contracts and rates ofreturn on high quality fixed-income investments. The inflationrates reflect market conditions observed country by country; (ii)the future salary levels of the individual employees aredetermined including an estimate of future changes attributed togeneral price levels (consistent with inflation rateassumptions), productivity, seniority and promotion; (iii)healthcare cost trend assumptions reflect an estimate of theactual future changes in the cost of the healthcare relatedbenefits provided to the plan participants and are based on pastand current healthcare cost trends including healthcareinflation, changes in healthcare utilization and changes inhealth status of the participants; (iv) demographic assumptionssuch as mortality, disability and turnover reflect the bestestimate of these future events for individual employeesinvolved, based principally on available actuarial data; and (v)determination of the expected rates of return on assets is madethrough compound averaging. For each plan, the distribution ofinvestments among bonds, equities and cash and their specificaverage expected rate of return is taken into account.Differences between expected and actual costs and between theexpected return and the actual return on plan assets routinelyoccur and are called actuarial gains and losses. Eni applies thecorridor method to amortize its actuarial losses and gains. Thismethod amortizes on a pro-rata basis the net cumulativeunrecognized actuarial gains and losses at the end of theprevious reporting period that exceed 10% of the greater of: (i)the present value of the defined benefit obligation; and (ii) thefair value of plan assets, over the average expected remainingworking lives of the employees participating in the plan.

Additionally, obligations for other long-term benefits aredetermined by adopting actuarial assumptions. The effect ofchanges in actuarial assumptions or a change in thecharacteristics of the benefit are taken to profit or loss intheir entirety.

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**Contingencies**In addition to accruing the estimated costs for environmentalliabilities, asset retirement obligation and employee benefits,Eni accrues for all contingencies that are both probable andestimable. These other contingencies are primarily related tolitigation and tax issues. Determining appropriate amounts foraccrual is a complex estimation process that includes subjectivejudgments.

**Revenue recognition in the Engineering & Constructionsegment**Revenue recognition in the Engineering & Constructionsegment is based on the stage of completion of a contract asmeasured on the cost-to-cost basis applied to contractualrevenues. Use of the stage of completion method requiresestimates of future gross profit on a contract by contract basis.The future gross profit represents the profit remaining afterdeducting costs attributable to the contract from revenuesprovided for in the contract. The estimate of future gross profitis based on a complex estimation process that includesidentification of risks related to the geographical region,market conditions in that region and any assessment that isnecessary to estimate with sufficient precision the total futurecosts as well as the expected timetable. Requests of additionalincome, deriving from a change in the scope of work, are includedin the total amount of revenues when it is probable that thecustomer will approve the variation and the related amount.Claims deriving from additional costs incurred for reasonsattributable to the client are included in the total amount ofrevenues when it is probable that the counterparty will acceptthem.

 

**Recent accounting principles**

**Accounting standards and interpretations issued by IASB/IFRIC**IFRS 8 "Operating Segments" replaced IAS 14"Segment Reporting". IFRS 8 sets out requirements fordisclosure of information about the group segments thatmanagement uses to make decisions about operating matters. Theidentification of operating segments is based on internal reportsthat are regularly reviewed by the chief operating decision makerin order to allocate resources to the segments and assess theirperformances. IFRS 8 comes into effect starting on January 1,2009.

The revised IAS 1 "Presentation of FinancialStatements" requires, among other things, a statement ofcomprehensive income that begins with the amount of net profitfor the year adjusted with all items of income and expensesdirectly recognized in equity, but excluded from net income, inaccordance with IFRS. The revised standard comes into effectstarting on January 1, 2009.

The revised IAS 23 "Borrowing Costs" requires theremoval of the option of immediately recognizing as an expenseborrowing costs that are directly attributable to theacquisition, construction or production of a qualifying assetthat take a substantial period of time to get ready for use orsale. The company is required to capitalize such borrowing costsas part of the cost of the asset. The revised standard comes intoeffect starting on January 1, 2009.

The revised IFRS 2 "Share-based payment" specifiesthe accounting treatment of all cancellations of a grant ofequity instruments to employees. It also imposes that vestingconditions are only service and performance conditions requiredin return for the equity instruments issued. The revised standardcomes into effect starting on January 1, 2009.

IFRIC 13 "Customer Loyalty Programmes" addresses howcompanies, which grant their customers loyalty, award creditswhen buying goods or services, should account for theirobligation to provide free or discounted goods or services if andwhen the customers redeem the credits. In particular IFRIC 13requires companies to allocate some of the consideration receivedfrom the sales transaction to the award credits and theirrecognition at fair value. This interpretation came into effectfor annual periods beginning on or after July 1, 2008 (for Eni:2009 financial statements).

Amendments to IAS 1 "Presentation of FinancialStatements" and to IAS 32 "Financial Instruments:Presentation" define the conditions that the puttableinstruments issued by companies have to meet in order to beclassified as equity. Moreover it allowed the classification asequity of instruments issued by the company that impose on thecompany an obligation to deliver to another party a pro ratashare of the net assets of the entity only on liquidation. Theamendments to IAS 1 and IAS 32 come into effect starting onJanuary 1, 2009.

"Improvements to IFRS", defined in the context ofthe annual process of "Improvements to IFRS" regardsonly changes to the existing standards with a technical andeditorial nature. The provisions come into effect starting onJanuary 1, 2009.

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On January 10, 2008, IASB issued a revised IFRS 3"Business Combinations" and an amended version of IAS27 "Consolidated and Separate Financial Statements".The revisions to IFRS 3 require, among other things, (i) theacquisition-related costs to be accounted for separately from thebusiness combination and then recognized as expenses rather thanincluded in goodwill, (ii) the recognition in the incomestatement of any change to contingent consideration, and (iii)the choice of the full goodwill method which means to treat thefull value of the goodwill of the business combination includingthe share attributable to minority interest. In the case of stepacquisitions, the revisions also relate to the recognition in theprofit and loss account of the difference between the fair valueat the acquisition date of the net assets previously held andtheir carrying amounts.

The amendments of IAS 27 require, among other things, thatacquisitions or disposals of non-controlling interests in asubsidiary that do not result in the loss of control, shall beaccounted for as equity transactions. By contrast, disposal ofany interests that the parent retains in a former subsidiary mayresult in a loss of control. In this case, at the date whencontrol is lost the remaining investment retained isincreased/decreased to fair value with gains or losses arisingfrom the difference between the fair value and carrying amount ofthe held investment recognized in the profit or loss account. Therevised Standards shall be applied for annual periods beginningon or after July 1, 2009 (for Eni: 2010 financial statements).

On July 3, 2008, IFRIC issued IFRIC 16 "Hedges of a NetInvestment in a Foreign Operation" which defines thecriteria for recognition and evaluation of hedges of a netinvestment in a foreign operation. In particular theinterpretation defines, among other things, that the object ofthe hedge is the exchange differences between the functionalcurrency of the foreign operation and the parent’sfunctional currency and that the hedge instrument can be held byany Group company with the exception of the hedged foreignoperation. This interpretation shall be applied for annualperiods beginning on or after October 1, 2008 (for Eni: 2009financial statements).

On November 27, 2008, IFRIC issued IFRIC 17"Distributions of Non-cash Assets to Owner" whichdefines the criteria of recognition and evaluation of thedistributions of assets other than cash when it pays dividends toits owner. It also applies in those situations in which an entitygives its owner a choice of receiving either non-cash assets or acash alternative. In particular, an entity shall measure aliability to distribute non-cash assets as dividends to itsowners at the fair value of the assets to be distributed. Theliability, with any adjustments, is recognized as a contra toequity. When the entity settles the dividend payable, thedifference, if any, between the carrying amount of the assetsdistributed and the fair value of the dividend payable is takento profit or loss. This interpretation shall be applied forannual periods beginning on or after July 1, 2009 (for Eni: 2010financial statements).

On January 29, 2008, IFRIC issued IFRIC 18 "Transfers ofAssets from customers" which defines the criteria ofrecognition and evaluation of transfers of items of property,plant and equipment by service providers that receive suchtransfers from their customers. The interpretation is alsoapplied in the cases in which the entity receives cash from acustomer that must be used only to connect the customer to anetwork. When the definition of an asset is met, the asset isrecognized at its fair value. When the connection is realized,the entity shall recognize the revenue for a period generallydetermined by the terms of the arrangement with the customer or,if the arrangement does not specify a term, over a periodcorresponding to the lower of the length of the supply and theuseful life of the asset used to provide the ongoing service.This interpretation shall be applied for annual periods beginningon or after July 1, 2009 (for Eni: 2010 financial statements).

Eni is currently reviewing these new IFRS and interpretationsto determine the likely impact on the Group’s results.

 

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**Notes to the ConsolidatedFinancial Statements****Current assets****1 Cash and cash equivalents**Cash and cash equivalents of euro 1,939 million (euro2,114 million at December 31, 2007) included financingreceivables originally due within 90 days for euro 616 million(euro 415 million at December 31, 2007). The latter were relatedto amounts on deposit with financial institutions accessible onlyon a 48-hour notice.

**2 Other financial assets held for tradingor available for sale**Other financial assets held for trading oravailable for sale are set out below:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| **Investments**                                                                      |   | **2,476** |   | **2,741** |
|--------------------------------------------------------------------------------------|--------|-----------|--------|-----------|
| **Securities        held for operating purposes**                                    |   |      |   |      |
| Listed Italian treasury bonds                                                        |   | 229       |   | 257       |
| Listed        securities issued by Italian and foreign financial        institutions |   | 27        |   | 45        |
| Non-quoted securities                                                                |   | 3         |   | 8         |
|                                                                                 |   | **259**   |   | **310**   |
| **Securities held for non-operating purposes**                                       |   |      |   |      |
| Listed        Italian treasury bonds                                                 |   | 168       |   | 109       |
| Listed securities issued by Italian and foreign        financial institutions        |   | 5         |   | 67        |
| Non-quoted        securities                                                         |   | 1         |   | 9         |
|                                                                                 |   | **174**   |   | **185**   |
| **Total        other securities**                                                    |   | **433**   |   | **495**   |
|                                                                                 |   | **2,909** |   | **3,236** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Equity instruments of euro 2,741 million (U.S. $3,815 millionat December 31, 2008 exchange rate) comprised the carrying amountof a 20% interest in OAO Gazprom Neft acquired on April 4, 2007following finalization of a bid within the Yukos liquidationprocedure. This entity is currently listed at the London StockExchange where approximately 5% of the share capital is traded,while Gazprom currently holds a 75% stake. This accountingclassification reflects the circumstance that Eni granted toGazprom a call option on the entire 20% interest to beexercisable by Gazprom within 24 months from the acquisitiondate, at a price of U.S. $3.7 billion equaling the bid price,adjusted by subtracting dividends distributed and adding possibleshare capital increases, a contractual remuneration of 9.4% onthe capital employed and related financing expenses.

The existing shareholder agreements establish that thegovernance of the investee will be modified to allow Eni toexercise significant influence through participation in thefinancial and operating policy decisions of the investee in thecase that Gazprom does not exercise its call option. The carryingamount of the interest equals the strike price of the call optionas of December 31, 2008. Eni decided not to adjust the carryingamount of the interest to the market prices at the balance sheetdate resulting in U.S. $1,961 million for the following reasons:(i) if Gazprom decides to exercise the call option, the strikeprice will be equal to the current carrying amount; (ii) ifGazprom decides not to exercise the call option, Eni will begranted significant influence in the decision-making process ofthe investee and consequently will be in a position to accountfor the investee in accordance with the equity method ofaccounting provided by IAS 28 for interests in associates. Underthe equity method, Eni is required to allocate the purchase priceto the corresponding interest in net equity and the residualamount to fair values of the investee’s assets andliabilities. Subsequently, the carrying amount is adjusted toreflect Eni’s share of losses and profits of the investee.Based on available information and the outcome of an impairmenttest performed also with the support of an independentconsultant, the equity method assessment would result in anamount not lower than the current carrying amount of theinterest.

Other securities of euro 495 million (euro 433 million atDecember 31, 2007) were available-for-sale securities. AtDecember 31, 2007 and December 31, 2008, Eni did not ownfinancial assets held for trading.

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The effects of the valuation at fair value of securities areset out below:

| (euro        million) |   | **Value at****Dec. 31, 2007** |   | **Changes recognized in        the reserves of shareholders' equity** |   | **Value at****Dec. 31, 2008** |
|-----------------------|--------|-------------------------------|--------|-----------------------------------------------------------------------|--------|-------------------------------|
|                  |   |                               |   |                                                                       |   |                               |

| Fair value                                             |   | 2      |   |   | 3     |   |   | **5** |   |
|--------------------------------------------------------|--------|--------|--------|--------|-------|--------|--------|-------|--------|
| Deferred tax liabilities                               |   |   |   |   | (1    | )      |   | (1    | )      |
| **Other reserves of        shareholders’ equity** |   | **2**  |   |   | **2** |   |   | **4** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Securities held for operating purposes of euro 310 million(euro 259 million at December 31, 2007) were designed to providecoverage of technical reserves of Group’s insurance companyEni Insurance Ltd for euro 302 million (euro 256 million atDecember 31, 2007).

The fair value of securities was determined by reference toquoted market prices.

**3 Trade and other receivables**Trade and other receivables were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Trade receivables                                                                 |   | 15,609     |   | 16,444     |
|-----------------------------------------------------------------------------------|--------|------------|--------|------------|
| Financing        receivables:                                                     |   |       |   |       |
| - for operating purposes - short-term                                             |   | 357        |   | 402        |
| - for        operating purposes - current portion of long-term        receivables |   | 27         |   | 85         |
| - for non-operating purposes                                                      |   | 990        |   | 337        |
|                                                                              |   | **1,374**  |   | **824**    |
| Other receivables:                                                                |   |       |   |       |
| - from        disposals                                                           |   | 125        |   | 149        |
| - other                                                                           |   | 3,568      |   | 4,805      |
|                                                                              |   | **3,693**  |   | **4,954**  |
|                                                                              |   | **20,676** |   | **22,222** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Receivables are stated net of the allowance forimpairment losses of euro 1,251 million (euro 935 million atDecember 31, 2007):

| (euro        million) |   | **Value at****Dec. 31, 2007** |   | **Additions** |   | **Deductions** |   | **Other changes** |   | **Value at****Dec. 31, 2008** |
|-----------------------|--------|-------------------------------|--------|---------------|--------|----------------|--------|-------------------|--------|-------------------------------|
|                  |   |                               |   |               |   |                |   |                   |   |                               |

| Trade receivables            |   | 595     |   |   | 251     |   |   | (36     | )      |   | (63     | )      |   | **747**   |   |
|------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-----------|--------|
| Financing        receivables |   |    |   |   | 14      |   |   |    |   |   | 5       |   |   | 19        |   |
| Other receivables            |   | 340     |   |   | 137     |   |   | (26     | )      |   | 34      |   |   | 485       |   |
|                         |   | **935** |   |   | **402** |   |   | **(62** | **)**  |   | **(24** | **)**  |   | **1,251** |   |

|   |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|

The increase in trade receivables of euro 835million was primarily related to the Gas & Power segment(euro 1,987 million), the Engineering & Construction segment(euro 513 million). These increases were partially offset by thedecrease related to the Refining & Marketing segment (euro1,036 million), Petrochemicals (euro 459 million) and Exploration& Production segment (euro 115 million).

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Trade and other receivables were as follows: 

| (euro        million) |   | **Dec. 31, 2008** |
|-----------------------|--------|-------------------|
|                  |   |                   |

|   |   | Trade receivables |   | Other receivables |   | Total |
|--------|--------|-------------------|--------|-------------------|--------|-------|
|   |   |                   |   |                   |   |       |

| Neither impaired nor past due                              |   | 12,611     |   | 3,395     |   | 16,006     |
|------------------------------------------------------------|--------|------------|--------|-----------|--------|------------|
| Impaired        (net of the valuation allowance)           |   | 1,242      |   | 88        |   | 1,330      |
| Not impaired and past due in the following        periods: |   |       |   |      |   |       |
| - within        90 days                                    |   | 1,812      |   | 502       |   | 2,314      |
| - 3 to 6 months                                            |   | 231        |   | 68        |   | 299        |
| - 6 to 12        months                                    |   | 248        |   | 294       |   | 542        |
| - over 12 months                                           |   | 300        |   | 607       |   | 907        |
|                                                       |   | **2,591**  |   | **1,471** |   | **4,062**  |
|                                                       |   | **16,444** |   | **4,954** |   | **21,398** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Trade receivables not impaired and past due primarily referredto high-credit-quality public administrations and otherhighly-reliable counterparties for oil, natural gas and chemicalproducts supplies.

Allowances for impairment losses of traded receivables of euro251 million (euro 98 million in 2007) primarily referred toRefining & Marketing segment (euro 72 million), Gas &Power segment (euro 65 million), Petrochemicals (euro 60 million)and Syndial SpA (euro 27 million). In comparison with 2007 theamount of the allowance is more than double as a consequence ofthe larger number of clients in financial difficulties after theworsening of general economic conditions over the last part ofthe year.

Allowances for impairment losses of other receivables of euro137 million (euro 109 million in 2007) primarily referred to theExploration & Production segment (euro 135 million) dueprimarily to impairment of certain receivables associated withcost recovery with respect to local state-owned co-venturersbased on underlying petroleum agreements and modifications of theCompany’s interest in certain joint ventures.

Trade receivables included guarantees for work in progress foreuro 213 million (euro 156 million at December 2007).

Other receivables for euro 227 million associated with costrecovery in the Exploration & Production segment arecurrently undergoing arbitration procedure. No impairment losshas been recognized as the Company and the third party are in theprocess of defining a transaction on amicable terms.

Receivables for financing operating activities of euro 487million (euro 384 million at December 31, 2007) included euro 399million due from not consolidated subsidiaries, joint venturesand associates (euro 246 million at December 31, 2007) and euro47 million cash deposit to provide coverage of Eni Insurance Ltdtechnical reserves (euro 112 million at December 31, 2007).Receivables for financing non-operating activities amounted toeuro 337 million (euro 990 million at December 31, 2007) of whicheuro 173 million related to the current portion of a restricteddeposit held by Eni Lasmo Plc as a guarantee of a debenture andeuro 88 million related to deposit of Eni Insurance Ltd. Thedecrease of euro 653 million related for euro 898 million to thedischarge of a collateral cash deposit made by Eni SpA toguarantee certain cash flow hedging derivatives.

Other receivables were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Accounts receivable from:                                      |   |      |   |      |
|----------------------------------------------------------------|--------|-----------|--------|-----------|
| - joint        venture operators in exploration and production |   | 1,699     |   | 2,242     |
| - Italian government entities                                  |   | 386       |   | 378       |
| -        insurance companies                                   |   | 253       |   | 146       |
|                                                           |   | **2,338** |   | **2,766** |
| Prepayments        for services                                |   | 194       |   | 857       |
| Receivables relating to factoring operations                   |   | 182       |   | 171       |
| Other        receivables                                       |   | 979       |   | 1,160     |
|                                                           |   | **3,693** |   | **4,954** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

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##### Table of Contents

Receivables deriving from factoring operations of euro 171million (euro 182 million at December 31, 2007) were related toSerfactoring SpA and consisted primarily of advances forfactoring operations with recourse and receivables for factoringoperations without recourse.

Receivables with related parties are described in Note 37 -Transactions with related parties.

Because of the short-term maturity of trade receivables, thefair value approximated their carrying amount.

**4 Inventories**Inventories were as follows:

|   |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |

| (euro million) |   | Crude oil, gas and petroleum products |   | Chemical products |   | Work in progress |   | Other |   | Total |   | Crude oil, gas and petroleum products |   | Chemical products |   | Work in progress |   | Other |   | Total |
|----------------|--------|---------------------------------------|--------|-------------------|--------|------------------|--------|-------|--------|-------|--------|---------------------------------------|--------|-------------------|--------|------------------|--------|-------|--------|-------|
|           |   |                                       |   |                   |   |                  |   |       |   |       |   |                                       |   |                   |   |                  |   |       |   |       |

| Raw and auxiliary materials and consumables                |   | 861       |   | 299       |   |    |   | 809     |   | 1,969     |   | 466       |   | 263     |   |    |   | 1,155     |   | 1,884     |
|------------------------------------------------------------|--------|-----------|--------|-----------|--------|---------|--------|---------|--------|-----------|--------|-----------|--------|---------|--------|---------|--------|-----------|--------|-----------|
| Products        being processed and semi finished products |   | 74        |   | 27        |   |    |   | 15      |   | 116       |   | 48        |   | 17      |   |    |   | 3         |   | 68        |
| Work in progress                                           |   |      |   |      |   | 553     |   |    |   | 553       |   |      |   |    |   | 953     |   |      |   | 953       |
| Finished        products and goods                         |   | 1,962     |   | 703       |   |    |   | 17      |   | 2,682     |   | 2,528     |   | 557     |   |    |   | 92        |   | 3,177     |
| Advances                                                   |   |      |   |      |   | 179     |   |    |   | 179       |   |      |   |    |   |    |   |      |   |      |
|                                                       |   | **2,897** |   | **1,029** |   | **732** |   | **841** |   | **5,499** |   | **3,042** |   | **837** |   | **953** |   | **1,250** |   | **6,082** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Inventories increased by euro 583 million primarily due to:(i) an increase in the trade value of the inventories in the Gas& Power segment reflecting favorable trends in the gas priceformulas (euro 661 million); and (ii) inclusion in consolidationof Distrigas NV (euro 322 million). Those increases werepartially offset by a decrease of euro 718 million in the tradevalue of crude oil and petroleum products inventories in theRefining & Marketing segment primarily due to the impact offalling oil and petroleum product prices resulting in therecognition of a provision to write inventories down to their netrealizable value at the year end. 

Contract work in progress for euro 953 million (euro 553million at December 31, 2007) are net of prepayments for euro 274million (euro 577 million at December 31, 2007) within the limitsof contractual considerations.

Inventories are stated net of the valuation allowance of euro697 million (euro 75 million at December 31, 2007):

| (euro        million) |   | **Value at****Dec. 31, 2007** |   | **Additions** |   | **Deductions** |   | **Other changes** |   | **Value at****Dec. 31, 2008** |
|-----------------------|--------|-------------------------------|--------|---------------|--------|----------------|--------|-------------------|--------|-------------------------------|
|                  |   |                               |   |               |   |                |   |                   |   |                               |

|   | **75** |   |   | 628 |   |   | (5 | ) |   | (1 | ) |   | **697** |   |
|--------|--------|--------|--------|-----|--------|--------|----|---|--------|----|---|--------|---------|--------|

|   |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|

The additions of euro 628 million (euro 9 million in 2007)primarily related to the Refining & Marketing segment (euro402 million) and to Petrochemicals (euro 215 million) as aconsequence of the alignment of the inventories to their netrealizable values at the closing date.

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##### Table of Contents

**5 Current tax assets**Current tax assets were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Italian subsidiaries        |   | 634     |   | 53      |
|-----------------------------|--------|---------|--------|---------|
| Foreign        subsidiaries |   | 69      |   | 117     |
|                        |   | **703** |   | **170** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The euro 533 million decrease in the current income tax assetsprimarily referred to Eni SpA which has used the tax receivablesto offset the tax payables for 2008 year (euro 554 million).

**6 Other current tax assets**Other current tax assets were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| VAT                              |   | 376     |   | 623       |
|----------------------------------|--------|---------|--------|-----------|
| Excise and        customs duties |   | 316     |   | 167       |
| Other taxes and duties           |   | 141     |   | 340       |
|                             |   | **833** |   | **1,130** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

**7 Other current assets**Other current assets were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Fair value of non-hedging derivatives            |   | 629       |   | 1,608     |
|--------------------------------------------------|--------|-----------|--------|-----------|
| Fair value        of cash flow hedge derivatives |   | 10        |   | 474       |
| Other assets                                     |   | 441       |   | 267       |
|                                             |   | **1,080** |   | **2,349** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

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##### Table of Contents

The fair value of derivative contracts which donot meet the criteria to be classified as hedges under IFRS wasas follows:

|   |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |

| (euro        million) |    | Fair value |    | Purchase commitments |    | Sale        commitments |    | Fair value |    | Purchase commitments |    | Sale        commitments |
|-----------------------|--------------|------------|--------------|----------------------|--------------|-------------------------|--------------|------------|--------------|----------------------|--------------|-------------------------|
|                  |         |            |         |                      |         |                         |         |            |         |                      |         |                         |

| **Non-hedging derivatives on exchange rate**        |   |    |   |      |   |      |   |      |   |      |   |      |
|-----------------------------------------------------|--------|---------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|
| Interest        currency swap                       |   | 170     |   | 821       |   | 291       |   | 141       |   | 403       |   | 200       |
| Currency swap                                       |   | 69      |   | 1,596     |   | 2,881     |   | 202       |   | 2,654     |   | 1,712     |
| Other                                               |   | 3       |   | 18        |   | 11        |   | 314       |   | 111       |   | 1,202     |
|                                                |   | **242** |   | **2,435** |   | **3,183** |   | **657**   |   | **3,168** |   | **3,114** |
| **Non-hedging        derivatives on interest rate** |   |    |   |      |   |      |   |      |   |      |   |      |
| Interest rate swap                                  |   | 91      |   | 248       |   | 3,466     |   | 29        |   | 217       |   | 703       |
| Other                                               |   |    |   |      |   |      |   |      |   | 4         |   |      |
|                                                |   | **91**  |   | **248**   |   | **3,466** |   | **29**    |   | **221**   |   | **703**   |
| **Non-hedging        derivatives on commodities**   |   |    |   |      |   |      |   |      |   |      |   |      |
| Over the counter                                    |   | 12      |   | 75        |   | 22        |   | 864       |   | 1,270     |   | 2,709     |
| Other                                               |   | 284     |   | 2         |   | 1,218     |   | 58        |   | 65        |   | 53        |
|                                                |   | **296** |   | **77**    |   | **1,240** |   | **922**   |   | **1,335** |   | **2,762** |
|                                                |   | **629** |   | **2,760** |   | **7,889** |   | **1,608** |   | **4,724** |   | **6,579** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Fair value of the derivative contracts is determined usingmarket quotations provided by the primary info-provider, or inthe absence of market information, appropriate valuation methodsused in the marketplace.

The increase in the fair value of the non-hedging derivativesof euro 979 million referred to the fair value of the derivativesderiving from the consolidation of Distrigas NV after theacquisition of control by the Gas & Power segment (euro 637million).

Fair value of the cash flow hedges of euro 474 millionreferred to Distrigas NV (euro 293 million) and to Exploration& Production segment (euro 181 million). The Distrigas NVderivatives were designated to hedge surpluses or deficits of gasto achieve a proper balance in the gas portfolio andsales/purchases of amounts of gas and oil products at fixedprice. Fair value related to the Exploration & Productionsegment referred to the fair value of the future sale agreementsof the proved oil reserves with a deadline by 2009. Thosederivatives were entered into to hedge exposure to variability infuture cash flows deriving from the sale in the 2008-2011 periodof approximately 2% of Eni’s proved reserves as of December31, 2006 corresponding to 125.7 mmBBL, decreasing to 79.7 mmBOEas of the end of December 2008 due to transactions settled in theyear. These hedging transactions were undertaken in connectionwith acquisitions of oil and gas assets in the Gulf of Mexico andCongo that were executed in 2007.

Fair value of contracts expiring by 2009 is givenin Note 20 - Other current liabilities; fair value of contractsexpiring beyond 2009 is given in Note 15 - Other non-currentreceivables and in Note 25 - Other non-current liabilities. Theeffects of the evaluation at fair value of cash flow hedgederivatives are given in the Note 27 - Shareholders’ equityand in the Note 32 - Finance income (expense).

The nominal value of cash flow hedge derivativesreferred to purchase and sale commitments for euro 1,069 millionand euro 3,130 million. Information on the hedged risks and thehedging policies is given in Note 29 - Guarantees, commitmentsand risks.

Other assets amounted to euro 267 million (euro441 million at December 31, 2007) and included prepayments andaccrued income for euro 63 million (euro 297 million at December31, 2007), rentals for euro 31 million (euro 21 million atDecember 31, 2007), and insurance premiums for euro 11 million(euro 10 million at December 31, 2007).

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##### Table of Contents

**Non-current assets****8 Property, plant and equipment**Analysis of tangible assets is set out below:

| (euro        million) |   | **Net value at the beginning of the year** |   | **Investments** |   | **Depreciation** |   | **Impairments** |   | **Change in the scope of consolidation** |   | **Currency translation differences** |   | **Other changes** |   | **Net value at the end of the year** |   | **Gross value at the end of the year** |   | **Provisions for amortization and        impairments** |
|-----------------------|--------|--------------------------------------------|--------|-----------------|--------|------------------|--------|-----------------|--------|------------------------------------------|--------|--------------------------------------|--------|-------------------|--------|--------------------------------------|--------|----------------------------------------|--------|--------------------------------------------------------|
|                  |   |                                            |   |                 |   |                  |   |                 |   |                                          |   |                                      |   |                   |   |                                      |   |                                        |   |                                                        |

| **Dec. 31, 2007**                        |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |   |      |   |   |       |   |   |        |   |   |       |   |
|------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|--------|-------------|--------|--------|------------|--------|
| Land                                     |   | 442        |   |   | 4          |   |   |       |   |   |       |   |   | 28        |   |   |       |   |   | 123       |   |   | 597        |   |   | 627         |   |   | 30         |   |
| Buildings                                |   | 1,406      |   |   | 74         |   |   | (98        | )      |   | (3         | )      |   | 115       |   |   | (3         | )      |   | (152      | )      |   | 1,339      |   |   | 3,123       |   |   | 1,784      |   |
| Plant and        machinery               |   | 32,494     |   |   | 1,774      |   |   | (4,642     | )      |   | (37        | )      |   | 31        |   |   | (1.530     | )      |   | 4.885     |   |   | 32,975     |   |   | 78,030      |   |   | 45,055     |   |
| Industrial and commercial equipment      |   | 230        |   |   | 163        |   |   | (112       | )      |   |       |   |   | 40        |   |   | (8         | )      |   | 38        |   |   | 351        |   |   | 1,434       |   |   | 1,083      |   |
| Other        assets                      |   | 328        |   |   | 86         |   |   | (83        | )      |   | (3         | )      |   | 1         |   |   | (11        | )      |   | 23        |   |   | 341        |   |   | 1,361       |   |   | 1,020      |   |
| Tangible assets in progress and advances |   | 6,229      |   |   | 6,263      |   |   |       |   |   | (97        | )      |   | 235       |   |   | (648       | )      |   | (666      | )      |   | 11,316     |   |   | 11,969      |   |   | 653        |   |
|                                     |   | **41,129** |   |   | **8,364**  |   |   | **(4,935** | **)**  |   | **(140**   | **)**  |   | **450**   |   |   | **(2,200** | **)**  |   | **4,251** |   |   | **46,919** |   |   | **96,544**  |   |   | **49,625** |   |
| **Dec. 31, 2008**                        |   |       |   |   |       |   |   |       |   |   |       |   |   |      |   |   |       |   |   |      |   |   |       |   |   |        |   |   |       |   |
| Land                                     |   | 597        |   |   | 8          |   |   |       |   |   |       |   |   | (7        | )      |   |       |   |   | 27        |   |   | 625        |   |   | 655         |   |   | 30         |   |
| Buildings                                |   | 1,339      |   |   | 101        |   |   | (105       | )      |   | (29        | )      |   | (122      | )      |   | 7          |   |   | (341      | )      |   | 850        |   |   | 3,055       |   |   | 2,205      |   |
| Plant and machinery                      |   | 32,975     |   |   | 3,486      |   |   | (5,648     | )      |   | (652       | )      |   | 1.299     |   |   | 123        |   |   | 4,535     |   |   | 36,118     |   |   | 86,714      |   |   | 50,596     |   |
| Industrial and commercial equipment      |   | 351        |   |   | 180        |   |   | (158       | )      |   | (3         | )      |   |      |   |   | 1          |   |   | 230       |   |   | 601        |   |   | 1,722       |   |   | 1,121      |   |
| Other assets                             |   | 341        |   |   | 124        |   |   | (83        | )      |   | (6         | )      |   | (13       | )      |   | 5          |   |   | 9         |   |   | 377        |   |   | 1,563       |   |   | 1,186      |   |
| Tangible assets in progress and advances |   | 11,316     |   |   | 8,183      |   |   |       |   |   | (653       | )      |   | 2.344     |   |   | 414        |   |   | (4,342    | )      |   | 17,262     |   |   | 18,481      |   |   | 1,219      |   |
|                                     |   | **46,919** |   |   | **12,082** |   |   | **(5,994** | **)**  |   | **(1,343** | **)**  |   | **3.501** |   |   | **550**    |   |   | **118**   |   |   | **55,833** |   |   | **112,190** |   |   | **56,357** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Capital expenditures of euro 12,082 million (euro 8,364million at December 31, 2007) primarily related to theExploration & Production segment (euro 7,611 million), theEngineering & Construction segment (euro 2,015 million), theGas & Power segment (euro 1,318 million) and the Refining& Marketing segment (euro 941 million). Capital expendituresincluded capitalized finance expenses of euro 236 million (euro180 million at December 31, 2007) essentially related to theExploration & Production segment (euro 109 million), theRefining & Marketing segment (euro 44 million) and the Gas& Power segment (euro 42 million). The interest rate used forthe capitalization of finance expense ranged from 3.5% to 5.1%(4.4% and 5.2% at December 31, 2007).

The depreciation rates used were as follows:

| (%)                                 |   |   |   |   |   |   |   |   |   |
|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Buildings                           |   |   |   |   | 2      |   | -      | 10     |   |
| Plant and machinery                 |   |   |   |   | 2      |   | -      | 10     |   |
| Industrial and commercial equipment |   |   |   |   | 4      |   | -      | 33     |   |
| Other assets                        |   |   |   |   | 6      |   | -      | 33     |   |

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##### Table of Contents

The break-down by segment of impairments amounting to euro1,343 million (euro 140 at December 31, 2007) and the associatedtax effect is provided below:

| (euro        million) |   | **2007** |   | **2008** |
|-----------------------|--------|----------|--------|----------|
|                  |   |          |   |          |

| **Impairment**                                          |   |    |   |      |
|---------------------------------------------------------|--------|---------|--------|-----------|
| Exploration & Production                            |   | 86      |   | 765       |
| Refining        & Marketing                         |   | 52      |   | 292       |
| Petrochemicals                                          |   |    |   | 279       |
| Other        segments                                   |   | 2       |   | 7         |
|                                                    |   | **140** |   | **1,343** |
| **Fiscal        effect**                                |   |    |   |      |
| Exploration & Production                            |   | 30      |   | 213       |
| Refining        & Marketing                         |   | 19      |   | 108       |
| Petrochemicals                                          |   |    |   | 88        |
| Other        segments                                   |   |    |   | 2         |
|                                                    |   | **49**  |   | **411**   |
| **Impairment        net of the relevant fiscal effect** |   |    |   |      |
| Exploration & Production                            |   | 56      |   | 552       |
| Refining        & Marketing                         |   | 33      |   | 184       |
| Petrochemicals                                          |   |    |   | 191       |
| Other        segments                                   |   | 2       |   | 5         |
|                                                    |   | **91**  |   | **932**   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

In assessing whether impairment is required, the carryingvalue of the asset is compared with its recoverable amount. Therecoverable amount is the higher of the asset’s fair valueless costs to sell and value in use. Given the nature ofEni’s activities, information on the fair value of an assetis usually difficult to obtain unless negotiations with potentialpurchasers are taking place. Consequently the recoverable amountused in assessing the impairment charges described below is valuein use. Value in use is calculated by discounting the estimatedcash flows determined on the basis of the best informationavailable at the moment of the assessment deriving from: (i) theCompany’s four-year plan approved by the top managementwhich provides information on expected oil and gas production,sales volumes, capital expenditures, operating costs and marginsand industrial and marketing set-up, as well as trends in themain monetary variables, including inflation, nominal interestrates and exchange rates. For the subsequent years beyond theplan horizon, a real growth rate ranging from 0% to 2% has beenused; (ii) the commodity prices have been assessed based on theforward prices prevailing in the market place as of the balancesheet date for the first four years of the cash flow projectionsand the long-term price assumptions adopted by the Company’smanagement for strategic planning purposes for the followingyears (see "Basis of presentation").

Post-tax cash flows are discounted at the rate whichcorresponds for the Exploration & Production, Refining& Marketing and Petrochemicals segments to theCompany’s weighted average cost of capital, adjusted toconsider the risks specific to each country of activity. Thepost-tax WACC used for impairment purposes has ranged from 8.5%to 12.5%. Post-tax cash flows and discount rates have beenadopted as they result in an assessment that is substantiallyequal to a pre-tax assessment.

In the Exploration & Production segment the mainimpairments were associated to proved and unproved properties inTurkmenistan, Iran and Gulf of Mexico as a consequence of changesin the regulatory and contractual framework, cost increases, aswell as a changed pricing environment.

In the Refining & Marketing segment the main impairmentsreferred to: (i) refining plants due to a worsening pricingenvironment and specific plant factors (low complexity and highfixed operating costs); and (ii) the motorway retail network ofservice stations due to a worsening pricing environment, lowerforecast volumes, increased motorway royalties and thecommitments with the grantor to execute certain capitalexpenditures that bear no return.

In Petrochemicals the main impairments referred to: (i)aromatic plants of the Sicilian industrial base and of PortoMarghera due to lower expected profitability associated with aworsening margin environment; (ii) styrene plants of Mantova dueto the structural drop of the demand by the users of polystyrene;and (iii) polyethylene plants of the Sicilian industrial base dueto the low competitiveness of the product, to the drop of thedemand and the competitive pressure.

Changes in the consolidation area of euro 3,501 million (euro450 million at December 31, 2007) referred to the acquisition ofcontrol by the Exploration & Production segment of BurrenEnergy Plc (euro 2,543 million), First 

F-32

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##### Table of Contents

Petroleums Ltd (euro 757 million), Hindustan Oil ExplorationCo (euro 199 million) and Eni Hewett Ltd (euro 118 million), theacquisition of control by the Gas & Power segment ofDistrigas NV (euro 30 million) and the sale by Refining &Marketing of Agip España SA (euro 146 million). More informationon acquisitions is included in the Note 28 - Other information.

Foreign currency translation differences of euro 550 millionwere primarily related to translation of entities accountsdenominated in U.S. dollar (euro 1,374 million). This effect waspartially offset by translation of entities accounts denominatedin Norwegian krones (euro 433 million) and British pounds (euro308 million).

Other changes in the net book value of tangible assets (euro118 million) referred to the initial recognition and change inthe estimated amount of the costs for the dismantling andrestoration of sites referring to the Exploration &Production segment (euro 620 million). This effect was partiallyoffset by asset disposals for euro 318 million, of which euro 248million related to oil and gas assets of the Exploration &Production segment.

The accumulated impairments amounted to euro 3,328 million andeuro 4,692 million at December 31, 2007 and 2008, respectively.

At December 31, 2008, Eni pledged property, plant andequipment for euro 27 million primarily as collateral againstcertain borrowings (euro 52 million at December 31, 2007).

Government grants recorded as a decrease of property, plantand equipment amounted to euro 651 million (euro 682 million atDecember 31, 2007).

Assets acquired under financial lease agreements amounted toeuro 163 million, of which euro 127 million related to a drillingplatform by the Engineering & Construction segment, euro 25million related to FPSO ships used by the Exploration &Production segment to support oil production and treatmentactivities and euro 11 million related to service stations in theRefining & Marketing segment.

Contractual commitments related to the purchase of property,plant and equipment are included in Note 29 - Guarantees,commitments and risks - Liquidity risk.

Property, plant and equipment under concession arrangementsare described in Note 29 - Guarantees, commitments and risks -Assets under concession arrangements.

F-33

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##### Table of Contents

**Property, plant and equipment by segment**

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| **Property, plant and equipment, gross**                                |   |       |   |   |        |   |
|-------------------------------------------------------------------------|--------|------------|--------|--------|-------------|--------|
| Exploration        & Production                                     |   | 54,284     |   |   | 66,023      |   |
| Gas & Power                                                         |   | 17,438     |   |   | 18,944      |   |
| Refining        & Marketing                                         |   | 12,421     |   |   | 12,899      |   |
| Petrochemicals                                                          |   | 4,918      |   |   | 5,036       |   |
| Engineering        & Construction                                   |   | 5,823      |   |   | 7,702       |   |
| Other activities                                                        |   | 1,543      |   |   | 1,550       |   |
| Corporate        and financial companies                                |   | 344        |   |   | 391         |   |
| Elimination of intra-group profits                                      |   | (227       | )      |   | (355        | )      |
|                                                                    |   | **96,544** |   |   | **112,190** |   |
| **Accumulated depreciation, amortization and        impairment losses** |   |       |   |   |        |   |
| Exploration        & Production                                     |   | 27,806     |   |   | 32,811      |   |
| Gas & Power                                                         |   | 6,179      |   |   | 6,863       |   |
| Refining        & Marketing                                         |   | 7,926      |   |   | 8,403       |   |
| Petrochemicals                                                          |   | 3,819      |   |   | 4,124       |   |
| Engineering        & Construction                                   |   | 2,310      |   |   | 2,548       |   |
| Other activities                                                        |   | 1,461      |   |   | 1,467       |   |
| Corporate        and financial companies                                |   | 148        |   |   | 179         |   |
| Elimination of intra-group profits                                      |   | (24        | )      |   | (38         | )      |
|                                                                    |   | **49,625** |   |   | **56,357**  |   |
| **Property, plant and equipment, net**                                  |   |       |   |   |        |   |
| Exploration        & Production                                     |   | 26,478     |   |   | 33,212      |   |
| Gas & Power                                                         |   | 11,259     |   |   | 12,081      |   |
| Refining        & Marketing                                         |   | 4,495      |   |   | 4,496       |   |
| Petrochemicals                                                          |   | 1,099      |   |   | 912         |   |
| Engineering        & Construction                                   |   | 3,513      |   |   | 5,154       |   |
| Other activities                                                        |   | 82         |   |   | 83          |   |
| Corporate        and financial companies                                |   | 196        |   |   | 212         |   |
| Elimination of intra-group profits                                      |   | (203       | )      |   | (317        | )      |
|                                                                    |   | **46,919** |   |   | **55,833**  |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

 

**9 Other assets**The carrying amount of the expropriated Dación assets(euro 563 million at December 31, 2007) have been reclassified inthe item "Other non-current receivables" following thesettlement agreement with the Republic of Venezuela. Under theterms of this agreement, Eni will receive cash compensation, apart of which has been already collected in the year, to be paidin seven yearly installments, yielding interest income from thedate of the settlement. The net present value of this cashcompensation is in line with the book value of assets, net of therelated provisions.

**10 Inventory - compulsory stock**Inventory - compulsory stock was as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Crude oil and petroleum products |   | 2,015     |   | 1,040     |
|----------------------------------|--------|-----------|--------|-----------|
| Natural        gas               |   | 156       |   | 156       |
|                             |   | **2,171** |   | **1,196** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

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Compulsory stock was primarily held by Italian companies (euro2,008 million and euro 1,184 million at December 31, 2007 and2008, respectively) in accordance with minimum stock requirementsset forth by applicable laws. The decrease of euro 975 million incrude oil and petroleum products is primarily due to theimpairment for alignment of the inventories to the net realizablevalues recognized at year end (euro 724 million).

**11 Intangible assets**Intangible assets were as follows: 

| (euro        million) |   | **Net value at the beginning of the year** |   | **Investments** |   | **Amortization** |   | **Changes in the scope of consolidation** |   | **Other changes** |   | **Net value at the end of the year** |   | **Gross value at the end of the year** |   | **Provisions for amortization        and writedowns** |
|-----------------------|--------|--------------------------------------------|--------|-----------------|--------|------------------|--------|-------------------------------------------|--------|-------------------|--------|--------------------------------------|--------|----------------------------------------|--------|-------------------------------------------------------|
|                  |   |                                            |   |                 |   |                  |   |                                           |   |                   |   |                                      |   |                                        |   |                                                       |

| **Dec. 31, 2007**                                          |   |      |   |   |      |   |   |       |   |   |      |   |   |    |   |   |       |   |   |       |   |   |      |   |
|------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|-----------|--------|--------|---------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|
| **Intangible        assets with finite useful lives**      |   |      |   |   |      |   |   |       |   |   |      |   |   |    |   |   |       |   |   |       |   |   |      |   |
| Exploration expenditures                                   |   | 409       |   |   | 1,682     |   |   | (1,812     | )      |   |      |   |   | 470     |   |   | 749        |   |   | 1,509      |   |   | 760       |   |
| Industrial        patents and intellectualproperty rights  |   | 112       |   |   | 40        |   |   | (81        | )      |   |      |   |   | 77      |   |   | 148        |   |   | 1,179      |   |   | 1,031     |   |
| Concessions, licenses, trademarksand similar        items  |   | 856       |   |   | 12        |   |   | (83        | )      |   | 1         |   |   |    |   |   | 786        |   |   | 2,449      |   |   | 1,663     |   |
| Service        concession arrangements                     |   | 3,183     |   |   | 168       |   |   | (96        | )      |   |      |   |   | (37     | )      |   | 3,218      |   |   | 5,699      |   |   | 2,481     |   |
| Intangible assets in progressand advances                  |   | 151       |   |   | 312       |   |   |       |   |   |      |   |   | (86     | )      |   | 377        |   |   | 381        |   |   | 4         |   |
| Other        intangible assets                             |   | 141       |   |   | 15        |   |   | (24        | )      |   | 36        |   |   | (10     | )      |   | 158        |   |   | 572        |   |   | 414       |   |
|                                                       |   | **4,852** |   |   | **2,229** |   |   | **(2,096** | **)**  |   | **37**    |   |   | **414** |   |   | **5,436**  |   |   | **11,789** |   |   | **6,353** |   |
| **Intangible        assets with indefinite useful lives**  |   |      |   |   |      |   |   |       |   |   |      |   |   |    |   |   |       |   |   |       |   |   |      |   |
| Goodwill                                                   |   | 2,084     |   |   |      |   |   |       |   |   |      |   |   | 31      |   |   | 2,115      |   |   |       |   |   |      |   |
|                                                       |   | **6,936** |   |   | **2,229** |   |   | **(2,096** | **)**  |   | **37**    |   |   | **445** |   |   | **7,551**  |   |   |       |   |   |      |   |
| **Dec. 31, 2008**                                          |   |      |   |   |      |   |   |       |   |   |      |   |   |    |   |   |       |   |   |       |   |   |      |   |
| **Intangible assets with finite useful lives**             |   |      |   |   |      |   |   |       |   |   |      |   |   |    |   |   |       |   |   |       |   |   |      |   |
| Exploration expenditures                                   |   | 749       |   |   | 1,907     |   |   | (2,097     | )      |   | 326       |   |   | 77      |   |   | 962        |   |   | 2,286      |   |   | 1,324     |   |
| Industrial patents and intellectual property        rights |   | 148       |   |   | 44        |   |   | (85        | )      |   |      |   |   | 42      |   |   | 149        |   |   | 1,203      |   |   | 1,054     |   |
| Concessions, licenses, trademarks and similar        items |   | 786       |   |   | 17        |   |   | (93        | )      |   | (15       | )      |   | 38      |   |   | 733        |   |   | 2,475      |   |   | 1,742     |   |
| Service concession arrangements                            |   | 3,218     |   |   | 230       |   |   | (109       | )      |   |      |   |   | (17     | )      |   | 3,322      |   |   | 5,837      |   |   | 2,515     |   |
| Intangible assets in progressand advances                  |   | 377       |   |   | 264       |   |   |       |   |   |      |   |   | (61     | )      |   | 580        |   |   | 590        |   |   | 10        |   |
| Other intangible assets                                    |   | 158       |   |   | 18        |   |   | (52        | )      |   | 1,600     |   |   | 14      |   |   | 1,738      |   |   | 2,000      |   |   | 262       |   |
|                                                       |   | **5,436** |   |   | **2,480** |   |   | **(2,436** | **)**  |   | **1,911** |   |   | **93**  |   |   | **7,484**  |   |   | **14,391** |   |   | **6,907** |   |
| **Intangible assetswith indefinite useful lives**          |   |      |   |   |      |   |   |       |   |   |      |   |   |    |   |   |       |   |   |       |   |   |      |   |
| Goodwill                                                   |   | 2,115     |   |   |      |   |   |       |   |   | 1,439     |   |   | (1      | )      |   | 3,553      |   |   |       |   |   |      |   |
|                                                       |   | **7,551** |   |   | **2,480** |   |   | **(2,436** | )      |   | **3,350** |   |   | **92**  |   |   | **11,037** |   |   |       |   |   |      |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Exploration expenditures of euro 962 million related toacquisition costs of unproved reserves other than probable andpossible resources included in business combinations and thepurchase of mineral rights. Main additions in the year includedexploration drilling expenditures which were fully amortized asincurred for euro 1,715 million included within"investments" (euro 1,610 million at December 31,2007).

Concessions, licenses, trademarks and similar items for euro733 million primarily comprised transmission rights for naturalgas imported from Algeria (euro 482 million) and concessions formineral exploration (euro 189 million).

Service concession arrangements primarily refer to the Italiangas distribution activity (euro 3,111 million and euro 3,205million at December 31, 2007 and 2008, respectively). Suchactivity is conducted on the basis of concessions granted bylocal public entities. At the expiry date of the concession,compensation is paid, defined by using criteria of businessappraisal, to the outgoing operator following the sale of its owngas distribution network. Service tariffs for distribution aredefined on the basis of a method established by the Authority forElectricity and Gas. Legislative Decree No. 164/2000 provides thegrant of distribution service exclusively by tender, with a 

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maximum length of 12 years. Government grants recorded as adecrease in service concession arrangements amounted to euro 657million (euro 513 million at December 31, 2007).

Other intangible assets with finite useful lives of euro 1,738million primarily referred to: (i) customer relationship andorder backlog for euro 1,355 million recognized after theacquisition of control of Distrigas NV. These assets areamortized on the basis of the supply contract with the longestterm (19 years) and the residual useful life of the sale contract(4 years); (ii) the development project of the gas storagecapacity recognized after the acquisition of control of EniHewett Ltd (euro 208 million); (iii) royalties for the use oflicenses by Polimeri Europa SpA (euro 72 million); and (iv)estimated costs for Eni’s social responsibility projects inrelation to oil development programs in Val d’Agri (euro 18million) following commitments made with the Basilicata Region.

The depreciation rates used were as follows:

| (%)                                                        |   |   |   |   |   |   |   |   |   |
|------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Exploration expenditures                                   |   |   |   |   | 10     |   | -      | 33     |   |
| Industrial patents and        intellectual property rights |   |   |   |   | 20     |   | -      | 33     |   |
| Concessions, licenses, trademarks and similar        items |   |   |   |   | 7      |   | -      | 33     |   |
| Service concession        arrangements                     |   |   |   |   | 2      |   | -      | 20     |   |
| Other intangible assets                                    |   |   |   |   | 4      |   | -      | 25     |   |

Changes in the consolidation area related to the intangibleassets with a finite useful life of euro 1,911 million primarilyrelated to the acquisition of control by the Gas & Powersegment on Distrigas NV for euro 1,395 million (customerrelationship for euro 1,216 million, order backlog for euro 165million and software for euro 14 million), unproved reservesother than probable and possible resources recognized after theacquisition of control by the Exploration & Productionsegment on Burren Energy Plc for euro 326 million and thedevelopment project of the gas storage capacity recognized afterthe acquisition of control of Eni Hewett Ltd (euro 208 million).

Change in the consolidation area related to the intangibleassets with an indefinite useful life (goodwill) of euro 1,439million primarily refers to the acquisition of control by the Gas& Power segment on Distrigas NV (euro 1,245 million), theacquisition of control by the Exploration & Productionsegment on Burren Energy Plc (euro 89 million), on First CalgaryPetroleums Ltd (euro 88 million) and on Eni Hewett (euro 39million).

The carrying amount of goodwill at the end of the year waseuro 3,553 million (euro 2,115 million at December 31, 2007). Thebreak-down by operating segment is as follows: 

| (euro        million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|-----------------------|--------|-------------------|--------|-------------------|
|                  |   |                   |   |                   |

| Exploration & Production          |   | 158       |   | 266       |
|---------------------------------------|--------|-----------|--------|-----------|
| Gas &        Power                |   | 1,125     |   | 2,399     |
| Refining & Marketing              |   | 86        |   | 142       |
| Engineering        & Construction |   | 746       |   | 746       |
|                                  |   | **2,115** |   | **3,553** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Goodwill acquired through business combinations has beenallocated to the cash generating units ("CGUs") thatare expected to benefit from the synergies of the acquisition.The recoverable amount of the CGUs is the higher of: (i) fairvalue less costs to sell if there is an active market or recenttransactions for similar assets within the same industry betweenknowledgeable and willing parties; and (ii) value-in-usedetermined by discounting the estimated future cash flowsdetermined on the basis of the best pieces of informationavailable at the moment of the assessment deriving from: (a) theCompany’s four-year plan approved by the top managementwhich provides information on expected oil and gas production,sales volumes, capital expenditures, operating costs and marginsand industrial and marketing set-up, as well as trends in themain monetary variables, including inflation, nominal interestrates and exchange rates. For the subsequent years beyond theplan horizon, a real growth rate ranging from 0% to 2% has beenused; (b) the commodity prices have been assessed based on theforward prices prevailing in the market place as of the balancesheet date for the first four years of the cash flow projectionsand the long-term price assumptions adopted by the Company’stop management for strategic planning purposes for the followingyears (see Basis of presentation).

Value-in-use is determined by discounting post-tax cash flowsat the rate which corresponds: (i) for the Exploration &Production and Refining & Marketing and Petrochemicalssegments at the Company’s weighted average cost of capital(post-tax WACC), adjusted to consider risks specific to eachcountry of activity. WACC used for the impairment purposes hasranged from 8.5% to 12.5%; (ii) for the Gas & Power andEngineering 

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& Construction segments at their specific WACC. Forthe Gas & Power segment it has been estimated on the basis ofa sample of companies operating in the same segment, for theEngineering & Construction segment on the basis of marketdata. WACC used for impairments in the Gas & Power segmenthas been adjusted to take into consideration risks specific toeach country of activity, while WACC used for impairments in theEngineering & Construction segment has not been adjustedas most of the company assets are not permanently located in aspecific country. WACC used for impairment has ranged from 7.5%to 9% for the Gas & Power segment and it was 8% for theEngineering & Construction segment; and (iii) for theregulated activities in the Italian natural gas sector, thediscount rates have been assumed equal to the rates of returndefined by the Italian Authority for Electricity and Gas.

Post-tax cash flows and discount rates have been adopted asthey result in an assessment that is substantially equal to apre-tax assessment.

Goodwill has been allocated to the following CGUs:

**Gas & Power**

| (euro        million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|-----------------------|--------|-------------------|--------|-------------------|
|                  |   |                   |   |                   |

| Domestic gas market                                |   | 743       |   | 743       |
|----------------------------------------------------|--------|-----------|--------|-----------|
| Foreign        gas market                          |   | 67        |   | 1,341     |
| *- of which Distrigas NV*                          |   |      |   | *1,245*   |
| Domestic        natural gas transportation network |   | 305       |   | 305       |
| Other                                              |   | 10        |   | 10        |
|                                               |   | **1,125** |   | **2,399** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Goodwill allocated to the CGU domestic gas market referredprimarily to goodwill recognized following the purchase ofminorities in Italgas SpA in 2003 through a public offering (euro706 million). The key assumptions adopted for assessing therecoverable amount of the CGU which exceeds its carrying amountreferred to commercial margins, forecast volumes, the discountrate and the growth rates adopted to determine the terminalvalue. Information on these drivers has been collected from thefour-year-plan approved by the Company’s top managementwhile the terminal value has been estimated through theperpetuity method of the last-year-plan. The excess of therecoverable amount of the domestic gas market CGU over itscarrying amount including the allocated portion of goodwill(headroom) would be reduced to zero under each of the followinghypothesis: (i) a decrease of 20% in the projected commercialmargins in each of the four years of the plan; (ii) a decrease of20% in the expected volumes in each of the four years of theplan; (iii) an increase of 1.7 percentage points in the discountrate; and (iv) a negative real growth rate of 2%.

Goodwill allocated to the Distrigas CGU has been recognizedfollowing the acquisition of a controlling interest of 57.24% inthe Belgian company in October 2008. The allocation is on apreliminary basis. When the price allocation is finalized,goodwill is expected to be allocated to the different CGUs thatare expected to benefit from the synergies of the acquisition. Atthat time, it will be possible to determine any excess of therecoverable amount of the CGUs over their carrying amounts,including any allocated portion of goodwill, and define thehypothesis under which the headroom would be reduced to zero.

Goodwill allocated to the domestic natural gas transportationnetwork CGU referred to the purchase of own shares by Snam ReteGas SpA and it is equal to the difference between the purchasecost over the carrying amount of the corresponding share ofequity. The recoverable amount of the CGU is assessed based onits Regulatory Asset Base (RAB) as recognized by the ItalianAuthority for Electricity and Gas and it is higher than itscarrying amount, including the allocated goodwill. Managementbelieves that no reasonably possible change in the assumptionsadopted would cause the headroom of the CGU to be reduced tozero.

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**Engineering & Construction**The segment goodwill of euro 746 million was mainlyrecognized following the acquisition of Bouygues Offshore SA, nowSaipem SA (euro 711 million) and was allocated to the followingCGUs:

| (euro        million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|-----------------------|--------|-------------------|--------|-------------------|
|                  |   |                   |   |                   |

| Offshore constructions       |   | 416     |   | 416     |
|------------------------------|--------|---------|--------|---------|
| Onshore        constructions |   | 315     |   | 314     |
| Other                        |   | 15      |   | 16      |
|                         |   | **746** |   | **746** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The key assumptions adopted for assessing the recoverableamount of the CGUs which exceeds the carrying amount referred tooperating results, the discount rate and the growth rates adoptedto determine the terminal value. Information on these drivers hasbeen collected from the four-year-plan approved by theCompany’s top management while the terminal value has beenestimated by using a perpetual growth rate of 2% applied to anaverage normalized terminal cash flow.

The following changes in each of the assumptions, all elsebeing equal would cause the headroom of the Offshore constructionCGU to be reduced to zero: (i) decrease of 52% of the operatingresult of the four years of the plan; (ii) increase of 6percentage points of the discount rate; and (iii) negative realgrowth rate.

Changes in each of the assumptions, all else being equal thatwould cause the headroom of the Onshore construction CGU to bereduced to zero are greater than those of the Offshoreconstruction CGU described above. As well, also the headroom forthe Offshore and Onshore CGUs calculated by removing thenormalization of the terminal cash flows results widely positive.

Other changes in goodwill of euro 1 million referred toimpairments of euro 44 million of which euro 38 million primarilyreferred to Exploration & Production which has impaired theinterest in goodwill recognized following the acquisition ofBurren Energy Plc (euro 28 million) and of Lasmo Plc (euro 9million). More information on acquisitions is included in theNote 28 - Other information.

**12 Investments****Equity-accounted investments******Equity-accounted investments were as follows:

| (euro        million) |   | **Value at the beginning of the year** |   | **Acquisition and subscriptions** |   | **Share of profit of equity-accounted        investments** |   | **Share of loss of equity-accounted        investments** |   | **Deduction for dividends** |   | **Currency translation differences** |   | **Other changes** |   | **Value at the end of the year** |
|-----------------------|--------|----------------------------------------|--------|-----------------------------------|--------|------------------------------------------------------------|--------|----------------------------------------------------------|--------|-----------------------------|--------|--------------------------------------|--------|-------------------|--------|----------------------------------|
|                  |   |                                        |   |                                   |   |                                                            |   |                                                          |   |                             |   |                                      |   |                   |   |                                  |

| **Dec. 31, 2007**                                               |   |      |   |   |      |   |   |    |   |   |     |   |   |     |   |   |     |   |   |     |   |   |      |   |
|-----------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|---------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|-----------|--------|
| Investments        in unconsolidated entities controlled by Eni |   | 144       |   |   | 4         |   |   | 10      |   |   | (2       | )      |   | (9       | )      |   | (6       | )      |   |     |   |   | 141       |   |
| Joint ventures                                                  |   | 2,506     |   |   | 1,109     |   |   | 481     |   |   | (130     | )      |   | (351     | )      |   | (173     | )      |   | (132     | )      |   | 3,310     |   |
| Associates                                                      |   | 1,236     |   |   | 813       |   |   | 415     |   |   | (3       | )      |   | (220     | )      |   | (42      | )      |   | (11      | )      |   | 2,188     |   |
|                                                            |   | **3,886** |   |   | **1,926** |   |   | **906** |   |   | **(135** | **)**  |   | **(580** | **)**  |   | **(221** | **)**  |   | **(143** | **)**  |   | **5,639** |   |
| **Dec. 31, 2008**                                               |   |      |   |   |      |   |   |    |   |   |     |   |   |     |   |   |     |   |   |     |   |   |      |   |
| Investments in unconsolidated entities        controlled by Eni |   | 141       |   |   | 41        |   |   | 27      |   |   | (6       | )      |   | (5       | )      |   | 3        |   |   | (24      | )      |   | 177       |   |
| Joint ventures                                                  |   | 3,310     |   |   | 47        |   |   | 536     |   |   | (94      | )      |   | (444     | )      |   | (123     | )      |   | 25       |   |   | 3,257     |   |
| Associates                                                      |   | 2,188     |   |   | 289       |   |   | 198     |   |   | (5       | )      |   | (266     | )      |   | 35       |   |   | (402     | )      |   | 2,037     |   |
|                                                            |   | **5,639** |   |   | **377**   |   |   | **761** |   |   | **(105** | **)**  |   | **(715** | **)**  |   | **(85**  | **)**  |   | **(401** | **)**  |   | **5,471** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Acquisitions and subscriptions for euro 377 million related tothe subscription of capital increase for euro 345 million, ofwhich euro 254 million related to Angola LNG Ltd.

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Share of profit of equity-accounted investments and thedecrease following the distribution of the dividends referred tothe following companies:

| (euro        million) |    | **Dec. 31, 2007** |    | **Dec. 31, 2008** |
|-----------------------|--------------|-------------------|--------------|-------------------|
|             |    |                   |    |                   |

|    |    | Share of profit of        equity-accounted investments |    | Deduction for dividends |    | Eni’s interest % |    | Share of profit of        equity-accounted investments |    | Deduction for dividends |    | Eni’s interest % |
|--------------|--------------|--------------------------------------------------------|--------------|-------------------------|--------------|-----------------------|--------------|--------------------------------------------------------|--------------|-------------------------|--------------|-----------------------|
|         |         |                                                        |         |                         |         |                       |         |                                                        |         |                         |         |                       |

| Unión Fenosa Gas SA             |   | 181     |   | 173     |   | 50.00  |   | 200     |   | 185     |   | 50.00  |
|--------------------------------------|--------|---------|--------|---------|--------|--------|--------|---------|--------|---------|--------|--------|
| United Gas        Derivatives Co     |   | 79      |   | 40      |   | 33.33  |   | 107     |   | 127     |   | 33.33  |
| EnBW Eni Verwaltungsgesellschaft mbH |   | 64      |   | 42      |   | 50.00  |   | 40      |   | 22      |   | 50.00  |
| Trans        Austria Gasleitung GmbH |   | 43      |   | 28      |   | 89.00  |   | 39      |   | 28      |   | 89.00  |
| Supermetanol CA                      |   | 34      |   | 36      |   | 34.51  |   | 39      |   | 34      |   | 34.51  |
| Galp        Energia SGPS SA          |   | 255     |   | 126     |   | 33.34  |   | 39      |   | 88      |   | 33.34  |
| Other investments                    |   | 250     |   | 135     |   |   |   | 297     |   | 231     |   |   |
|                                 |   | **906** |   | **580** |   |   |   | **761** |   | **715** |   |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

The share of loss of equity-accounted investmentsof euro 105 million primarily related to Enirepsa Gas Ltd (euro44 million) and Lipardiz - Construção de Estruturas MaritimasLda (euro 40 million).

Other changes of euro 401 million are due to theexclusion from the equity-accounted investments and the inclusionin the consolidation area of Burren Energy Plc after theacquisition of control by the Exploration & Productionsegment (euro 592 million), the disposal of Gaztransport etTechnigaz SAS (euro 115 million). These effects were partiallyoffset by the inclusion in the equity-accounted investments ofAngola LNG Ltd (euro 175 million).

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The following table sets out the net carryingamount relating to equity-accounted: 

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

|   |   | Net carrying amount |   | Eni’s interest % |   | Net carrying amount |   | Eni’s interest % |
|--------|--------|---------------------|--------|-----------------------|--------|---------------------|--------|-----------------------|
|   |   |                     |   |                       |   |                     |   |                       |

| Investments in unconsolidated entities        controlled by Eni:     |   |      |   |   |   |      |   |   |
|----------------------------------------------------------------------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| - Eni Btc        Ltd                                                 |   | 42        |   | 100.00 |   | 62        |   | 100.00 |
| - other investments (*)                                              |   | 99        |   |   |   | 115       |   |   |
|                                                                 |   | **141**   |   |   |   | **177**   |   |   |
| Joint ventures:                                                      |   |      |   |   |   |      |   |   |
| - Artic        Russia BV                                             |   | 925       |   | 60.00  |   | 895       |   | 60.00  |
| - Unión Fenosa Gas SA                                           |   | 507       |   | 50.00  |   | 499       |   | 50.00  |
| - Blue        Stream Pipeline Co BV                                  |   | 298       |   | 50.00  |   | 351       |   | 50.00  |
| - EnBW Eni Verwaltungsgesellschaft mbH                               |   | 256       |   | 50.00  |   | 268       |   | 50.00  |
| - Azienda        Energia e Servizi Torino SpA                        |   | 162       |   | 49.00  |   | 166       |   | 49.00  |
| - Eteria Parohis Aeriou Thessalonikis AE                             |   | 154       |   | 49.00  |   | 158       |   | 49.00  |
| - Toscana        Energia SpA                                         |   | 133       |   | 49.38  |   | 136       |   | 49.38  |
| - Raffineria di Milazzo ScpA                                         |   | 126       |   | 50.00  |   | 128       |   | 50.00  |
| - Trans        Austria Gasleitung GmbH                               |   | 96        |   | 89.00  |   | 109       |   | 89.00  |
| - Super Octanos CA                                                   |   | 90        |   | 49.00  |   | 90        |   | 49.00  |
| -        Supermetanol CA                                             |   | 78        |   | 34.51  |   | 90        |   | 34.51  |
| - Unimar Llc                                                         |   | 71        |   | 50.00  |   | 65        |   | 50.00  |
| - Eteria        Parohis Aeriou Thessalias AE                         |   | 41        |   | 49.00  |   | 42        |   | 49.00  |
| - Transmediterranean Pipeline Co Ltd                                 |   | 47        |   | 50.00  |   | 40        |   | 50.00  |
| -        Transitgas AG                                               |   | 30        |   | 46.00  |   | 33        |   | 46.00  |
| - Altergaz SA                                                        |   | 18        |   | 27.80  |   | 25        |   | 38.91  |
| - Lipardiz        - Construção de Estruturas Maritimas Lda |   | 88        |   | 50.00  |   | 10        |   | 50.00  |
| - FPSO Mystras - Produção de Petròleo Lda             |   | 58        |   | 50.00  |   | 2         |   | 50.00  |
| - other        investments (*)                                       |   | 132       |   |   |   | 150       |   |   |
|                                                                 |   | **3,310** |   |   |   | **3,257** |   |   |
| Associates:                                                          |   |      |   |   |   |      |   |   |
| - Galp Energia SGPS SA                                               |   | 911       |   | 33.34  |   | 862       |   | 33.34  |
| - Angola        LNG Ltd                                              |   |      |   |   |   | 453       |   | 13.60  |
| - Ceska Rafinerska AS                                                |   | 325       |   | 32.44  |   | 323       |   | 32.44  |
| - United        Gas Derivatives Co                                   |   | 140       |   | 33.33  |   | 128       |   | 33.33  |
| - ACAM Gas SpA                                                       |   | 45        |   | 49.00  |   | 46        |   | 49.00  |
| -        Distribuidora de Gas del Centro SA                          |   | 33        |   | 31.35  |   | 32        |   | 31.35  |
| - Burren Energy Plc                                                  |   | 592       |   | 24.90  |   |      |   |   |
| - other        investments (*)                                       |   | 142       |   |   |   | 193       |   |   |
|                                                                 |   | **2,188** |   |   |   | **2,037** |   |   |
|                                                                 |   | **5,639** |   |   |   | **5,471** |   |   |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                            |
|--------------|--------------|--------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein did not exceed euro 25        million. |

The net carrying amount of investments in notconsolidated entities controlled by Eni, joint ventures andassociates include the differences between purchase price andEni’s equity in investments of euro 615 million. Suchdifferences primarily related to Unión Fenosa Gas SA (euro 195million), EnBW - Eni Verwaltungsgesellschaft mbH (euro 187million), Galp Energia SGPS SA (euro 106 million) and CeskaRafinerska AS (euro 97 million).

Artic Russia BV (the former Eni Russia BV) held100% interest in three Russian companies acquired on April 4,2007 in partnership with Enel (Eni 60%, Enel 40%), followingaward of a bid for Lot 2 in the Yukos liquidation procedure. Thethree companies – OAO Arctic Gas, OAO Urengoil and OAONeftegaztechnologiya – engage in exploration and developmentof gas reserves.

Eni and Enel granted to Gazprom a call option toacquire a 51% interest in the three companies to be exercisableby Gazprom within 24 months from the acquisition date. Eniassesses the investment in Artic Russia BV under the equitymethod as it jointly controls the three entities based on ongoingshareholder arrangements, therefore exercising significantinfluence in the financial and operating policy decisions of theinvestees. This 60% interest corresponds to the present ownershipinterest of Eni in the acquired companies determined by nottaking 

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into account the possible exercise of the calloption by Gazprom. The carrying amount of the three entities islower than the strike price of the call option with respect tothe underlying stake. The strike price equals the bid priceadjusted by subtracting dividends received and adding possibleshare capital increases, a contractual remuneration of 9.4% onthe capital employed and additional financing expenses.

The fair value of listed investments was asfollows:

|         |         | **Shares** |         | **Ownership**        (%) |         | **Price        per share**        (euro) |         | **Fair        value**        (euro million) |
|--------------|--------------|------------|--------------|--------------------------|--------------|------------------------------------------|--------------|---------------------------------------------|
|    |    |            |    |                          |    |                                          |    |                                             |

| Galp Energia SGPS SA |   | 276,472,160 |   | 33.34 |   | 7.18 |   | 1,985 |
|----------------------|--------|-------------|--------|-------|--------|------|--------|-------|
| Altergaz        SA   |   | 1,050,892   |   | 38.91 |   | 9.90 |   | 10    |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

The table below sets out the provisions forlosses included in the provisions for contingencies of euro 119million (euro 135 million at December 31, 2007), primarilyrelated to the following equity-accounted investments:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Charville - Consultores e Serviços Lda                                 |   | 31      |   | 33      |
|-----------------------------------------------------------------------------|--------|---------|--------|---------|
| Polimeri        Europa Elastomeres France SA (under liquidation)            |   | 50      |   | 31      |
| Industria Siciliana Acido Fosforico - ISAF - SpA        (under liquidation) |   | 28      |   | 27      |
| Southern        Gas Constructors Ltd                                        |   | 14      |   | 17      |
| Other investments                                                           |   | 12      |   | 11      |
|                                                                        |   | **135** |   | **119** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

**Other investments**Other investments were as follows:

| (euro        million) |   | **Net value at the beginning of the year** |   | **Acquisition and subscriptions** |   | **Currency translation differences** |   | **Other changes** |   | **Net value at the end of the year** |   | **Gross value at the end of the year** |   | **Accumulated impairment charges** |
|-----------------------|--------|--------------------------------------------|--------|-----------------------------------|--------|--------------------------------------|--------|-------------------|--------|--------------------------------------|--------|----------------------------------------|--------|------------------------------------|
|                  |   |                                            |   |                                   |   |                                      |   |                   |   |                                      |   |                                        |   |                                    |

| **Dec. 31, 2007**                                               |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |
|-----------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|--------|--------|
| Investments        in unconsolidated entities controlled by Eni |   | 21      |   |   | 3       |   |   | (1      | )      |   | 2       |   |   | 25      |   |   | 36      |   |   | 11     |   |
| Associates                                                      |   | 9       |   |   |    |   |   |    |   |   | 1       |   |   | 10      |   |   | 11      |   |   | 1      |   |
| Other        investments                                        |   | 330     |   |   | 190     |   |   | (36     | )      |   | (47     | )      |   | 437     |   |   | 443     |   |   | 6      |   |
|                                                            |   | **360** |   |   | **193** |   |   | **(37** | **)**  |   | **(44** | **)**  |   | **472** |   |   | **490** |   |   | **18** |   |
| **Dec. 31, 2008**                                               |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |    |   |   |   |   |
| Investments in unconsolidated entities        controlled by Eni |   | 25      |   |   | 1       |   |   |    |   |   | 4       |   |   | 30      |   |   | 41      |   |   | 11     |   |
| Associates                                                      |   | 10      |   |   |    |   |   |    |   |   | (6      | )      |   | 4       |   |   | 28      |   |   | 24     |   |
| Other investments                                               |   | 437     |   |   | 5       |   |   | 11      |   |   | (77     | )      |   | 376     |   |   | 382     |   |   | 6      |   |
|                                                            |   | **472** |   |   | **6**   |   |   | **11**  |   |   | **(79** | **)**  |   | **410** |   |   | **451** |   |   | **41** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Investments in not consolidated entities controlled by Eni andassociates are stated at cost net of impairment losses. Otherinvestments, for which fair value cannot be reliably determined,were recognized at cost and adjusted for impairment losses.

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The net carrying amount of other investments ofeuro 410 million (euro 472 million at December 31, 2007) wasrelated to the following entities: 

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

|   |   | Net carrying amount |   | Eni’s interest % |   | Net carrying amount |   | Eni’s interest % |
|--------|--------|---------------------|--------|-----------------------|--------|---------------------|--------|-----------------------|
|   |   |                     |   |                       |   |                     |   |                       |

| Investments in unconsolidated entities        controlled by Eni (*) |   | **25**  |   |   |   | **30**  |   |   |
|---------------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|--------|
| Associates                                                          |   | **10**  |   |   |   | **4**   |   |   |
| Other investments:                                                  |   |    |   |   |   |    |   |   |
| -        Interconnector (UK) Ltd                                    |   | 22      |   | 5.00   |   | 135     |   | 16.06  |
| - Nigeria LNG Ltd                                                   |   | 80      |   | 10.40  |   | 85      |   | 10.40  |
| - Darwin        LNG Pty Ltd                                         |   | 87      |   | 10.99  |   | 83      |   | 10.99  |
| - Angola LNG Ltd                                                    |   | 175     |   | 13.60  |   |    |   |   |
| - other (*)                                                         |   | 73      |   |   |   | 73      |   |   |
|                                                                |   | **437** |   |   |   | **376** |   |   |
|                                                                |   | **472** |   |   |   | **410** |   |   |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                            |
|--------------|--------------|--------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein did not exceed euro 25        million. |

Provisions for losses related to otherinvestments, included within the provisions for contingencies,amounted to euro 44 million (euro 28 million at December 31,2007) and were primarily in relation to the following entities:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Caspian Pipeline Consortium R - Closed Joint        Stock Co |   | 25     |   | 24     |
|--------------------------------------------------------------|--------|--------|--------|--------|
| Burren        Energy Ship Management Ltd (Cyprus)            |   |   |   | 17     |
| Other investments                                            |   | 3      |   | 3      |
|                                                         |   | **28** |   | **44** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

**Other information about investments**The following table summarizes key financial data, net toEni, as disclosed in the latest available financial statements ofnot consolidated entities controlled by Eni, joint ventures andassociates:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

|   |   | Not consolidated entities controlled by Eni |   | Joint ventures |   | Associates |   | Not consolidated entities controlled by Eni |   | Joint ventures |   | Associates |
|--------|--------|---------------------------------------------|--------|----------------|--------|------------|--------|---------------------------------------------|--------|----------------|--------|------------|
|   |   |                                             |   |                |   |            |   |                                             |   |                |   |            |

| Total assets              |   | 1,247 |   | 7,781 |   | 4,252 |   | 1,361 |   | 7,761 |   | 4,020 |
|---------------------------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|
| Total        liabilities  |   | 1,111 |   | 4,526 |   | 2,061 |   | 1,230 |   | 4,565 |   | 1,958 |
| Net sales from operations |   | 99    |   | 4,667 |   | 5,134 |   | 134   |   | 5,303 |   | 5,067 |
| Operating        profit   |   | 14    |   | 674   |   | 502   |   | 2     |   | 736   |   | 702   |
| Net profit                |   | 14    |   | 318   |   | 410   |   | 20    |   | 490   |   | 690   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

The total assets and liabilities of notconsolidated controlled entities of euro 1,361 million and euro1,230 million, respectively (euro 1,247 million and euro 1,111million at December 31, 2007) concerned for euro 923 million andeuro 923 million (euro 873 million and euro 873 million atDecember 31, 2007) entities for which consolidation does notproduce significant effects.

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**13 Other financial assets**Other financial assets were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Financing receivables:                                      |   |    |   |      |
|-------------------------------------------------------------|--------|---------|--------|-----------|
| -        receivables for financing operating activities     |   | 677     |   | 1,084     |
| - receivables for financing non-operating        activities |   | 225     |   |      |
|                                                        |   | **902** |   | **1,084** |
| Securities:                                                 |   |    |   |      |
| -        securities held for operating purposes             |   | 21      |   | 50        |
|                                                        |   | **21**  |   | **50**    |
|                                                        |   | **923** |   | **1,134** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Financing receivables are presented net of theallowance for impairment losses of euro 26 million (euro 24million at December 31, 2007). Operating financing receivables ofeuro 1,084 million (euro 677 million at December 31, 2007)primarily concerned loans made by the Exploration &Production segment (euro 754 million), Refining & Marketingsegment (euro 109 million) and Gas & Power segment (euro 76million), as well as receivables for financial leasing (euro 128million). Receivables for financial leasing related to thedisposal of the Belgian gas network by Finpipe GIE, companyincluded in the consolidation area after the acquisition ofcontrol by the Gas & Power segment of Distrigas NV. Thefollowing table shows principal receivable by maturity date,which was obtained by summing future lease payment receivablesdiscounted at the effective interest rate, interest and thenominal value of future lease receivables: 

| (euro        million) |   | **Maturity range** |   |
|-----------------------|--------|--------------------|--------|
|                  |   |                    |   |

|    |    | Within 12 months |    | Between one and five years |    | Beyond five years |    | Total |
|--------------|--------------|------------------|--------------|----------------------------|--------------|-------------------|--------------|-------|
|         |         |                  |         |                            |         |                   |         |       |

| Principal receivable                        |   | 19 |   | 95  |   | 33 |   | 147 |
|---------------------------------------------|--------|----|--------|-----|--------|----|--------|-----|
| Interests                                   |   | 4  |   | 13  |   | 2  |   | 19  |
| Undiscounted value of future lease payments |   | 23 |   | 108 |   | 35 |   | 166 |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

Receivables with a maturity date within one year are shown incurrent assets in the item trade receivables for operatingpurposes – current portion of long-term receivables in theNote 3 - Trade and other receivables.

Non-operating financing receivables of euro 225 million atDecember 31, 2007 concerning a restricted deposit held by EniLasmo Plc as a guarantee of a debenture have been reclassified tocurrent assets in the item financing receivables for nonoperating purposes in the Note 3 - Trade and other receivables.

Receivables in currencies other than euro amounted to euro 827million (euro 821 million at December 31, 2007).

Receivables due beyond five years amounted to euro 617 million(euro 509 million at December 31, 2007).

Securities of euro 50 million (euro 21 million at December 31,2007), designated as held-to-maturity investments, are listedsecurities, issued by foreign governments (euro 30 million) andby the Italian Government (euro 20 million). The increase of euro29 million referred to Banque Eni SA.

Securities with a maturity beyond five years amounted to euro20 million.

The fair value of financing receivables and securities did notdiffer significantly from their carrying amount. The fair valueof financing receivables has been determined based on the presentvalue of expected future cash flows discounted at rates rangingfrom 1.9% to 3.9% (3.8% and 6.0% at December 31, 2007). The fairvalue of securities was derived from quoted market prices.

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**14 Deferred tax assets**Deferred tax assets were recognized net of deferred taxliabilities able to be offset for euro 3,468 million (euro 3,526million at December 31, 2007).

| (euro        million) |   | **Value at         Dec. 31, 2007** |   | **Additions** |   | **Deductions** |   | **Currency translation differences** |   | **Other changes** |   | **Value at         Dec. 31, 2008** |
|-----------------------|--------|------------------------------------|--------|---------------|--------|----------------|--------|--------------------------------------|--------|-------------------|--------|------------------------------------|
|                  |   |                                    |   |               |   |                |   |                                      |   |                   |   |                                    |

|   |   | **1,915** |   |   | 1,778 |   |   | (767 | ) |   | (43 | ) |   | 29 |   |   | **2,912** |   |
|--------|--------|-----------|--------|--------|-------|--------|--------|------|---|--------|-----|---|--------|----|--------|--------|-----------|--------|

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Deferred tax assets are described in Note 24 -Deferred tax liabilities.

**15 Other non-current********receivables**The following table provides an analysis of other non-currentreceivables:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Tax receivables from:                                    |   |      |   |      |
|----------------------------------------------------------|--------|-----------|--------|-----------|
| - Italian        tax authorities                         |   |      |   |      |
|   . income tax                                 |   | 486       |   | 24        |
|   .        interest on tax credits             |   | 325       |   | 58        |
|   . Value Added Tax (VAT)                      |   | 42        |   | 2         |
|   .        other                               |   | 11        |   |      |
|                                                     |   | **864**   |   | **84**    |
| - foreign        tax authorities                         |   | 30        |   | 28        |
|                                                     |   | **894**   |   | **112**   |
| Other        receivables:                                |   |      |   |      |
| - in relation to disposals                               |   | 7         |   | 780       |
| - other        non-current receivables                   |   | 197       |   | 268       |
|                                                     |   | **204**   |   | **1,048** |
| Fair value        cash flow hedge derivative instruments |   |      |   | 197       |
| Other asset                                              |   | 12        |   | 44        |
|                                                     |   | **1,110** |   | **1,401** |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The decrease of tax receivables of euro 782 million primarilyreferred to Eni SpA which obtained the reimbursement of theincome tax and of the related interest of euro 746 million.

The other receivables related to disposals amounting to euro780 million related to: (i) the receivable of euro 501 millionrecognized after the agreement settled with the Republic ofVenezuela according to which Eni will receive a cash compensationfor the expropriated Dación assets, for a part already received,to be paid in seven annual installments which yields interestincome from the date of the settlement. More information isincluded in Note 9 - Other assets; and (ii) the receivable ofeuro 275 million related to the disposal of the interest of 1.71%in the Kashagan project to the local partner kazMunaiGas on thebasis of the agreements defined with the international partnersof the North Caspian Sea PSA and the Kashagan government, whichare effective starting from January 1, 2008.

Fair value of the derivative contracts is determined usingmarket quotations provided by primary info-provider, or in theabsence of market information, appropriate valuation methodsgenerally accepted in the marketplace.

Fair value of the cash flow hedge derivatives of euro 197million referred to Distrigas NV (euro 105 million) and to theExploration & Production segment (euro 92 million). Furtherinformation on cash flow hedge derivatives is given in Note 7 -Other current assets; fair value related to the contractsexpiring beyond 2009 is given in Note 25 - Other non-currentliabilities; fair value related to the contracts expiring in 2009is indicated in Note 7 - Other current assets and in Note 20 -Other current liabilities. The effects of the evaluation at fairvalue of cash flow hedge derivatives are given in Note 27 -Shareholders’ equity and in Note 32 - Finance income(expense).

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The nominal value of cash flow hedge derivativesreferred to purchase and sale commitments for euro 64 million andeuro 1,268 million. Information on the hedged risks and thehedging policies is given in Note 29 - Guarantees, commitmentsand risks.

**Current liabilities****16 Short-term debt**Short-term debt was as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Banks                        |   | 4,070     |   | 2,411     |   |
|------------------------------|--------|-----------|--------|-----------|--------|
| Ordinary        bonds        |   | 3,176     |   | 3,663     |   |
| Other financial institutions |   | 517       |   | 285       |   |
|                         |   | **7,763** |   | **6,359** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Short-term debt decreased by euro 1,404 millionprimarily due to the balance of repayments and new proceeds (euro1,652 million), partially offset by currency translationdifferences (euro 193 million) and changes in the consolidationarea (euro 48 million) due to the acquisition of Distrigas NV bythe Gas & Power segment (euro 76 million) and the disposal ofAgip España SA by the Refining & Marketing segment (euro 28million). Debt comprised commercial paper of euro 3,663 million(euro 3,176 million at December 31, 2007) mainly issued by thefinancial company Eni Coordination Center SA.

Short-term debt per currency is shown in thetable below:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Euro               |   | 5,453     |   | 3,801     |   |
|--------------------|--------|-----------|--------|-----------|--------|
| U.S.        dollar |   | 1,591     |   | 1,332     |   |
| Other currencies   |   | 719       |   | 1,226     |   |
|               |   | **7,763** |   | **6,359** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

In 2008, the weighted average interest rate onshort-term debt was 4.2% (4.9% in 2007).

At December 31, 2008 Eni had undrawn committedand uncommitted borrowing facilities available of euro 3,313million and euro 7,696 million, respectively (euro 5,006 millionand euro 6,298 million at December 31, 2007). These facilitieswere under interest rates that reflected market conditions.Charges for unutilized facilities were not significant.

**17 Trade and other payables******Trade and other payables were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Trade payables                           |   | 11,092     |   | 12,590     |   |
|------------------------------------------|--------|------------|--------|------------|--------|
| Advances                                 |   | 1,483      |   | 2,916      |   |
| Other payables:                          |   |       |   |       |   |
| - related        to capital expenditures |   | 1,301      |   | 1,716      |   |
| - others                                 |   | 3,240      |   | 3,293      |   |
|                                     |   | **4,541**  |   | **5,009**  |   |
|                                     |   | **17,116** |   | **20,515** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

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The increase of euro 1,498 million in trade payables wasprimarily related to the Gas & Power segment (euro 1,417million), the Engineering & Construction segment (euro 630million), the Exploration & Production segment (euro 658million) and was partly offset by a decrease relating to theRefining & Marketing segment (euro 942 million) and thePetrochemical segment (euro 251 million).

Advances of euro 2,916 million (euro 1,483 million at December31, 2007) were related to advances on contract work in progressfor euro 2,516 million (euro 996 million at December 31, 2007)and other advances for euro 400 million (euro 487 million atDecember 31, 2007).

Advances on contract work in progress were in respect of theEngineering & Construction segment.

Other payables were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Payables due to:                                                                 |   |      |   |      |   |
|----------------------------------------------------------------------------------|--------|-----------|--------|-----------|--------|
| - joint        venture operators in exploration and production        activities |   | 1,624     |   | 2,007     |   |
| - suppliers in relation to investments                                           |   | 1,015     |   | 1,057     |   |
| -        non-financial government entities                                       |   | 397       |   | 441       |   |
| - employees                                                                      |   | 257       |   | 400       |   |
| - social        security entities                                                |   | 226       |   | 284       |   |
|                                                                             |   | **3,519** |   | **4,189** |   |
| Other        payables                                                            |   | 1,022     |   | 820       |   |
|                                                                             |   | **4,541** |   | **5,009** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Payables to related parties are described in Note37 - Transactions with related parties.

The fair value of trade and other payables didnot differ significantly from their carrying amount consideringthe short-term maturity of trade payables.

**18 Income taxes payable**Income taxes payable were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Italian subsidiaries        |   | 247       |   | 808       |   |
|-----------------------------|--------|-----------|--------|-----------|--------|
| Foreign        subsidiaries |   | 1,441     |   | 1,141     |   |
|                        |   | **1,688** |   | **1,949** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Income taxes payable by Italian subsidiaries were affected bythe fair value valuation of cash flow hedging derivatives (euro291 million). This effect was recorded in the relevant provisionwithin equity. Further information is provided in Note 7 - Othercurrent assets, Note 15 - Other non-current receivables, Note 20- Other current liabilities and Note 25 - Other non-currentliabilities.

**19 Other taxes payable**Other taxes payable were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Excise and customs duties     |   | 804       |   | 920       |   |
|-------------------------------|--------|-----------|--------|-----------|--------|
| Other        taxes and duties |   | 579       |   | 740       |   |
|                          |   | **1,383** |   | **1,660** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

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##### Table of Contents

**20 Other current liabilities******Other current liabilities were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Fair value of non-hedging derivatives            |   | 412       |   | 1,982     |   |
|--------------------------------------------------|--------|-----------|--------|-----------|--------|
| Fair value        of cash flow hedge derivatives |   | 911       |   | 452       |   |
| Other liabilities                                |   | 233       |   | 1,885     |   |
|                                             |   | **1,556** |   | **4,319** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Fair value of non-hedging derivative contractswas as follows:

|   |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |

| (euro        million) |    | Fair value |    | Purchase commitments |    | Sale commitments |    | Fair value |    | Purchase commitments |    | Sale commitments |
|-----------------------|--------------|------------|--------------|----------------------|--------------|------------------|--------------|------------|--------------|----------------------|--------------|------------------|
|                  |         |            |         |                      |         |                  |         |            |         |                      |         |                  |

| **Non-hedging derivatives on exchange rate**        |   |    |   |      |   |    |   |      |   |      |   |      |
|-----------------------------------------------------|--------|---------|--------|-----------|--------|---------|--------|-----------|--------|-----------|--------|-----------|
| Currency        swap                                |   | 63      |   | 2,096     |   | 296     |   | 293       |   | 1,928     |   | 2,479     |
| Interest currency swap                              |   | 5       |   | 140       |   |    |   | 82        |   | 694       |   | 100       |
| Other                                               |   | 7       |   | 76        |   | 1       |   | 327       |   | 151       |   | 1,197     |
|                                                |   | **75**  |   | **2,312** |   | **297** |   | **702**   |   | **2,773** |   | **3,776** |
| **Non-hedging        derivatives on interest rate** |   |    |   |      |   |    |   |      |   |      |   |      |
| Interest rate swap                                  |   | 24      |   | 722       |   | 401     |   | 134       |   | 641       |   | 3,002     |
|                                                |   | **24**  |   | **722**   |   | **401** |   | **134**   |   | **641**   |   | **3,002** |
| **Non-hedging derivatives on commodities**          |   |    |   |      |   |    |   |      |   |      |   |      |
| Over the        counter                             |   | 12      |   | 49        |   | 58      |   | 1,090     |   | 3,297     |   | 388       |
| Other                                               |   | 301     |   | 1,187     |   | 28      |   | 56        |   | 66        |   | 119       |
|                                                |   | **313** |   | **1,236** |   | **86**  |   | **1,146** |   | **3,363** |   | **507**   |
|                                                |   | **412** |   | **4,270** |   | **784** |   | **1,982** |   | **6,777** |   | **7,285** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Fair value of derivative contracts was determined by usingmarket quotations reported by major market data providers, or, ifno market information was available, on the basis of valuationmodels generally accepted in the marketplace.

The increase in the fair value of non-hedging derivatives ofeuro 1,570 million comprises the inclusion of the derivativecontracts held by Distrigas NV which has been included in theconsolidation area following the acquisition of control by theGas & Power segment (euro 873 million).

The fair value of cash flow hedges amounted to euro 452million (euro 911 million at December 31, 2007) and related toDistrigas NV for euro 415 million and the Exploration &Production segment for euro 37 million (euro 911 million atDecember 31, 2007). Further information on cash flow hedgederivatives is given in Note 7 - Other current assets. The fairvalue related to the contracts expiring in 2009 is given in Note7 - Other current assets, in Note 15 - Other non-currentreceivables and in Note 25 - Other non-current liabilities. Theeffects of fair value valuation of cash flow hedging derivativesare given in Note 27 - Shareholders’ equity and in Note 32 -Finance income (expense).

The nominal value of cash flow hedge derivativesreferred to purchase and sale commitments for euro 989 millionand euro 895 million, respectively (euro 1,399 million and euro1,977 million at December 31, 2007).

Information on the hedged risks and the hedgingpolicies is given in Note 29 - Guarantees, commitments and risks.

Other liabilities of euro 1,885 million (euro 233million at December 31, 2007) comprised the put option granted toPubligaz (the Distrigas minority shareholder) to divest its31.25% stake in Distrigas to Eni for a total amount of euro 1,495million based on the same per-share price of the ongoingmandatory tender offer to minorities as part of the Distrigasacquisition as provided for the Shareholders Agreement signed bythe two partners on July 30, 2008. This liability was recognizedagainst the Group’s net equity. In subsequent periods,changes in the put option value will be recognized against theprofit and loss account.

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**Non-current liabilities****21 Long-term debt and current portion oflong-term debt**Long-term debt included the current portion maturingduring the year following the balance sheet date (currentmaturity). The table below analyzes debt by year of forecastedrepayment:

| (euro million) |   | **At December 31** |   |   |   | **Long-term maturity** |
|----------------|--------|--------------------|--------|--------|--------|------------------------|
|           |   |                    |   |   |   |                        |

| Type of debt instrument |   | Maturity range |   | 2007 |   | 2008 |   | Current maturity 2009 |   | 2010 |   | 2011 |   | 2012 |   | 2013 |   | After |   | Total |
|-------------------------|--------|----------------|--------|------|--------|------|--------|-----------------------|--------|------|--------|------|--------|------|--------|------|--------|-------|--------|-------|
|                    |   |                |   |      |   |      |   |                       |   |      |   |      |   |      |   |      |   |       |   |       |

| Towards banks:                        |   |          |   |       |   |       |   |    |   |      |   |    |   |      |   |      |   |      |   |       |
|---------------------------------------|--------|---------------|--------|------------|--------|------------|--------|---------|--------|-----------|--------|---------|--------|-----------|--------|-----------|--------|-----------|--------|------------|
| - bank        loans                   |   | **2009-2019** |   | 6,073      |   | 6,896      |   | 145     |   | 2,503     |   | 600     |   | 2,584     |   | 324       |   | 740       |   | 6,751      |
| - other bank loans at favorable rates |   | **2009-2012** |   | 9          |   | 6          |   | 2       |   | 2         |   | 1       |   | 1         |   |      |   |      |   | 4          |
| - other                               |   | **2009-2010** |   |       |   | 101        |   |    |   | 101       |   |    |   |      |   |      |   |      |   | 101        |
|                                  |   |          |   | **6,082**  |   | **7,003**  |   | **147** |   | **2,606** |   | **601** |   | **2,585** |   | **324**   |   | **740**   |   | **6,856**  |
| Ordinary        bonds                 |   | **2009-2037** |   | 5,386      |   | 6,843      |   | 360     |   | 844       |   | 133     |   | 40        |   | 1,602     |   | 3,864     |   | 6,483      |
| Other financial institutions          |   | **2009-2020** |   | 599        |   | 632        |   | 42      |   | 180       |   | 63      |   | 62        |   | 55        |   | 230       |   | 590        |
|                                  |   |          |   | **12,067** |   | **14,478** |   | **549** |   | **3,630** |   | **797** |   | **2,687** |   | **1,981** |   | **4,834** |   | **13,929** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Long-term debt, including the current portion of long-termdebt, of euro 14,478 million (euro 12,067 million at December 31,2007) increased by euro 2,411 million. The increase mainlyreflected the balance of payments and new proceeds of euro 2,466million as well as the change in the consolidation area (euro 286million) primarily due to the acquisition of First CalgaryPetroleums Ltd by the Exploration & Production segment thataccounts for euro 229 million.

This increase was offset by the negative impact of foreigncurrency translation differences and translation differencesarising on debt taken on by euro-reporting subsidiariesdenominated in foreign currencies which are translated into euroat year-end exchange rates (euro 383 million).

Debt from other financial institutions of euro 632 millionincluded euro 161 million of finance lease transactions. Thefollowing table shows principal outstanding by maturity date,which was obtained by summing future lease payments discounted atthe effective interest rate, interest and the nominal value offuture lease payments:

|   |   | **Maturity range** |   |
|--------|--------|--------------------|--------|
|   |   |                    |   |

| (euro        million) |    | Within 12 months |    | Between one and five years |    | Beyond five years |    | Total |
|-----------------------|--------------|------------------|--------------|----------------------------|--------------|-------------------|--------------|-------|
|                  |         |                  |         |                            |         |                   |         |       |

| Principal debt outstanding                  |   | 134 |   | 22 |   | 5 |   | 161 |
|---------------------------------------------|--------|-----|--------|----|--------|---|--------|-----|
| Interests                                   |   | 3   |   | 5  |   | 2 |   | 10  |
| Undiscounted value of future lease payments |   | 137 |   | 27 |   | 7 |   | 171 |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

Eni entered into long-term borrowing facilities with theEuropean Investment Bank which were conditioned to themaintenance of certain performance indicators based on Eni’sconsolidated financial statements or a rating not inferior to A-(S&P) and A3 (Moody’s). At December 31, 2007 and 2008,the amount of short and long-term debt subject to restrictivecovenants was euro 1,429 million and euro 1,323 million,respectively. Furthermore, Saipem SpA entered into certainborrowing facilities for euro 75 million with a number offinancial institutions subordinated to the maintenance of certainperformance indicators based on the consolidated financialstatements of Saipem. Eni and Saipem are in compliance with thecovenants contained in their respective financing arrangements.

Bonds of euro 6,843 million consisted of bonds issued withinthe Euro Medium Term Notes Program for a total of euro 6,391million and other bonds for a total of euro 452 million.

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The following table analyses bonds per issuing entity,maturity date, interest rate and currency as at December 31,2008:

|   |   | **Amount** |   | **Discount on bond issue and accrued        expense** |   | **Total** |   | **Currency** |   | **Maturity** |   | **% rate** |
|--------|--------|------------|--------|-------------------------------------------------------|--------|-----------|--------|--------------|--------|--------------|--------|------------|
|   |   |       |   |                                                  |   |      |   |         |   |              |   |            |

| (euro        million) |   |   |   |   |   |   |   |   |   | from |   | to |   | from |   | to |
|-----------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------|--------|----|--------|------|--------|----|
|                  |   |        |   |        |   |        |   |        |   |      |   |    |   |      |   |    |

| **Issuing entity**                |   |      |   |   |   |   |      |   |   |   |   |   |   |   |   |   |     |
|-----------------------------------|--------|-----------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|--------|----------|
| *Euro        Medium Term Notes*   |   |      |   |   |   |   |      |   |   |   |   |   |   |   |   |   |     |
| Eni SpA                           |   | 1,500     |   | 43     |   |   | 1,543     |   | EUR    |   |   |   | 2013   |   |   |   | 4.625    |
| Eni SpA                           |   | 1,250     |   | (5     | )      |   | 1,245     |   | EUR    |   |   |   | 2017   |   |   |   | 4.750    |
| Eni SpA                           |   | 1,250     |   | 2      |   |   | 1,252     |   | EUR    |   |   |   | 2014   |   |   |   | 5.875    |
| Eni        Coordination Center SA |   | 682       |   | 7      |   |   | 689       |   | GBP    |   | 2010   |   | 2019   |   | 4.875  |   | 6.125    |
| Eni SpA                           |   | 500       |   | 16     |   |   | 516       |   | EUR    |   |   |   | 2010   |   |   |   | 6.125    |
| Eni        Coordination Center SA |   | 366       |   | 1      |   |   | 367       |   | YEN    |   | 2012   |   | 2037   |   | 1.150  |   | 2.810    |
| Eni Coordination Center SA        |   | 350       |   | 10     |   |   | 360       |   | EUR    |   | 2010   |   | 2028   |   | 2.876  |   | 5.441    |
| Eni        Coordination Center SA |   | 183       |   | 2      |   |   | 185       |   | USD    |   | 2013   |   | 2015   |   | 4.450  |   | 4.800    |
| Eni Coordination Center SA        |   | 165       |   | 4      |   |   | 169       |   | EUR    |   | 2009   |   | 2015   |   |   |   | variable |
| Eni        Coordination Center SA |   | 34        |   |   |   |   | 34        |   | CHF    |   |   |   | 2010   |   |   |   | 2.043    |
| Eni Coordination Center SA        |   | 32        |   | (1     | )      |   | 31        |   | USD    |   |   |   | 2013   |   |   |   | variable |
|                              |   | **6,312** |   | **79** |   |   | **6,391** |   |   |   |   |   |   |   |   |   |     |
| *Other bonds*                     |   |      |   |   |   |   |      |   |   |   |   |   |   |   |   |   |     |
| Eni USA        Inc                |   | 287       |   | 3      |   |   | 290       |   | USD    |   |   |   | 2027   |   |   |   | 7.300    |
| Eni Lasmo Plc (*)                 |   | 157       |   | (6     | )      |   | 151       |   | GBP    |   |   |   | 2009   |   |   |   | 10.375   |
| Eni UK        Holding Plc         |   | 11        |   |   |   |   | 11        |   | GBP    |   |   |   | 2013   |   |   |   | variable |
|                              |   | **455**   |   | **(3** | **)**  |   | **452**   |   |   |   |   |   |   |   |   |   |     |
|                              |   | **6,767** |   | **76** |   |   | **6,843** |   |   |   |   |   |   |   |   |   |     |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|      |      |                                                                                                                         |
|--------------------------|--------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
| (*)                      |           | The bond is        guaranteed by a restricted cash deposit recorded under        non-current financial assets (euro 173 million). |

As at December 31, 2008 bonds maturing within 18 months (euro412 million) were issued by Eni Coordination Center SA for euro261 million and by Eni Lasmo Plc for euro 151 million. During2008, Eni SpA, Eni Coordination Center SA and Eni UK Holding Plcissued bonds for euro 1,499 million, euro 302 million and euro 11million respectively.

The following table shows the currency composition oflong-term debt and its current portion, and the related weightedaverage interest rates on total borrowings.

|   |   | **Dec. 31, 2007******(euro million) |   | **Average rate**        (%) |   | **Dec. 31, 2008******(euro million) |   | **Average rate**        (%) |
|--------|--------|-------------------------------------|--------|-----------------------------|--------|-------------------------------------|--------|-----------------------------|
|   |   |                                     |   |                             |   |                                     |   |                             |

| Euro                |   | 9,973      |   | 4.4    |   | 12,284     |   | 4.2    |
|---------------------|--------|------------|--------|--------|--------|------------|--------|--------|
| U.S.        dollar  |   | 900        |   | 8.6    |   | 912        |   | 6.1    |
| British pound       |   | 882        |   | 6.2    |   | 859        |   | 6.2    |
| Japanese        yen |   | 281        |   | 1.9    |   | 367        |   | 2.0    |
| Other currencies    |   | 31         |   | 2.0    |   | 56         |   | 3.8    |
|                |   | **12,067** |   |   |   | **14,478** |   |   |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

At December 31, 2008 Eni had undrawn committed long-termborrowing facilities of euro 1,850 million (euro 1,400 million atDecember 31, 2007). Interest rates on these contracts were atmarket conditions. Charges for unutilized facilities were notsignificant. 

Fair value of long-term debt, including the current portion oflong-term debt amounted to euro 15,247 million (euro 12,390million at December 31, 2007) and consisted of the following:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Ordinary bonds               |   | 5,523      |   | 7,505      |   |
|------------------------------|--------|------------|--------|------------|--------|
| Banks                        |   | 6,148      |   | 7,056      |   |
| Other financial institutions |   | 719        |   | 686        |   |
|                         |   | **12,390** |   | **15,247** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

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Fair value was calculated by discounting the expected futurecash flows at rates ranging from 1.4% to 3.9% (3.8% and 6.0% atDecember 31, 2007).

At December 31, 2008 Eni pledged restricted deposits ascollateral against its borrowings for euro 151 million (euro 198million at December 31, 2007).

Analysis of net borrowings, as defined in the "Item 5– Operating and Financial Review and Prospects",was as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

|   |   | Current |   | Non-current |   | Total |   | Current |   | Non-current |   | Total |
|--------|--------|---------|--------|-------------|--------|-------|--------|---------|--------|-------------|--------|-------|
|   |   |         |   |             |   |       |   |         |   |             |   |       |

| A. Cash and cash equivalents                      |   | 2,114     |   |       |   | 2,114      |   | 1,939     |   |       |   | 1,939      |
|---------------------------------------------------|--------|-----------|--------|------------|--------|------------|--------|-----------|--------|------------|--------|------------|
| B.        Available-for-sale securities           |   | 174       |   |       |   | 174        |   | 185       |   |       |   | 185        |
| **C. Liquidity (A+B)**                            |   | **2,288** |   |       |   | **2,288**  |   | **2,124** |   |       |   | **2,124**  |
| **D.        Financing receivables**               |   | **990**   |   | **225**    |   | **1,215**  |   | **337**   |   |       |   | **337**    |
| E. Short-term debt towards banks                  |   | 4,070     |   |       |   | 4,070      |   | 2,411     |   |       |   | 2,411      |
| F.        Long-term debt towards banks            |   | 161       |   | 5,921      |   | 6,082      |   | 147       |   | 6,856      |   | 7,003      |
| G. Bonds                                          |   | 263       |   | 5,123      |   | 5,386      |   | 360       |   | 6,483      |   | 6,843      |
| H.        Short-term debt towards related parties |   | 131       |   |       |   | 131        |   | 153       |   |       |   | 153        |
| I. Long-term debt towards related parties         |   |      |   | 16         |   | 16         |   |      |   | 9          |   | 9          |
| L. Other        short-term debt                   |   | 3,562     |   |       |   | 3,562      |   | 3,795     |   |       |   | 3,795      |
| M. Other long-term debt                           |   | 313       |   | 270        |   | 583        |   | 42        |   | 581        |   | 623        |
| **N.        Total borrowings (E+F+G+H+I+L+M)**    |   | **8,500** |   | **11,330** |   | **19,830** |   | **6,908** |   | **13,929** |   | **20,837** |
| **O. Net borrowings (N-C-D)**                     |   | **5,222** |   | **11,105** |   | **16,327** |   | **4,447** |   | **13,929** |   | **18,376** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Available-for-sale securities of euro 185 million (euro 174million at December 31, 2007) were held for non-operatingpurposes.

Not included in the calculation above were held-to-maturityand available-for-sale securities held for operating purposesamounting to euro 360 million (euro 280 million at December 31,2007), of which euro 302 million (euro 256 million at December31, 2007) were held to provide coverage of technical reserves forEni’s insurance companies.

Financing receivables of euro 337 million (euro 1,215 millionat December 31, 2007) were held for non-operating purposes.

Not included in the calculation above were financingreceivables held for operating purposes amounting to euro 487million (euro 384 million at December 31, 2007), of which euro399 million (euro 246 million at December 31, 2007) were inrespect of securities granted to non-consolidated subsidiaries,joint ventures and associates primarily in relation to theimplementation of certain capital projects and a euro 47 millioncash deposit to provide coverage of Eni Insurance Ltd technicalreserves. At December 31, 2007, non-current financial receivablesof euro 225 million were related to a restricted deposit held byEni Lasmo Plc as a guarantee of a debenture; the financialreceivable has been reclassified in the current portion for euro173 million.

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**22 Provisions for contingencies**Provisions for contingencies were as follows:

| (euro        million) |   | **Value at Dec. 31, 2007** |   | **Additions** |   | **Changes of estimated        expenditures** |   | **Accretion discount** |   | **Reversal of utilized        provisions** |   | **Reversal of unutilized        provisions** |   | **Other changes** |   | **Value at Dec. 31, 2008** |
|-----------------------|--------|----------------------------|--------|---------------|--------|----------------------------------------------|--------|------------------------|--------|--------------------------------------------|--------|----------------------------------------------|--------|-------------------|--------|----------------------------|
|                  |   |                            |   |               |   |                                              |   |                        |   |                                            |   |                                              |   |                   |   |                            |

| Provision for site restoration and abandonment                                             |   | 3,974     |   |   |      |   |   | 635     |   |   | 202     |   |   | (113     | )      |   | (8       | )      |   | (116   | )      |   | 4,574     |   |
|--------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|---------|--------|--------|---------|--------|--------|----------|--------|--------|----------|--------|--------|--------|--------|--------|-----------|--------|
| Provision        for environmental risks                                                   |   | 1,858     |   |   | 369       |   |   |    |   |   | 38      |   |   | (333     | )      |   | (9       | )      |   | 57     |   |   | 1,980     |   |
| Provision for legal and other proceedings                                                  |   | 716       |   |   | 90        |   |   |    |   |   | 1       |   |   | (30      | )      |   | (35      | )      |   | 70     |   |   | 812       |   |
| Loss        adjustments and actuarial provisions for Eni’s        insurance companies |   | 418       |   |   | 1         |   |   |    |   |   |    |   |   |     |   |   | (49      | )      |   | 34     |   |   | 404       |   |
| Provisions for the supply of goods                                                         |   | 187       |   |   | 115       |   |   |    |   |   | 6       |   |   |     |   |   |     |   |   |   |   |   | 308       |   |
| Provision        for taxes                                                                 |   | 213       |   |   | 39        |   |   |    |   |   |    |   |   | (3       | )      |   | (10      | )      |   | 21     |   |   | 260       |   |
| Provision for losses on investments                                                        |   | 163       |   |   | 21        |   |   |    |   |   |    |   |   |     |   |   | (5       | )      |   | (16    | )      |   | 163       |   |
| Provisions        for marketing and promotion initiatives                                  |   | 65        |   |   | 75        |   |   |    |   |   |    |   |   | (57      | )      |   | (2       | )      |   |   |   |   | 81        |   |
| Provision for OIL insurance                                                                |   | 80        |   |   | 14        |   |   |    |   |   |    |   |   | (13      | )      |   | (8       | )      |   | (1     | )      |   | 72        |   |
| Provision        for restructuring or decommissioning                                      |   | 130       |   |   |      |   |   |    |   |   |    |   |   |     |   |   |     |   |   | (114   | )      |   | 16        |   |
| Provision for onerous contracts                                                            |   | 50        |   |   |      |   |   |    |   |   |    |   |   | (50      | )      |   |     |   |   | 4      |   |   | 4         |   |
| Other (*)                                                                                  |   | 632       |   |   | 418       |   |   | (2      | )      |   | 2       |   |   | (151     | )      |   | (73      | )      |   | 73     |   |   | 899       |   |
|                                                                                       |   | **8,486** |   |   | **1,142** |   |   | **633** |   |   | **249** |   |   | **(750** | **)**  |   | **(199** | **)**  |   | **12** |   |   | **9,573** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

The provision for site restoration and abandonment of euro4,574 million primarily referred to the estimation of futurecosts relating to decommissioning of oil and natural gasproduction facilities at the end of the producing lives offields, well-plugging, abandonment and site restoration (euro4,494 million). The increase in the provision for the yearamounted to euro 635 million and was primarily due to changes inthe estimates of future costs made by subsidiaries in theExploration & Production segment including Eni Norge AS (euro183 million), Eni UK Ltd (euro 90 million) and Eni Petroleum CoInc (euro 82 million) with a corresponding entry to fixed assets.Also an amount of euro 202 million was recognized through profitand loss as the accretion charge for the period.

The discount rates adopted ranged from 3.3% to 6.2% (from 4.2%to 6.2% at December 31, 2007). Other changes of euro 116 millionrelated to negative currency translation differences which arosefrom the translation of financial statements denominated incurrencies other than the euro (euro 157 million). Offsettingthis effect was the acquisition of Eni Hewett Ltd by theExploration & Production segment (euro 52 million).

The provision for environmental risks of euro 1,980 millionprimarily related to the estimated future costs of remediation inaccordance with existing laws and regulations recognized bySyndial SpA (euro 1,382 million) and the Refining & Marketingsegment (euro 454 million). The increase in the provision of euro369 million was primarily related to Syndial SpA (euro 222million) and the Refining & Marketing segment (euro 108million). Specifically, Syndial SpA recognized the estimated costof the remediation of the divested area of Crotone as theclean-up has become probable and the associated costs can bereliably estimated. The decrease of euro 333 million was relatedto the reversal of utilized provisions primarily by Syndial SpA(euro 194 million) and the Refining & Marketing segment(euro 93 million). Other changes of euro 57 million included thereclassification from the provision for restructuring ordecommissioning made by the Refining & Marketing segment(euro 114 million).

The provision for legal and other proceedings of euro 812million primarily included charges expected on failure to performcertain contractual obligations and estimated future losses onpending litigation including legal, antitrust and administrativematters. These provisions are stated on the basis of Eni’sbest estimate of the expected probable liability and primarilyrelate to the Gas & Power segment (euro 452 million), SyndialSpA (euro 225 million) and the Petrochemical segment (euro 36million). Other changes of euro 70 million were essentiallyrelated to the change in the consolidation area following theacquisition of Distrigas NV by the Gas & Power segment (euro68 million).

Loss adjustments and actuarial provisions for Eni’sinsurance companies of euro 404 million represented theliabilities accrued for claims on insurance policies underwrittenby Eni’s insurance company, Eni Insurance Ltd.

Provisions for the supply of goods for euro 308 millionrelated to Eni SpA and included the estimated costs of the supplycontracts.

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The provision for taxes of euro 260 million primarily includedcharges for unsettled tax claims in connection with uncertainapplications of the tax regulation for foreign subsidiaries ofthe Exploration & Production segment (euro 193 million).

The provision for losses on investments of euro 163 millionwas made with respect to losses on investments in entitiesincurred to date where the losses exceeded the carrying amount ofthe investments.

The provision for marketing and promotional initiativesamounted to euro 81 million and was made in respect of marketinginitiatives involving awards and prizes to clients in theRefining & Marketing segment.

The provision for OIL insurance cover of euro 72 millionincluded a mutual insurance provision for future increases ininsurance charge as a result of past accidents that will be paidin the next 5 years by Eni for participating in the mutualinsurance policy of Oil Insurance Ltd.

The provision for restructuring or decommissioning of unusedproduction facilities of euro 16 million was primarily made forthe estimated future costs of site restoration and remediation inconnection with divestments and the closing of facilities in theRefining & Marketing segment (euro 10 million). Other changesof euro 114 million related to a reclassification to theprovision for environmental risks made by the Refining &Marketing segment.

The provision for onerous contracts of euro 4 million relatedto contracts for which the termination or execution costs exceedthe benefits. The reversal of utilized provisions related toSyndial SpA.

**23 Provisions for employee benefits**Provisions for employee benefits were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| TFR                                                                                           |   | 499     |   | 458     |   |
|-----------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|
| Foreign        pension plans                                                                  |   | 219     |   | 223     |   |
| Supplementary medical reserve for Eni managers        (FISDE) and other foreign medical plans |   | 99      |   | 98      |   |
| Other        benefits                                                                         |   | 118     |   | 168     |   |
|                                                                                          |   | **935** |   | **947** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Provisions for indemnities upon termination of employmentprimarily related to the provisions accrued by Italian companiesfor employee termination indemnities ("TFR"),determined using actuarial techniques and regulated by Article2120 of the Italian Civil Code.

The indemnity is paid upon retirement as a lump sum paymentthe amount of which corresponds to the total of the provisionsaccrued during the employee’s service period based onpayroll costs as revalued until retirement. Following changes inthe regime, starting from January 1, 2007, the amount alreadyaccrued and the future benefits have been transferred to apension fund or the treasury fund custodied by the Italianadministration for post-retirement benefits (INPS). Companieswith less than 50 employees can choose not to adopt the newscheme. Therefore, the allocation of future TFR provisions topension funds or the INPS treasury fund determines that theseamounts will be classified as costs to provide benefits under adefined contribution plan. Past unpaid amounts accrued as atDecember 31, 2006 for post-retirement indemnities under theItalian TFR regime continue to represent costs to providebenefits under a defined benefit plan and must be assessed basedon actuarial assumptions.

Pension funds are defined benefit plans provided by foreignsubsidiaries located mainly in Nigeria and in Germany. Benefitsunder these plans consisted of payments based on seniority andthe salary paid in the last year of service, or alternatively,the average annual salary over a defined period prior toretirement.

Group companies provide healthcare benefits to retiredmanagers. Liability to these plans and the current cost arelimited to the contributions made by the company.

Other benefits primarily related to a deferred cash incentivescheme for managers and certain Jubilee awards. The provision forthe deferred cash incentive scheme is assessed based on thelikelihood that the company will 

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reach planned targets and the employees will reach individualperformance goals. Jubilee awards are benefits due following theattainment of a minimum period of service and, for the Italiancompanies, consist of an in-kind remuneration.

The value of employee benefits, estimated by applyingactuarial techniques, consisted of the following: 

|   | **Foreign pension plans** |   |
|--------|---------------------------|--------|
|   |                           |   |

| (euro        million) |   | TFR |   | Gross liability |   | Plan assets |   | FISDE        and other foreign medical plans |   | Other benefits |   | Total |
|-----------------------|--------|-----|--------|-----------------|--------|-------------|--------|----------------------------------------------|--------|----------------|--------|-------|
|                  |   |     |   |                 |   |             |   |                                              |   |                |   |       |

| **2007**                                                                                    |   |    |   |   |    |   |   |     |   |   |   |   |   |    |   |   |      |   |
|---------------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|----------|--------|--------|--------|--------|--------|---------|--------|--------|-----------|--------|
| **Current        value of benefit liabilities and plan assets at beginning        of year** |   | **614** |   |   | **771** |   |   | **(440** | **)**  |   | **91** |   |   | **95**  |   |   | **1,131** |   |
| Current cost                                                                                |   | 13      |   |   | 13      |   |   |     |   |   | 1      |   |   | 38      |   |   | 65        |   |
| Interest        cost                                                                        |   | 23      |   |   | 32      |   |   |     |   |   | 4      |   |   | 2       |   |   | 61        |   |
| Expected return on plan assets                                                              |   |    |   |   |    |   |   | (23      | )      |   |   |   |   |    |   |   | (23       | )      |
| Employee        contributions                                                               |   |    |   |   |    |   |   | (126     | )      |   |   |   |   |    |   |   | (126      | )      |
| Actuarial gains (losses)                                                                    |   | (52     | )      |   | 3       |   |   | 12       |   |   | 1      |   |   | (1      | )      |   | (37       | )      |
| Benefits        paid                                                                        |   | (64     | )      |   | (35     | )      |   | 18       |   |   | (6     | )      |   | (7      | )      |   | (94       | )      |
| Amendments                                                                                  |   | 1       |   |   | 2       |   |   |     |   |   |   |   |   |    |   |   | 3         |   |
| Curtailments        and settlements                                                         |   | (62     | )      |   | (201    | )      |   | 201      |   |   |   |   |   |    |   |   | (62       | )      |
| Currency translation differences and other        changes                                   |   | 3       |   |   | 36      |   |   | (4       | )      |   | 1      |   |   | (9      | )      |   | 27        |   |
| **Current        value of benefit liabilities and plan assets at end of        year**       |   | **476** |   |   | **621** |   |   | **(362** | **)**  |   | **92** |   |   | **118** |   |   | **945**   |   |
| **2008**                                                                                    |   |    |   |   |    |   |   |     |   |   |   |   |   |    |   |   |      |   |
| **Current value of benefit liabilities and plan        assets at beginning of year**        |   | **476** |   |   | **621** |   |   | **(362** | **)**  |   | **92** |   |   | **118** |   |   | **945**   |   |
| Current cost                                                                                |   |    |   |   | 21      |   |   |     |   |   | 1      |   |   | 48      |   |   | 70        |   |
| Interest cost                                                                               |   | 25      |   |   | 28      |   |   |     |   |   | 5      |   |   | 5       |   |   | 63        |   |
| Expected return on plan assets                                                              |   |    |   |   |    |   |   | (25      | )      |   |   |   |   |    |   |   | (25       | )      |
| Employee contributions                                                                      |   |    |   |   | (1      | )      |   | (41      | )      |   |   |   |   |    |   |   | (42       | )      |
| Actuarial gains (losses)                                                                    |   | 8       |   |   | (11     | )      |   | 102      |   |   | 3      |   |   | 3       |   |   | 105       |   |
| Benefits paid                                                                               |   | (65     | )      |   | (25     | )      |   | 20       |   |   | (7     | )      |   | (7      | )      |   | (84       | )      |
| Curtailments and settlements                                                                |   |    |   |   |    |   |   |     |   |   | (2     | )      |   |    |   |   | (2        | )      |
| Currency translation differences and other        changes                                   |   | (1      | )      |   | 169     |   |   | (147     | )      |   | 2      |   |   | 1       |   |   | 24        |   |
| **Current value of benefit liabilities and plan        assets at end of year**              |   | **443** |   |   | **802** |   |   | **(453** | **)**  |   | **94** |   |   | **168** |   |   | **1,054** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

The gross liability for foreign employee pension plans of euro802 million (euro 621 million at December 31, 2007) included theliabilities related to joint ventures operating in explorationand production activities for euro 67 million and euro 77 millionat December 31, 2007 and 2008, respectively. A receivable of anamount equivalent to such liability was recorded. Other benefitsof euro 168 million (euro 118 million at December 31, 2007)primarily concerned the deferred monetary incentive plan for euro107 million (euro 69 million at December 31, 2007) and jubileeawards for euro 47 million (euro 40 million at December 31,2007).

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The reconciliation of benefit obligations to plan assets wasas follows:

|   |   | **TFR** |   | **Foreign pension plans** |   | **FISDE and other foreign medical plans** |   | **Other benefits** |
|--------|--------|---------|--------|---------------------------|--------|-------------------------------------------|--------|--------------------|
|   |   |         |   |                           |   |                                           |   |                    |

| (euro        million) |   | Dec. 31, 2007 |   | Dec. 31, 2008 |   | Dec. 31, 2007 |   | Dec. 31, 2008 |   | Dec. 31, 2007 |   | Dec. 31, 2008 |   | Dec. 31, 2007 |   | Dec. 31, 2008 |
|-----------------------|--------|---------------|--------|---------------|--------|---------------|--------|---------------|--------|---------------|--------|---------------|--------|---------------|--------|---------------|
|                  |   |               |   |               |   |               |   |               |   |               |   |               |   |               |   |               |

| Present value of benefit obligations with plan        assets              |   |    |   |    |   | 439     |   |   | 610     |   |   |   |   |   |   |    |   |    |
|---------------------------------------------------------------------------|--------|---------|--------|---------|--------|---------|--------|--------|---------|--------|--------|--------|--------|--------|--------|---------|--------|---------|
| Present        value of plan assets                                       |   |    |   |    |   | (362    | )      |   | (453    | )      |   |   |   |   |   |    |   |    |
| **Net present value of benefit obligations with        plan assets**      |   |    |   |    |   | **77**  |   |   | **157** |   |   |   |   |   |   |    |   |    |
| **Present        value of benefit obligations without plan assets**       |   | **476** |   | **443** |   | **182** |   |   | **192** |   |   | **92** |   | **94** |   | **118** |   | **168** |
| Actuarial gains (losses) not recognized                                   |   | 23      |   | 15      |   | (33     | )      |   | (126    | )      |   | 7      |   | 4      |   |    |   |    |
| Past        service cost not recognized                                   |   |    |   |    |   | (7      | )      |   |    |   |   |   |   |   |   |    |   |    |
| **Net liabilities recognized in provisions for        employee benefits** |   | **499** |   | **458** |   | **219** |   |   | **223** |   |   | **99** |   | **98** |   | **118** |   | **168** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Costs charged to the profit and loss account were as follows: 

| (euro        million) |   | **TFR** |   | **Foreign pension plans** |   | **FISDE and other foreign medical plans** |   | **Other benefits** |   | **Total** |
|-----------------------|--------|---------|--------|---------------------------|--------|-------------------------------------------|--------|--------------------|--------|-----------|
|                  |   |         |   |                           |   |                                           |   |                    |   |           |

| **2007**                                      |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
|-----------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Current        cost                           |   | 13      |   |   | 13     |   |   | 1      |   |   | 38     |   |   | 65      |   |
| Interest cost                                 |   | 23      |   |   | 32     |   |   | 4      |   |   | 2      |   |   | 61      |   |
| Expected        return on plan assets         |   |    |   |   | (23    | )      |   |   |   |   |   |   |   | (23     | )      |
| Amortization of actuarial gains (losses)      |   | 1       |   |   | 3      |   |   |   |   |   |   |   |   | 4       |   |
| Effect of        curtailments and settlements |   | (83     | )      |   | 41     |   |   |   |   |   |   |   |   | (42     | )      |
|                                          |   | **(46** | **)**  |   | **66** |   |   | **5**  |   |   | **40** |   |   | **65**  |   |
| **2008**                                      |   |    |   |   |   |   |   |   |   |   |   |   |   |    |   |
| Current cost                                  |   |    |   |   | 19     |   |   | 1      |   |   | 48     |   |   | 70      |   |
| Interest cost                                 |   | 25      |   |   | 28     |   |   | 5      |   |   | 5      |   |   | 63      |   |
| Expected return on plan assets                |   |    |   |   | (25    | )      |   |   |   |   |   |   |   | (25     | )      |
| Amortization of actuarial gains (losses)      |   |    |   |   | 1      |   |   |   |   |   |   |   |   | 1       |   |
| Effect of curtailments and settlements        |   |    |   |   |   |   |   | (2     | )      |   |   |   |   | (2      | )      |
|                                          |   | **25**  |   |   | **25** |   |   | **4**  |   |   | **53** |   |   | **107** |   |

|   |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|

The main actuarial assumptions used for the valuation ofpost-retirement benefit obligations at year-end and for theestimate of costs expected for 2009 were as follows:

| (%)    |   | **TFR** |   | **Foreign pension plans** |   | **FISDE and other foreign medical plans** |   | **Other benefits** |
|--------|--------|---------|--------|---------------------------|--------|-------------------------------------------|--------|--------------------|
|   |   |         |   |                           |   |                                           |   |                    |

| **2007**                             |   |    |   |     |   |   |   |    |
|--------------------------------------|--------|---------|--------|----------|--------|--------|--------|---------|
| Discount        rate                 |   | 5.4     |   | 3.5-13.0 |   | 5.5    |   | 4.8-5.4 |
| Expected return rate on plan assets  |   |    |   | 4.0-13.0 |   |   |   |    |
| Rate of        compensation increase |   | 2.7-3.0 |   | 2.0-12.0 |   |   |   | 2.7-4.0 |
| Rate of price inflation              |   | 2.0     |   | 1.0-10.0 |   | 2.0    |   | 2.0     |
|                                 |   |    |   |     |   |   |   |    |
| **2008**                             |   |    |   |     |   |   |   |    |
| Discount rate                        |   | 6.0     |   | 3.5-13.0 |   | 6.0    |   | 5.2-6.0 |
| Expected return rate on plan assets  |   |    |   | 4.5-13.0 |   |   |   |    |
| Rate of compensation increase        |   | 2.7-3.0 |   | 2.4-13.0 |   |   |   | 2.7-4.0 |
| Rate of price inflation              |   | 2.5     |   | 1.3-11.0 |   | 2.5    |   | 2.5     |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

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With regards to Italian plans, demographic tables prepared byRagioneria Generale dello Stato (RG48) were used. The expectedreturn rate by plan assets has been determined by reference toquoted prices expressed in regulated markets.

Plan assets consisted of the following:

| (%)    |   | **Plan assets** |   | **Expected return** |
|--------|--------|-----------------|--------|---------------------|
|   |   |                 |   |                     |

| Securities  |   | 6.9       |   | 6.6-8.9  |   |
|-------------|--------|-----------|--------|----------|--------|
| Bonds       |   | 20.4      |   | 2.8-10.0 |   |
| Real estate |   | 1.8       |   | 5.4-15.0 |   |
| Other       |   | 70.9      |   | 2.0-13.0 |   |
| **Total**   |   | **100.0** |   |     |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The effective return on plan assets amounted to a cost of euro77 million (a profit of euro 11 million at December 31, 2007).

With reference to healthcare plans, the effects deriving froma 1% change of the actuarial assumptions of medical costs were asfollows: 

| (euro million) |   | **1% Increase** |   | **1% Decrease** |
|----------------|--------|-----------------|--------|-----------------|
|           |   |                 |   |                 |

| Impact on the current costs and interest costs |   | 1  |   | (1 | ) |
|------------------------------------------------|--------|----|--------|----|---|
| Impact on        net benefit obligation        |   | 10 |   | (9 | ) |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The amount expected to be accrued to defined benefit plans for2009 is euro 32 million.

The analysis of changes in the actuarial valuation of the netliability with respect to prior year deriving from thenon-correspondence of actuarial assumptions with actual valuesrecorded at year-end was as follows:

| (euro        million) |   | **TFR** |   | **Foreign pension plans** |   | **FISDE and other foreign medical plans** |   | **Other benefits** |
|-----------------------|--------|---------|--------|---------------------------|--------|-------------------------------------------|--------|--------------------|
|                  |   |         |   |                           |   |                                           |   |                    |

| **2007**                                |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Impact on        net benefit obligation |   | (8     | )      |   | 6      |   |   |   |   |   |   |   |
| Impact on plan assets                   |   |   |   |   | 3      |   |   |   |   |   |   |   |
| **2008**                                |   |   |   |   |   |   |   |   |   |   |   |   |
| Impact on net benefit obligation        |   | 7      |   |   | 15     |   |   | 3      |   |   | 1      |   |
| Impact on plan assets                   |   |   |   |   | (62    | )      |   |   |   |   |   |   |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

**24 Deferred tax liabilities**Deferred tax liabilities were recognized net of offsettabledeferred tax assets for euro 3,468 million (euro 3,526 million atDecember 31, 2007).

| (euro        million) |   | **Value at         Dec. 31, 2007** |   | **Additions** |   | **Deductions** |   | ****Changes in the scope of consolidation**** |   | **Currency translation differences** |   | **Other changes** |   | **Value at         Dec. 31, 2008** |
|-----------------------|--------|------------------------------------|--------|---------------|--------|----------------|--------|-----------------------------------------------|--------|--------------------------------------|--------|-------------------|--------|------------------------------------|
|                  |   |                                    |   |               |   |                |   |                                               |   |                                      |   |                   |   |                                    |

|   | **5,471** |   | 952 |   | (2,335 | ) |   | 1,684 |   | (38 | ) |   | 8 |   | **5,742** |
|--------|-----------|--------|-----|--------|--------|---|--------|-------|--------|-----|---|--------|---|--------|-----------|

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

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Deferred tax liabilities and deferred tax assets consisted ofthe following:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Deferred tax liabilities                            |   | 8,997     |   |   | 9,210     |   |
|-----------------------------------------------------|--------|-----------|--------|--------|-----------|--------|
| Deferred        tax assets available for offset     |   | (3,526    | )      |   | (3,468    | )      |
|                                                |   | **5,471** |   |   | **5,742** |   |
| Deferred        tax assets not available for offset |   | (1,915    | )      |   | (2,912    | )      |
|                                                |   | **3,556** |   |   | **2,830** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The most significant temporary differences giving rise to netdeferred tax liabilities were as follows:

| (euro        million) |   | **Value at         Dec. 31, 2007** |   | **Additions** |   | **Deductions** |   | **Currency translation differences** |   | **Other changes** |   | **Value at         Dec. 31, 2008** |
|-----------------------|--------|------------------------------------|--------|---------------|--------|----------------|--------|--------------------------------------|--------|-------------------|--------|------------------------------------|
|                  |   |                                    |   |               |   |                |   |                                      |   |                   |   |                                    |

| Deferred tax liabilities:                                                             |   |       |   |   |       |   |   |       |   |   |    |   |   |      |   |   |       |   |
|---------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|-----------|--------|--------|------------|--------|
| -        accelerated tax depreciation                                                 |   | 6,257      |   |   | 212        |   |   | (895       | )      |   | (60     | )      |   | (148      | )      |   | 5,366      |   |
| - site restoration and abandonment (tangible        assets)                           |   | 539        |   |   | 191        |   |   | (30        | )      |   | (32     | )      |   | (14       | )      |   | 654        |   |
| -        capitalized interest expense                                                 |   | 177        |   |   | 10         |   |   | (15        | )      |   |    |   |   | 1         |   |   | 173        |   |
| - application of the weighted average cost        method in evaluation of inventories |   | 731        |   |   | 335        |   |   | (1,070     | )      |   |    |   |   | 83        |   |   | 79         |   |
| - other                                                                               |   | 1,293      |   |   | 204        |   |   | (325       | )      |   | 54      |   |   | 1,712     |   |   | 2,938      |   |
|                                                                                  |   | **8,997**  |   |   | **952**    |   |   | **(2,335** | **)**  |   | **(38** | **)**  |   | **1,634** |   |   | **9,210**  |   |
| Deferred        tax assets:                                                           |   |       |   |   |       |   |   |       |   |   |    |   |   |      |   |   |       |   |
| - site restoration and abandonment (provisions        for contingencies)              |   | (1,363     | )      |   | (244       | )      |   | 17         |   |   | 45      |   |   | (27       | )      |   | (1,572     | )      |
| - accruals        for impairment losses and provisions for contingencies              |   | (913       | )      |   | (701       | )      |   | 235        |   |   | 3       |   |   | (21       | )      |   | (1,397     | )      |
| - depreciation and amortization                                                       |   | (622       | )      |   | (278       | )      |   | 48         |   |   | (42     | )      |   | (16       | )      |   | (910       | )      |
| - assets        revaluation as per Laws No. 342/2000 and No. 448/2001                 |   | (788       | )      |   |       |   |   | 60         |   |   |    |   |   | (7        | )      |   | (735       | )      |
| - carry-forward tax losses                                                            |   | (79        | )      |   | (10        | )      |   | 37         |   |   | 1       |   |   | (6        | )      |   | (57        | )      |
| - other                                                                               |   | (1,676     | )      |   | (545       | )      |   | 370        |   |   | 36      |   |   | 106       |   |   | (1,709     | )      |
|                                                                                  |   | **(5,441** | **)**  |   | **(1,778** | **)**  |   | **767**    |   |   | **43**  |   |   | **29**    |   |   | **(6,380** | **)**  |
| **Net        deferred tax liabilities**                                               |   | **3,556**  |   |   | **(826**   | **)**  |   | **(1,568** | **)**  |   | **5**   |   |   | **1,663** |   |   | **2,830**  |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Deferred tax assets are recognized for deductible temporarydifferences to the extent that is probable that sufficienttaxable profit will be available against which part or all of thedeductible temporary differences can be utilized. When futuretaxable profit is no longer deemed to be sufficient to absorb allexisting deferred tax assets, any surplus is written off.

Other changes of euro 1,663 million included: (i) changes inthe consolidation area for euro 1,456 million following of theacquisition made by the Exploration & Production segment ofBurren Energy Plc (euro 733 million), of First Calgary PetroleumsLtd (euro 108 million), of Eni Hewett Ltd (euro 91 million) andof Hindustan Oil Exploration Co Ltd (euro 31 million), theacquisition made by the Gas & Power segment of Distrigas NV(euro 504 million) and the disposal done by the Refining &Marketing segment of Agip España SA (euro 11 million); and (ii)the recognition of the deferred tax effect against equity on thefair value evaluation of derivatives designated as cash flowhedge for euro 76 million. Further information on cash flowhedging derivatives is given in Note 7 - Other current assets, inNote 15 - Other non-current receivables and in Note 25 - Othernon-current liabilities.

Italian taxation law allows the carry-forward of tax lossesover the five subsequent years. Losses suffered in the firstthree years of the company’s life can however be, for themost part, carried forward indefinitely. The tax rate applied bythe Italian subsidiaries to determine the portion ofcarry-forwards tax losses to be utilized equaled 33%; 33.73% forforeign entities.

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Carry-forward tax losses of euro 1,024 million can be used inthe following periods:

| (euro million) |   | **Italian        subsidiaries** |   | **Foreign        subsidiaries** |
|----------------|--------|---------------------------------|--------|---------------------------------|
|           |   |                                 |   |                                 |

| 2009               |   | 41     |   | 7       |   |
|--------------------|--------|--------|--------|---------|--------|
| 2010               |   |   |   | 12      |   |
| 2011               |   |   |   | 1       |   |
| 2012               |   |   |   |    |   |
| 2013               |   | 6      |   | 3       |   |
| Beyond        2013 |   | 3      |   | 14      |   |
| Without limit      |   | 38     |   | 899     |   |
|               |   | **88** |   | **936** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Carry-forward tax losses of euro 171 million wereexpected to be offset against future taxable profit and were inrespect of Italian subsidiaries for euro 88 million and offoreign subsidiaries for euro 83 million. Deferred tax assetsrecognized on these losses amounted to euro 29 million and euro28 million, respectively. 

**25 Other non-current liabilities**Other non-current liabilities were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Fair value of cash flow hedge derivatives |   | 1,340     |   | 499       |   |
|-------------------------------------------|--------|-----------|--------|-----------|--------|
| Current        income tax liabilities     |   | 215       |   | 254       |   |
| Payables related to capital expenditures  |   | 22        |   |      |   |
| Other        payables                     |   | 295       |   | 55        |   |
| Other liabilities                         |   | 159       |   | 1,730     |   |
|                                      |   | **2,031** |   | **2,538** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

The fair value of derivative contracts was determined by usingmarket quotations reported by major market data providers, or, ifno market information was available, on the basis of generallyaccepted methods for financial valuations.

The fair value of cash flow hedging derivatives amounted toeuro 499 million (euro 1,340 million at December 31, 2007) andrelated to the Exploration & Production segment for euro 264million (euro 1,340 million at December 31, 2007) and toDistrigas NV (euro 235 million).

Further information on cash flow hedging derivatives is givenin Note 7 - Other current assets. The fair value related to thecontracts expiring in 2009 is given in Note 7 - Other currentassets, in Note 15 - Other non-current receivables and in Note 25- Other non-current liabilities. The effects of the fair valuevaluation of cash flow hedging derivatives are given in Note 27 -Shareholders’ equity and in Note 32 - Finance income(expense).

The nominal value of these derivatives referred to purchaseand sale commitments for euro 1,878 million and euro 1,832million, respectively (euro 2,804 million and euro 3,404 millionat December 31, 2007).

Information on the hedged risks and the hedging policies isshown in Note 29 - Guarantees, commitments and risks.

The group’s liability for current income taxes of euro254 million (euro 215 million at December 31, 2007) was due asspecial tax (with a rate lower than the statutory tax rate),relating to the option to increase the deductible tax bases ofcertain tangible and other assets to their carrying amounts aspermitted by the 2008 Budget Law.

Other liabilities of euro 1,730 million (euro 159 million atDecember 31, 2007) included advances received by Suez followingthe long-term supply of natural gas and electricity of euro 1,552million.

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**26 Assets classified asheld for sale and liabilities directly associated with the assetsclassified as held for sale**Non-current assets held for sale and directly associatedliabilities related to the disposal of Fertlizantes Nitrogenadosde Oriente, a company specialized in the production offertilizers.

**27 Shareholders’ equity****Minority interest**Minority interest and the attributable profit withreference to certain consolidated subsidiaries related to:

| (euro million) |   | **Net profit** |   | **Shareholders’        equity** |
|----------------|--------|----------------|--------|--------------------------------------|
|           |   |                |   |                                      |

|   |   | 2007 |   | 2008 |   | Dec. 31, 2007 |   | Dec. 31, 2008 |
|--------|--------|------|--------|------|--------|---------------|--------|---------------|
|   |   |      |   |      |   |               |   |               |

| Saipem SpA                                                                                                |   | 514     |   | 407     |   |   | 1,299     |   | 1,560     |
|-----------------------------------------------------------------------------------------------------------|--------|---------|--------|---------|--------|--------|-----------|--------|-----------|
| Distrigas        NV                                                                                       |   |    |   | 74      |   |   |      |   | 1,162     |
| Snam Rete Gas SpA                                                                                         |   | 268     |   | 254     |   |   | 865       |   | 948       |
| Hindustan        Oil Exploration Co Ltd                                                                   |   |    |   | (1      | )      |   |      |   | 128       |
| Tigàz Tiszàntùli Gàzszolgàltatò        Részvénytàrsasàg |   | 1       |   | (11     | )      |   | 79        |   | 65        |
| Others                                                                                                    |   | 15      |   | 10      |   |   | 196       |   | 211       |
|                                                                                                      |   | **798** |   | **733** |   |   | **2,439** |   | **4,074** |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

**Eni shareholders’ equity**Eni’s net equity at December 31 was as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Share capital                                              |   | 4,005      |   |   | 4,005      |   |
|------------------------------------------------------------|--------|------------|--------|--------|------------|--------|
| Legal        reserve                                       |   | 959        |   |   | 959        |   |
| Reserve for treasury shares                                |   | 7,207      |   |   | 7,187      |   |
| Cumulative        foreign currency translation differences |   | (2,233     | )      |   | (969       | )      |
| Other reserves                                             |   | (914       | )      |   | (1,140     | )      |
| Retained        earnings                                   |   | 29,591     |   |   | 34,685     |   |
| Treasury shares                                            |   | (5,999     | )      |   | (6,757     | )      |
| Interim        dividend                                    |   | (2,199     | )      |   | (2,359     | )      |
| Net profit for the period                                  |   | 10,011     |   |   | 8,825      |   |
|                                                       |   | **40,428** |   |   | **44,436** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

**Share capital**At December 31, 2008 the parent company’s issued sharecapital consisted of 4,005,358,876 shares (nominal value euro 1each) fully paid-up (the same amount at December 31, 2007).

On April 29, 2008 Eni’s Shareholders’ Meetingdeclared a dividend distribution of euro 0.70 per share, with theexclusion of treasury shares held at the ex-dividend date, infull settlement of the 2007 dividend of euro 1.30 per share, ofwhich euro 0.60 per share paid as interim dividend. The balancewas paid on May 22, 2008 to shareholders on the register on May19, 2008.

**Legal reserve**This reserve represents earnings restricted from the paymentof dividends pursuant to Article 2430 of the Italian Civil Code.The legal reserve has reached the maximum amount required by theItalian Law.

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**Reserve for treasury shares**The reserve for treasury shares represents the reserverestricted to the purchase of own shares in accordance with thedecisions of Eni’s Shareholders’ Meetings. The amountof euro 7,187 million (euro 7,207 million at December 31, 2007)included treasury shares purchased. The decrease of euro 20million primarily concerned the sale and grant of treasury sharesto Group managers following stock option and stock grantsincentive schemes.

**Cumulative foreign currency translationdifferences**The cumulative foreign currency translation differences arosefrom the translation of financial statements denominated incurrencies other than euro.

**Other reserves**Other reserves of negative amount were euro 1,140 million (atDecember 31, 2007 other reserves of negative amount were euro 914million) and included:

| • |   | a reserve of euro 247        million constituted following the sale by Eni SpA of        Snamprogetti SpA to Saipem Projects SpA (now Saipem SpA)        (same amount at December 31, 2007);                                                                                                                                                                                                                                                                                                       |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| • |   | a reserve of euro 194        million (euro 181 million at December 31, 2007) deriving        from Eni SpA’s equity;                                                                                                                                                                                                                                                                                                                                                                           |
| • |   | a reserve of euro 86 million        (at December 31, 2007 a negative for euro 1,342 million)        including the related tax, for the valuation at fair        value of available-for-sale securities and cash flow        hedge derivatives. Further information is given in Note 2        - Other financial assets held for trading or available        for sale, Note 7 - Other current assets, Note 20 - Other        current liabilities and Note 25 - Other non-current        liabilities; |
| • |   | a negative reserve of euro        1,495 million related to the put option granted to        Publigaz (the Distrigas minority shareholder) to divest        its 31.25% stake in Distrigas NV valued at the same        per-share price of the ongoing mandatory tender offer to        minorities.                                                                                                                                                                                                  |

The valuation at fair value of securities available for saleand cash flow hedge derivatives, net of the related tax effect,consisted of the following:

|   |   | **Available-for-sale securities** |   | **Cash flow hedge derivatives** |   | **Total** |
|--------|--------|-----------------------------------|--------|---------------------------------|--------|-----------|
|   |   |                                   |   |                                 |   |           |

| (euro        million) |   | Gross reserve |   | Deferred tax liabilities |   | Net reserve |   | Gross reserve |   | Deferred tax liabilities |   | Net reserve |   | Gross reserve |   | Deferred tax liabilities |   | Net reserve |
|-----------------------|--------|---------------|--------|--------------------------|--------|-------------|--------|---------------|--------|--------------------------|--------|-------------|--------|---------------|--------|--------------------------|--------|-------------|
|                  |   |               |   |                          |   |             |   |               |   |                          |   |             |   |               |   |                          |   |             |

| **Reserve as of December 31, 2006**                     |   | **8**  |   |   | **(2** | **)**  |   | **6**  |   |   | **1**      |   |   |    |   |   | **1**      |   |   | **9**      |   |   | **(2**  | **)**  |   | **7**      |   |
|---------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|---------|--------|--------|------------|--------|--------|------------|--------|--------|---------|--------|--------|------------|--------|
| Changes of        the year 2007                         |   |   |   |   |   |   |   |   |   |   | (2,237     | )      |   | 867     |   |   | (1,370     | )      |   | (2,237     | )      |   | 867     |   |   | (1,370     | )      |
| Foreign currency translation differences                |   |   |   |   |   |   |   |   |   |   | 51         |   |   | (26     | )      |   | 25         |   |   | 51         |   |   | (26     | )      |   | 25         |   |
| Amount        recognized in the profit and loss account |   | (6     | )      |   | 2      |   |   | (4     | )      |   |       |   |   |    |   |   |       |   |   | (6         | )      |   | 2       |   |   | (4         | )      |
| **Reserve as of December 31, 2007**                     |   | **2**  |   |   |   |   |   | **2**  |   |   | **(2,185** | **)**  |   | **841** |   |   | **(1,344** | **)**  |   | **(2,183** | **)**  |   | **841** |   |   | **(1,342** | **)**  |
| Changes of        the year 2008                         |   | 3      |   |   | (1     | )      |   | 2      |   |   | 964        |   |   | (364    | )      |   | 600        |   |   | 967        |   |   | (365    | )      |   | 602        |   |
| Changes in the scope of consolidation                   |   |   |   |   |   |   |   |   |   |   | (68        | )      |   | 23      |   |   | (45        | )      |   | (68        | )      |   | 23      |   |   | (45        | )      |
| Foreign        currency translation differences         |   |   |   |   |   |   |   |   |   |   | 48         |   |   | (23     | )      |   | 25         |   |   | 48         |   |   | (23     | )      |   | 25         |   |
| Amount recognized in the profit and loss account        |   |   |   |   |   |   |   |   |   |   | 1,005      |   |   | (402    | )      |   | 603        |   |   | 1,005      |   |   | (402    | )      |   | 603        |   |
| **Reserve        as of December 31, 2008**              |   | **5**  |   |   | **(1** | **)**  |   | **4**  |   |   | **(236**   | **)**  |   | **75**  |   |   | **(161**   | **)**  |   | **(231**   | **)**  |   | **74**  |   |   | **(157**   | **)**  |
| *of which: Eni Group*                                   |   | *5*    |   |   | *(1*   | *)*    |   | *4*    |   |   | *(128*     | *)*    |   | *38*    |   |   | *(90*      | *)*    |   | *(123*     | *)*    |   | *37*    |   |   | *(86*      | *)*    |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

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The ineffective portion of the change in fairvalue of cash flow hedging derivatives (time value component)entered into by the Exploration & Production segmentconsisted of the following:

| (euro        million) |   | **Value at****Dec. 31, 2007** |   | **Changes recognized in        profit and loss account** |   | **Currency translation        differences** |   | **Value at****Dec. 31, 2008** |
|-----------------------|--------|-------------------------------|--------|----------------------------------------------------------|--------|---------------------------------------------|--------|-------------------------------|
|                  |   |                               |   |                                                          |   |                                             |   |                               |

|   |   | **(56** | **)** |   | 7 |   | 4 |   | **(45** | **)** |
|--------|--------|---------|-------|--------|---|--------|---|--------|---------|-------|

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

**Treasury shares purchased**A total of 382,954,240 ordinary shares (348,525,005 atDecember 31, 2007) with nominal value of euro 1 each, were heldin treasury, for a total cost of euro 6,757 million (euro 5,999million at December 31, 2007). 23,557,425 treasury shares(35,423,925 at December 31, 2007) at a cost of euro 505 million(euro 768 million at December 31, 2007) were available for2002-2005 and 2006-2008 stock option plans.

The decrease of 11,866,500 shares consisted of the following:

|   |   | **Stock option** |   | **Stock grant** |   | **Total** |
|--------|--------|------------------|--------|-----------------|--------|-----------|
|   |   |                  |   |                 |   |           |

| **Number of shares at December 31, 2007**                      |   | **34,521,125**  |   |   | **902,800**  |   |   | **35,423,925**  |   |
|----------------------------------------------------------------|--------|-----------------|--------|--------|--------------|--------|--------|-----------------|--------|
| Rights not        assigned for the 2006-2008 stock option plan |   | (9,406,500      | )      |   |         |   |   | (9,406,500      | )      |
| Rights exercised                                               |   | (582,100        | )      |   | (893,400     | )      |   | (1,475,500      | )      |
| Rights        cancelled                                        |   | (975,100        | )      |   | (9,400       | )      |   | (984,500        | )      |
|                                                           |   | **(10,963,700** | **)**  |   | **(902,800** | **)**  |   | **(11,866,500** | **)**  |
| **Number        of shares at December 31, 2008**               |   | **23,557,425**  |   |   |         |   |   | **23,557,425**  |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

At December 31, 2008, options outstanding were 23,557,425shares. Options refer to the 2002 stock plan for 97,000 shareswith an exercise price of euro 15.216 per share, to the 2003stock plan for 231,900 shares with an exercise price of euro13.743 per share, to the 2004 stock plan for 671,600 shares withan exercise price of euro 16.576 per share, to the 2005 stockplan for 3,756,000 shares with an exercise price of euro 22.512per share, to the 2006 stock plan for 5,954,250 shares with anweighted average exercise price of euro 23.119 per share, to the2007 stock plan for 5,492,375 with an weighted average exerciseprice of euro 27.451 per share and to the 2008 stock plan for7,354,300 with an weighted average exercise price of euro 22.540per share.

Information about commitments related to stock grant and stockoption plans is included in Note 31 - Operating expenses. 

**Interim dividend**Interim dividend for the year 2008 amounted of euro 2,359 millioncorresponding to euro 0.65 per share, as decided by the Board ofDirectors on September 11, 2008 in accordance with Article2433-bis, paragraph 5 of the Italian Civil Code; the dividend waspaid on September 25, 2008. 

**Distributable reserves**At December 31, 2008 Eni shareholders’ equity includeddistributable reserves for euro 39,000 million.

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**Reconciliation of net profit and shareholders’equity of the parent company Eni SpA to consolidated net profitand shareholders’ equity**

|    |    | **Net profit** |    | **Shareholders’        equity** |
|--------------|--------------|----------------|--------------|--------------------------------------|
|    |    |                |    |                                      |

| (euro        million) |    | 2007 |    | 2008 |    | Dec. 31, 2007 |    | Dec. 31, 2008 |
|-----------------------|--------------|------|--------------|------|--------------|---------------|--------------|---------------|
|             |    |      |    |      |    |               |    |               |

| **As recorded in Eni SpA’s Financial        Statements**                                                                                                                                                         |   | **6,600**  |   |   | **6,745** |   |   | **28,926** |   |   | **30,049** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|
| Difference        between the equity value of individual accounts of        consolidated subsidiaries with respect to the        corresponding carrying amount in the statutory accounts        of the parent company |   | 4,122      |   |   | 4,140     |   |   | 16,320     |   |   | 18,999     |   |
| Consolidation adjustments:                                                                                                                                                                                            |   |       |   |   |      |   |   |       |   |   |       |   |
| -        difference between cost and underlying value of equity                                                                                                                                                       |   | (1         | )      |   | (330      | )      |   | 1,245      |   |   | 5,161      |   |
| - elimination of tax adjustments and compliance        with accounting policies                                                                                                                                       |   | 649        |   |   | (1,373    | )      |   | (1,235     | )      |   | (2,852     | )      |
| -        elimination of unrealized intercompany profits                                                                                                                                                               |   | (435       | )      |   | 216       |   |   | (3,383     | )      |   | (3,127     | )      |
| - deferred taxes                                                                                                                                                                                                      |   | (97        | )      |   | 159       |   |   | 711        |   |   | (15        | )      |
| - other        adjustments                                                                                                                                                                                            |   | (29        | )      |   | 1         |   |   | 283        |   |   | 295        |   |
|                                                                                                                                                                                                                  |   | **10,809** |   |   | **9,558** |   |   | **42,867** |   |   | **48,510** |   |
| Minority        interest                                                                                                                                                                                              |   | (798       | )      |   | (733      | )      |   | (2,439     | )      |   | (4,074     | )      |
| **As recorded in Consolidated Financial        Statements**                                                                                                                                                           |   | **10,011** |   |   | **8,825** |   |   | **40,428** |   |   | **44,436** |   |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

 

**28 Other information****Acquisitions***Burren Energy Plc*On January 11, 2008, following a non-hostile takeover bymeans of a cash offer, Eni acquired control over the British oilcompany Burren Energy Plc (Burren). Burren held producing assetsin Turkmenistan and Congo, and exploratory licenses in Egypt,Yemen and India. Total consideration for this transaction of euro2,358 million, of which euro 14 million related to additionalcosts directly attributable to the combination, has beenallocated to assets and liabilities on a definitive basis.

*Hindustan Oil Exploration Co Ltd (HOEC)*On August 5, 2008, following the execution of a mandatorytender offer on a 20% stake of the HOEC share capital, Eniacquired control over the Indian company Hindustan OilExploration Co Ltd (HOEC). The mandatory offer was associatedwith Eni’s acquisition of a 27.18% of HOEC as part of theBurren deal. Total consideration for this transaction of euro 107million, with the exclusion of the minority interest, has beenallocated to assets and liabilities on a preliminary basisbecause of the significant amount of time required for a moreprecise valuation.

*Distrigas NV*On October 30, 2008, following the acquisition of a 57.243%majority stake from the French company Suez-Tractebel Eniacquired control over the Belgian company Distrigas NV. OnDecember 30, 2008, Eni was granted authorization from the Belgianmarket authorities to execute a mandatory tender offer to theminorities of Distrigas. The deadline of the offer was March 19,2009. Total consideration for this transaction of euro 2,751million, of which euro 12 million related to additional costsdirectly attributable to the acquisition, with the exclusion ofthe minority interest, has been allocated to assets andliabilities on a preliminary basis because of the amount of timerequired for a more precise valuation.

*First Calgary Petroleums Ltd*On November 21, 2008, following the acquisition of all of thecommon shares Eni gained control of First Calgary Petroleums Ltd,a Canadian oil and gas company with exploration and developmentactivities in Algeria. Total consideration for this transactionof euro 605 million, of which euro 5 million related toadditional costs directly attributable to the acquisition, hasbeen allocated to assets and liabilities on a preliminary basisbecause of the amount of time required for a more precisevaluation.

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*Eni Hewett Ltd*On November 28, 2008, following the finalization of anagreement with the British company Tullow Oil Ltd Eni acquired a52% stake and the operatorship of fields in the Hewett Unit andrelevant facilities in the North Sea, with the aim to upgradecertain depleted fields in the area so as to achieve a gasstorage facility. Total consideration for this transaction ofeuro 224 million has been allocated to assets and liabilities ona preliminary basis because of the amount of time required for amore precise valuation.

| (euro        million) |   | **Burren Energy Plc** |   | **Hindustan Oil        Exploration Co Ltd** |   | **Distrigas NV** |   | **First Calgary Petroleums        Ltd** |   | **Eni Hewett Ltd** |
|-----------------------|--------|-----------------------|--------|---------------------------------------------|--------|------------------|--------|-----------------------------------------|--------|--------------------|
|                  |   |                       |   |                                             |   |                  |   |                                         |   |                    |

|   |   | Pre- acquisition |   | Post- acquisition |   | Pre- acquisition |   | Post- acquisition |   | Pre- acquisition |   | Post- acquisition |   | Pre- acquisition |   | Post- acquisition |   | Pre- acquisition |   | Post- acquisition |
|--------|--------|------------------|--------|-------------------|--------|------------------|--------|-------------------|--------|------------------|--------|-------------------|--------|------------------|--------|-------------------|--------|------------------|--------|-------------------|
|   |   |                  |   |                   |   |                  |   |                   |   |                  |   |                   |   |                  |   |                   |   |                  |   |                   |

| Current assets                            |   | 187     |   | 187       |   | 115     |   | 115     |   | 3,375     |   | 3,375     |   | 148     |   | 148     |   | 56     |   | 19      |
|-------------------------------------------|--------|---------|--------|-----------|--------|---------|--------|---------|--------|-----------|--------|-----------|--------|---------|--------|---------|--------|--------|--------|---------|
| Property,        plant and equipment      |   | 457     |   | 2,543     |   | 79      |   | 199     |   | 30        |   | 30        |   | 643     |   | 757     |   | 29     |   | 118     |
| Intangible assets                         |   | 47      |   | 326       |   | 8       |   |    |   | 1         |   | 1,395     |   |    |   |    |   |   |   | 208     |
| Goodwill                                  |   |    |   | 89        |   |    |   |    |   |      |   | 1,245     |   |    |   | 88      |   |   |   | 39      |
| Investments                               |   | 56      |   | 53        |   | 1       |   | 1       |   | 112       |   | 112       |   |    |   |    |   |   |   |    |
| Other        non-current assets           |   | 17      |   | 17        |   |    |   |    |   | 202       |   | 203       |   |    |   |    |   | 9      |   |    |
| **Assets acquired**                       |   | **764** |   | **3,215** |   | **203** |   | **315** |   | **3,720** |   | **6,360** |   | **791** |   | **993** |   | **94** |   | **384** |
| Current        liabilities                |   | 62      |   | 100       |   | 37      |   | 37      |   | 1,796     |   | 1,796     |   | 45      |   | 45      |   | 17     |   | 17      |
| Net deferred tax liabilities              |   | 36      |   | 733       |   | (5      | )      | 31      |   | 30        |   | 504       |   | 15      |   | 108     |   |   |   | 91      |
| Provisions        for contingencies       |   | 14      |   | 24        |   | 4       |   | 3       |   | 80        |   | 80        |   | 3       |   | 6       |   | 44     |   | 52      |
| Other non-current liabilities             |   |    |   |      |   | 17      |   | 17      |   | 88        |   | 88        |   | 229     |   | 229     |   |   |   |    |
| **Liabilities        acquired**           |   | **112** |   | **857**   |   | **53**  |   | **88**  |   | **1,994** |   | **2,468** |   | **292** |   | **388** |   | **61** |   | **160** |
| Minority interest                         |   |    |   |      |   | 79      |   | 120     |   | 748       |   | 1,141     |   |    |   |    |   |   |   |    |
| **Eni’s        shareholders equity** |   | **652** |   | **2,358** |   | **71**  |   | **107** |   | **978**   |   | **2,751** |   | **499** |   | **605** |   | **33** |   | **224** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

 

**29 Guarantees, commitmentsand risks****Guarantees**Guarantees were as follows:

|   |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |

| (euro million) |   | Unsecured guarantees |   | Other        guarantees |   | Total |   | Unsecured guarantees |   | Other        guarantees |   | Total |
|----------------|--------|----------------------|--------|-------------------------|--------|-------|--------|----------------------|--------|-------------------------|--------|-------|
|           |   |                      |   |                         |   |       |   |                      |   |                         |   |       |

| Consolidated subsidiaries                        |   |      |   | 6,388     |   | 6,388      |   |      |   | 13,139     |   | 13,139     |
|--------------------------------------------------|--------|-----------|--------|-----------|--------|------------|--------|-----------|--------|------------|--------|------------|
| Unconsolidated        entities controlled by Eni |   |      |   | 150       |   | 150        |   |      |   | 151        |   | 151        |
| Joint ventures and associates                    |   | 5,896     |   | 1,099     |   | 6,995      |   | 6,027     |   | 1,075      |   | 7,102      |
| Others                                           |   | 12        |   | 279       |   | 291        |   | 8         |   | 245        |   | 253        |
|                                             |   | **5,908** |   | **7,916** |   | **13,824** |   | **6,035** |   | **14,610** |   | **20,645** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Other guarantees issued on behalf of consolidatedsubsidiaries of euro 13,139 million (euro 6,388 million atDecember 31, 2007) primarily consisted of: (i) guarantees givento third parties relating to bid bonds and performance bonds foreuro 7,004 million (euro 3,244 million at December 31, 2007), ofwhich euro 5,965 million related to the Engineering &Construction segment (euro 2,351 million at December 31, 2007);(ii) guarantees issued on behalf of Eni Gas & Power BelgiumSA for euro 2,739 million related to the Share Purchase Agreementwith Suez-Tractebel SA for the acquisition of a 57.24% majoritystake in Distrigas NV; (iii) VAT recoverable from tax authoritiesfor euro 1,248 million (euro 1,286 million at December 31, 2007);and (iv) insurance risk for euro 257 million reinsured by Eni(euro 259 million at December 31, 2007). At December 31, 2007 theunderlying commitment covered by such guarantees was euro 10,202million (euro 6,050 million at December 31, 2007).

Other guarantees issued on behalf ofunconsolidated subsidiaries of euro 151 million (euro 150 millionat December 31, 2007) consisted of letters of patronage and otherguarantees issued to commissioning entities relating to bid bondsand performance bonds for euro 146 million (euro 144 million atDecember 31, 2007). At December 31, 2008, the underlyingcommitment covered by such guarantees was euro 79 million (euro19 million at December 31, 2007).

Unsecured guarantees and other guarantees issuedon behalf of joint ventures and associates of euro 7,102 million(euro 6,995 million at December 31, 2007) primarily concerned:(i) an unsecured guarantee of euro 6,001 million (euro 5,870million at December 31, 2007) given by Eni SpA to Treno AltaVelocità - TAV - SpA for the proper and timely completion of aproject relating to the Milan-Bologna train link by CEPAV(Consorzio Eni per 

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l’Alta Velocità) Uno; consortium members,excluding unconsolidated entities controlled by Eni, gave Eniliability of surety letters and bank guarantees amounting to 10%of their respective portion of the work; (ii) unsecuredguarantees, letters of patronage and other guarantees given tobanks in relation to loans and lines of credit received for euro871 million (euro 824 million at December 31, 2007), of whicheuro 716 million related to a contract released by Snam SpA (nowmerged into Eni SpA) on behalf of Blue Stream Pipeline Co BV (Eni50%) to a consortium of international financial institutions(euro 677 million at December 31, 2007); and (iii) unsecuredguarantees and other guarantees given to commissioning entitiesrelating to bid bonds and performance bonds for euro 107 million(euro 119 million at December 31, 2007). At December 31, 2008,the underlying commitment covered by such guarantees was euro 983million (euro 1,562 million at December 31, 2007).

Unsecured and other guarantees given on behalf ofthird parties of euro 253 million (euro 291 million at December31, 2007) consisted primarily of: (i) guarantees issued on behalfof Gulf LNG Energy and Gulf LNG Pipeline and on behalf of AngolaLNG Supply Service Llc (Eni 13.6%) as security against paymentcommitments of fees in connection with the re-gasificationactivity for euro 216 million (euro 204 million at December 31,2007); and (ii) guarantees issued by Eni SpA to banks and otherfinancial institutions in relation to loans and lines of creditfor euro 19 million on behalf of minor investments or companiessold (euro 20 million at December 31, 2007).

At December 31, 2008 the underlying commitmentcovered by such guarantees was euro 232 million (euro 281 millionat December 31, 2007). 

**Commitments and contingencies**Commitments and contingencies were as follows:

| (euro million) |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|----------------|--------|-------------------|--------|-------------------|
|           |   |                   |   |                   |

| Commitments |   | 200       |   | 205       |   |
|-------------|--------|-----------|--------|-----------|--------|
| Risks       |   | 1,520     |   | 1,660     |   |
|        |   | **1,720** |   | **1,865** |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

Other commitments of euro 205 million (euro 200 million atDecember 31, 2007) were essentially related to a memorandum ofintent signed with the Basilicata Region, whereby Eni has agreedto invest euro 180 million in the future, also on account ofShell Italia E&P SpA, in connection with Eni’sdevelopment plan of oil fields in Val d’Agri (euro 177million at December 31, 2007).

Risks of euro 1,660 million (euro 1,520 million at December31, 2007) primarily concerned potential risks associated with thevalue of assets of third parties under the custody of Eni foreuro 1,273 million (euro 1,126 million at December 31, 2007) andcontractual assurances given to acquirers of certain investmentsand businesses of Eni for euro 387 million (euro 376 million atDecember 31, 2007).

**Risk factors**FOREWORDThe main risks that the Company is facing and actively monitoringand managing are the following: (i) the market risk deriving fromexposure to fluctuations in interest rates, foreign currencyexchange rates and commodity prices; (ii) the credit riskderiving from the possible default of a counterparty; (iii) theliquidity risk deriving from the risk that suitable sources offunding for the Group’s operations may not be available;(iv) the country risk in the upstream business; (v) theoperational risk; (vi) the possible evolution of the Italian gasmarket; and (vii) the specific risks deriving from explorationand production activities.

Financial risks are managed in respect of guidelines definedby the parent company, targeting to align and coordinate Groupcompanies’ policies on financial risks.

*Market risk*Market risk is the possibility that changes in currency exchangerates, interest rates or commodity prices will adversely affectthe value of the Group’s financial assets, liabilities orexpected future cash flows. The Company actively manages marketrisk in accordance with a set of policies and guidelines thatprovide a centralized model of conducting finance, treasury andrisk management operations based on three separate entities: theparent company’s (Eni SpA) finance department, EniCoordination Center and Banque Eni which is subject to certainbank regulatory 

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restrictions preventing the Group’s exposure toconcentrations of credit risk. Additionally, in 2007, Eni Trading& Shipping was established and has the mandate to manage andmonitor solely commodity derivative contracts. In particular EniSpA and Eni Coordination Center manage subsidiaries’financing requirements in and outside of Italy, respectively,covering funding requirements and using available surpluses. Alltransactions concerning currencies and derivative financialcontracts are managed by the parent company as well as theactivity of trading certificates according to the European UnionEmission Trading Scheme. The commodity risk is managed by eachbusiness unit with Eni Trading & Shipping ensuring thenegotiation of hedging derivatives. Eni uses derivative financialinstruments (derivatives) in order to minimize exposure to marketrisks related to changes in exchange rates and interest rates andto manage exposure to commodity prices fluctuations. Eni does notenter into derivative transactions on a speculative basis. Theframework defined by Eni’s policies and guidelinesprescribes that measurement and control of market risk beperformed on the basis of maximum tolerable levels of riskexposure defined in accordance with value-at-risk techniques.These techniques make a statistical assessment of the market riskon the Group’s activity, i.e., potential gain or loss infair values, due to changes in market conditions taking accountof the correlation existing among changes in fair value ofexisting instruments. Eni’s finance departments definemaximum tolerable levels of risk exposure to changes in interestrates and foreign currency exchange rates, pooling Groupcompanies risk positions. Eni’s calculation and measurementtechniques for interest rate and foreign currency exchange raterisks are in accordance with established banking standards, asestablished by the Basel Committee for bank activitiessurveillance. Tolerable levels of risk are based on aconservative approach, considering the industrial nature of thecompany. Eni’s guidelines prescribe that Eni’s Groupcompanies minimize such kinds of market risks. With regard to thecommodity risk, Eni’s policies and guidelines define rulesto manage this risk aiming at the optimization of core activitiesand the pursuing of preset targets of industrial margins. Themaximum tolerable level of risk exposure is pre-defined in termsof value at risk in connection with trading and commercialactivities, while the strategic risk exposure to commodity pricesfluctuations – i.e. the impact on the Group’s businessresults deriving from changes in commodity prices – ismonitored in terms of value-at risk, albeit not hedged in asystematic way. Accordingly, Eni evaluates the opportunity tomitigate its commodity risk exposure by entering into hedgingtransactions in view of certain acquisition deals of oil and gasreserves as part of the Group’s strategy to achieve itsgrowth targets or ordinary asset portfolio management. The Groupcontrols commodity risk with a maximum value-at-risk limitawarded to each business unit. Hedging needs from business unitsare pooled by Eni Trading & Shipping which also manages itsown risk exposure. The three different market risks, whosemanagement and control have been summarized above, are describedbelow. 

*Exchange rate risk*Exchange rate risk derives from the fact that Eni’soperations are conducted in currencies other than the euro(mainly in the U.S. dollar). Revenues and expenses denominated inforeign currencies may be significantly affected by exchangerates fluctuations due to conversion differences on singletransaction arising from the time lag existing between executionand definition of relevant contractual terms (economic risk) andconversion of foreign currency-denominated trade and financingpayables and receivables (transactional risk). Exchange ratefluctuations affect Group’s reported results and net equityas financial statements of subsidiaries denominated in currenciesother than the euro are translated from their functional currencyinto euro (translation risk). Generally, an appreciation of theU.S. dollar versus the euro has a positive impact on Eni’sresults of operations, and vice versa. Eni’s foreignexchange risk management policy is to minimize economic andtransactional exposures arising from foreign currency movements.Eni does not undertake any hedging activity for risks derivingfrom translation of foreign currency denominated profits orassets and liabilities of subsidiaries which prepare financialstatements in a currency other than the euro, except for singletransactions to be evaluated on a case-by-case basis. Effectivemanagement of exchange rate risk is performed within Eni’scentral finance departments which match opposite positions withinGroup companies, hedging the Group net exposure through the useof certain derivatives, such as currency swaps, forwards andoptions. Such derivatives are evaluated at fair value on thebasis of market prices provided by specialized sources. Changesin fair value of those derivatives are normally recognizedthrough the profit and loss account as they do not meet theformal criteria to be recognized as hedges in accordance with IAS39. The VAR techniques are based on variance/covariancesimulation models and are used to monitor the risk exposurearising from possible future changes in market values over a24-hour period within a 99% confidence level and a 20-day holdingperiod. 

*Interest rate risk*Changes in interest rates affect the market value of financialassets and liabilities of the company and the level of financecharges. Eni’s interest rate risk management policy is tominimize risk with the aim to achieve financial structureobjectives defined and approved in the management’s financeplans. Borrowing requirements of the Group’s companies arepooled by the Group’s central finance department in order tomanage net positions and the funding of portfolio developmentsconsistently with management’s plans while maintaining alevel of risk exposure within prescribed limits. Eni enters intointerest rate derivative transactions, in particular interestrate swaps, to effectively manage the balance between fixed andfloating rate debt.

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Such derivatives are evaluated at fair value on the basis ofmarket prices provided from specialized sources. Changes in fairvalue of those derivatives are normally recognized through theprofit and loss account as they do not meet the formal criteriato be accounted for under the hedge accounting method inaccordance with IAS 39. Value at risk deriving from interest rateexposure is measured daily on the basis of a variance/covariancemodel, with a 99% confidence level and a 20-day holding period. 

*Commodity risk*Eni’s results of operations are affected by changes in theprices of commodities. A decrease in oil and gas prices generallyhas a negative impact on Eni’s results of operations andvice-versa. Eni manages exposure to commodity price risk arisingin normal trading and commercial activities in view of achievingstable margins. In order to accomplish this, Eni uses derivativestraded on the organized markets of ICE and NyMEx (futures) andderivatives traded over the counter (swaps, forward, contractsfor differences and options) with the underlying commoditiesbeing crude oil, refined products or electricity. Suchderivatives are evaluated at fair value on the basis of marketprices provided from specialized sources or, absent marketprices, on the basis of estimates provided by brokers or suitableevaluation techniques. Changes in fair value of those derivativesare normally recognized through the profit and loss account asthey do not meet the formal criteria to be recognized as hedgesin accordance with IAS 39. Value at risk deriving from commodityexposure is measured daily on the basis of a historicalsimulation technique, with a 95% confidence level and a one-dayholding period. The following table shows amounts in terms ofvalue at risk, recorded in the first half of 2008 (compared withfull year 2007) relating to interest rate and exchange rate risksin the first section, and commodity risk in the second section.

*(Value at risk - parametric methodvariance/covariance; holding period: 20 days; confidence level:99%)*

|   | **2007** |   | **2008** |
|--------|----------|--------|----------|
|   |          |   |          |

| (euro        million) |   | High |   | Low |   | Avg |   | At year end |   | High |   | Low |   | Avg |   | At year end |
|-----------------------|--------|------|--------|-----|--------|-----|--------|-------------|--------|------|--------|-----|--------|-----|--------|-------------|
|                  |   |      |   |     |   |     |   |             |   |      |   |     |   |     |   |             |

| Interest rate        |   | 7.36 |   | 0.47 |   | 1.39 |   | 4.35 |   | 12.31 |   | 0.73 |   | 4.17 |   | 6.54 |
|----------------------|--------|------|--------|------|--------|------|--------|------|--------|-------|--------|------|--------|------|--------|------|
| Exchange        rate |   | 1.25 |   | 0.03 |   | 0.21 |   | 0.43 |   | 1.48  |   | 0.09 |   | 0.48 |   | 0.47 |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

*(Value at risk - historic simulationmethod; holding period: 1 day; confidence level: 95%)*

|   | **2007** |   | **2008** |
|--------|----------|--------|----------|
|   |          |   |          |

| (U.S. $        million) |   | High |   | Low |   | Avg |   | At year end |   | High |   | Low |   | Avg |   | At year end |
|-------------------------|--------|------|--------|-----|--------|-----|--------|-------------|--------|------|--------|-----|--------|-----|--------|-------------|
|                    |   |      |   |     |   |     |   |             |   |      |   |     |   |     |   |             |

| Area oil, products              |   | 44.59 |   | 4.39  |   | 20.17 |   | 12.68 |   | 46.48 |   | 3.44  |   | 19.88 |   | 5.43  |
|---------------------------------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|
| Area Gas        & Power (*) |   | 54.11 |   | 20.12 |   | 34.56 |   | 25.57 |   | 67.04 |   | 24.38 |   | 43.53 |   | 32.07 |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                         |
|--------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (*)          |    | Amounts        relating to the Gas & Power business also include        results of Distrigas NV for the months of November and        December 2008 based on the closing date of acquisition. |

*Credit risk*Credit risk is the potential exposure of the Group to losses incase counterparties fail to perform or pay amounts due. The Groupmanages differently credit risk depending on whether credit riskarises from exposure to financial counterparties or to customersrelating to outstanding receivables. Individual business unitsare responsible for managing credit risk arising in the normalcourse of the business. The Group has established formal creditsystems and processes to ensure that before trading with a newcounterpart can start, its creditworthiness is assessed. Alsocredit litigation and receivable collection activities areassessed. The monitoring activity of credit risk exposure isperformed at the Group level according to set guidelines andmeasurement techniques that establish counterparty limits andsystems to monitor exposure against limits and report regularlyon those exposures. Specifically, credit risk exposure tomulti-business clients and exposures higher than the limit set ateuro 4 million are closely monitored. Monitoring activities donot include retail clients and public administrations. Theassessment methodology assigns a score to individual clientsbased on publicly available financial data and capital,profitability and liquidity ratios. Based on those scores, aninternal credit rating is assigned to each counterparty that isaccordingly allocated to its proper risk category. The Group riskcategories are comparable to those prepared by the main ratingagencies on the marketplace. The Group’s internal ratingsare also benchmarked against ratings prepared by a specializedexternal source.

With regard to risk arising from financial counterparties, Enihas established guidelines prior to entering into cash managementand derivative contracts to assess the counterparty’sfinancial soundness and rating in view of optimizing the riskprofile of financial activities while pursuing operationaltargets. Maximum limits of risk exposure are set in terms ofmaximum amounts of credit exposures for categories ofcounterparties as defined by the 

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Company’s Board of Directors taking into account thecredit ratings provided by the primary credit rating agencies onthe marketplace. Credit risk arising from financialcounterparties is managed by the Group central financedepartments, including Eni’s subsidiary Eni Trading &Shipping which specifically engages in commodity derivativestransactions. Those are the sole Group entities entitled to beparty to financial transactions due to the Group centralizedfinance model. Eligible financial counterparties are closelymonitored to check exposures against limits assigned to eachcounterparty on a daily basis. Exceptional market conditions haveforced the Group to adopt contingency plans and under certaincircumstances to suspend eligibility to be a Group financialcounterparty. Actions implemented also have been intended tolimit concentrations of credit risk by maximizing counterpartydiversification and turnover. Counterparties have been alsoselected on more stringent criteria particularly in transactionson derivatives instruments and with maturity longer than athree-month period. Eni has not experienced materialnon-performance by any counterparty. As of December 31, 2007 and2008, Eni had no significant concentrations of credit risk. 

*Liquidity risk*Liquidity risk is the risk that suitable sources of funding forthe Group may not be available, or the Group is unable to sellits assets on the market place as to be unable to meet short-termfinance requirements and to settle obligations. Such a situationwould negatively impact the Group results as it would result inthe Company incurring higher borrowing expenses to meet itsobligations or under the worst of conditions the inability of theCompany to continue as a going concern. As part of its financialplanning process, Eni manages the liquidity risk by targetingsuch a capital structure as to allow the Company to maintain alevel of liquidity adequate to the Group’s needs optimizingthe opportunity cost of maintaining liquidity reserves alsoachieving an efficient balance in terms of maturity andcomposition of finance debt. The Group capital structure is setaccording to the Company’s industrial targets and within thelimits established by the Company’s Board of Directors whoare responsible for prescribing the maximum ratio of debt tototal equity and minimum ratio of medium and long-term debt tototal debt as well as fixed rate medium and long-term debt tototal medium and long-term debt. In spite of ongoing tough creditmarket conditions resulting in higher spreads to borrowers, theCompany has succeeded in maintaining access to a wide range offunding at competitive rates through the capital markets andbanks. The actions implemented as part of Eni’s financialplanning have enabled the Group to maintain access to the creditmarket particularly via the issue of commercial paper alsotargeting to increase the flexibility of funding facilities. Theabove mentioned actions aimed at ensuring availability ofsuitable sources of funding to fulfill short-term commitments anddue obligations also preserving the necessary financialflexibility to support the Group’s development plans. Indoing so, the Group has pursued an efficient balance of financedebt in terms of maturity and composition leveraging on thestructure of its lines of credit particularly the committed ones.

At present, the Group believes it has access to sufficientfunding and has also both committed and uncommitted borrowingfacilities to meet currently foreseeable borrowing requirements. 

As of December 31, 2008, Eni maintained short-term committedand uncommitted unused borrowing facilities of euro 11,099million, of which euro 3,313 million were committed, andlong-term committed unused borrowing facilities of euro 1,850million.

These facilities were under interest rates that reflectedmarket conditions. Fees charged for unused facilities were notsignificant. Eni has in place a program for the issuance of EuroMedium Term Notes up to euro 10 billion, of which euro 6,391million were drawn as of the balance sheet date.

The Group has debt ratings of AA- and A-1+ respectively forthe long and short-term debt assigned by Standard &Poor’s and Aa2 and P-1 assigned by Moody’s; the outlookis stable for both. 

The tables below summarize the Group main contractualobligations for finance debt repayments, including expectedpayments for interest charges, and trade and other payablesmaturities.

**Finance debt**

|    |    | **Maturity year** |
|--------------|--------------|-------------------|
|         |         |                   |

| (euro        million) |    | 2009 |    | 2010 |    | 2011 |    | 2012 |    | 2013 |    | 2014 and thereafter |    | Total |
|-----------------------|--------------|------|--------------|------|--------------|------|--------------|------|--------------|------|--------------|---------------------|--------------|-------|
|             |         |      |    |      |    |      |    |      |    |      |    |                     |    |       |

| Non current debt                     |   | 549       |   | 3,630     |   | 797     |   | 2,687     |   | 1,981     |   | 4,834     |   | **14,478** |
|--------------------------------------|--------|-----------|--------|-----------|--------|---------|--------|-----------|--------|-----------|--------|-----------|--------|------------|
| Current        financial liabilities |   | 6,359     |   | -         |   | -       |   | -         |   | -         |   | -         |   | **6,359**  |
|                                 |   | **6,908** |   | **3,630** |   | **797** |   | **2,687** |   | **1,981** |   | **4,834** |   | **20,837** |
| Interest        on finance debt      |   | 502       |   | 469       |   | 412     |   | 383       |   | 336       |   | 791       |   | **2,893**  |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

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**Trade and other payables**

|    |    | **Maturity year** |
|--------------|--------------|-------------------|
|    |    |                   |

| (euro        million) |    | 2009 |    | 2010-2013 |    | 2014 and thereafter |    | Total |
|-----------------------|--------------|------|--------------|-----------|--------------|---------------------|--------------|-------|
|             |    |      |    |           |    |                     |    |       |

| Trade payables                  |   | 12,590     |   | -      |   | -      |   | **12,590** |
|---------------------------------|--------|------------|--------|--------|--------|--------|--------|------------|
| Advances,        other payables |   | 7,925      |   | 28     |   | 27     |   | **7,980**  |
|                            |   | **20,515** |   | **28** |   | **27** |   | **20,570** |

|   |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|

In addition to finance debt and trade payables presented inthe financial statements, the Group has in place a number ofcontractual obligations arising in the normal course of thebusiness. To meet these commitments, the Group will have to makepayments to third parties. The Company’s main obligationsare certain arrangements to purchase goods or services that areenforceable and legally binding and that specify all significantterms. Such arrangements include non-cancelable, long-termcontractual obligations to secure access to supply and transportof natural gas, which include take-or-pay clauses whereby theCompany obligations consist of off-taking minimum quantities ofproduct or service or paying the corresponding cash amount thatentitles the Company to off-take the product in future years.Future obligations in connection with these contracts werecalculated by applying the forecasted prices of energy orservices included in the four-year business plan approved by theCompany’s Board of Directors and on the basis of thelong-term market scenarios used by Eni for planning purposes tominimum take and minimum ship quantities. 

The table below summarizes the Group principal contractualobligations as of the balance sheet date, shown on anundiscounted basis.

**Expected payments by period under contractualobligations and commercial commitments**

|   |   | **Maturity year** |
|--------|--------|-------------------|
|   |   |                   |

| (euro        million) |    | 2009 |    | 2010 |    | 2011 |    | 2012 |    | 2013 |    | 2014 and thereafter |    | Total |
|-----------------------|--------------|------|--------------|------|--------------|------|--------------|------|--------------|------|--------------|---------------------|--------------|-------|
|                  |         |      |         |      |         |      |         |      |         |      |         |                     |         |       |

| **Operating lease obligations**(1)                                                     |   | **618**    |   | **1,025**  |   | **697**    |   | **468**    |   | **395**    |   | **1,084**   |   | **4,287**   |
|----------------------------------------------------------------------------------------|--------|------------|--------|------------|--------|------------|--------|------------|--------|------------|--------|-------------|--------|-------------|
| **Decommissioning        liabilities**(2)                                              |   | **269**    |   | **35**     |   | **61**     |   | **18**     |   | **256**    |   | **8,830**   |   | **9,469**   |
| **Environmental liabilities**                                                          |   | **396**    |   | **421**    |   | **284**    |   | **223**    |   | **221**    |   | **443**     |   | **1,988**   |
| **Purchase        obligations**(3)                                                     |   | **17,938** |   | **13,777** |   | **14,326** |   | **14,405** |   | **14,112** |   | **185,415** |   | **259,973** |
| Gas                                                                                    |   |       |   |       |   |       |   |       |   |       |   |        |   |        |
| - *Natural        gas to be purchased in connection with take-or-pay        contracts* |   | 15,694     |   | 13,041     |   | 13,574     |   | 13,610     |   | 13,343     |   | 179,067     |   | **248,329** |
| - *Natural gas to be transported in connection        with ship-or-pay contracts*      |   | 539        |   | 537        |   | 545        |   | 549        |   | 528        |   | 3,151       |   | **5,849**   |
| Other        take-or-pay and ship-or-pay obligations                                   |   | 139        |   | 135        |   | 126        |   | 111        |   | 106        |   | 838         |   | **1,455**   |
| Other purchase obligations (4)                                                         |   | 1,566      |   | 64         |   | 81         |   | 135        |   | 135        |   | 2,359       |   | **4,340**   |
| **Other        obligations**                                                           |   | **8**      |   | **5**      |   | **5**      |   | **5**      |   | **5**      |   | **152**     |   | **180**     |
| of which:                                                                              |   |       |   |       |   |       |   |       |   |       |   |        |   |        |
| -        Memorandum of intent relating to Val d’Agri                              |   | 8          |   | 5          |   | 5          |   | 5          |   | 5          |   | 152         |   | **180**     |
|                                                                                   |   | **19,229** |   | **15,263** |   | **15,373** |   | **15,119** |   | **14,989** |   | **195,924** |   | **275,897** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                                                                                                                                                                                                                |
|--------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)          |    | Operating        leases primarily regarded assets for drilling activities,        time charter and long-term rentals of vessels, lands,        service stations and office buildings. Such leases did        not include renewal options. There are no significant        restrictions provided by these operating leases which        limit the ability of the Company to pay dividend, use        assets or to take on new borrowings. |
| (2)          |    | Represents        the estimated future costs for the decommissioning of oil        and natural gas production facilities at the end of the        producing lives of fields, well-plugging, abandonment and        site restoration.                                                                                                                                                                                                     |
| (3)          |    | Represents        any agreement to purchase goods or services that is        enforceable and legally binding and that specifies all        significant terms.                                                                                                                                                                                                                                                                            |
| (4)          |    | Mainly refers        to arrangements to purchase capacity entitlements at        certain re-gasification facilities in the U.S.                                                                                                                                                                                                                                                                                                          |

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The table below summarizes Eni’s capitalexpenditure commitments for property, plant and equipment andcapital projects at December 31, 2008. Capital expenditures areconsidered to be committed when the project has received theappropriate level of internal management approval. Such costs areincluded in the amounts shown.

|   |   | **Maturity year** |
|--------|--------|-------------------|
|   |   |                   |

| (euro        million) |    | 2009 |    | 2010 |    | 2011 |    | 2012 |    | 2013 and subsequent years |    | Total |
|-----------------------|--------------|------|--------------|------|--------------|------|--------------|------|--------------|---------------------------|--------------|-------|
|                  |         |      |         |      |         |      |         |      |         |                           |         |       |

| Committed on major projects     |   | 4,938      |   | 3,831     |   | 2,697     |   | 1,837     |   | 9,856      |   | **23,159** |
|---------------------------------|--------|------------|--------|-----------|--------|-----------|--------|-----------|--------|------------|--------|------------|
| Other        committed projects |   | 5,147      |   | 4,342     |   | 3,186     |   | 2,389     |   | 9,846      |   | **24,910** |
|                            |   | **10,085** |   | **8,173** |   | **5,883** |   | **4,226** |   | **19,702** |   | **48,069** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

*Country risk*Substantial portions of Eni’s hydrocarbons reserves arelocated in countries outside the EU and North America, certain ofwhich may be politically or economically less stable than EU orNorth American. At December 31, 2008, approximately 70% ofEni’s proved hydrocarbons reserves were located in suchcountries. Similarly, a substantial portion of Eni’s naturalgas supplies comes from countries outside the EU and NorthAmerica. In 2008, approximately 60% of Eni’s domestic supplyof natural gas came from such countries. Developments in thepolitical framework, economic crisis, social unrest cancompromise temporarily or permanently Eni’s ability tooperate or to economically operate in such countries, and to haveaccess to oil and gas reserves. Further risks related to theactivity undertaken in these countries, are represented by: (i)lack of well established and reliable legal systems anduncertainties surrounding enforcement of contractual rights; (ii)unfavorable developments in laws and regulations leading toexpropriation of Eni’s titles and mineral assets, changes inunilateral contractual clauses reducing value of Eni’sassets; (iii) restrictions on exploration, production, importsand exports; (iv) tax or royalty increases; and (v) civil andsocial unrest leading to sabotages, acts of violence andincidents. While the occurrence of these events is unpredictable,it is possible that they can have a material adverse impact onEni’s financial condition and results of operations. Eniperiodically monitors political, social and economic risks ofapproximately 60 countries where it has invested, or, with regardto upstream projects evaluation, where Eni is planning to investin order to assess returns of single projects based also on theevaluation of each country’s risk profile. Country risk ismitigated in accordance with guidelines on risk managementdefined in the procedure "Project risk assessment andmanagement". In the most recent years, unfavorabledevelopments in the regulatory framework, mainly regarding taxissues, have been implemented or announced also in EU countriesand in North America. 

*Operational risk*Eni’s business activities conducted in and outside of Italyare subject to a broad range of laws and regulations, includingspecific rules concerning oil and gas activities currently inforce in countries in which it operates. In particular, thoselaws and regulations require the acquisition of a license beforeexploratory drilling may commence and compliance with health,safety and environment standards. Environmental laws imposerestrictions on the types, quantities and concentration ofvarious substances that can be released into the environment andon discharges to surface and subsurface water. In particular Eniis required to follow strict operating practices and standards toprotect biodiversity when exploring for, drilling and producingoil and gas in certain ecologically sensitive locations(protected areas). Breach of environmental, health and safetylaws exposes employees to criminal and civil liability and in thecase of violation of certain rules regarding safety on theworkplace also companies can be liable as provided for by ageneral EU rule on businesses liability due to negligent orwillful conduct on part of their employees as adopted in Italywith Law Decree No. 231/2001.

Environmental, health and safety laws andregulations have a substantial impact on Eni’s operationsand expenses and liabilities that Eni may incur in relation tocompliance with environmental, health and safety laws andregulations are expected to remain material to the group’sresults of operations or financial position in future years.Recently enacted regulation of safety and health of the workplacein Italy will impose a new array of obligations to the Companyoperations, particularly regarding contractors. New regulationprescribe that a company adopts certified operational andorganizational systems whereby the Company can discharge possibleliabilities due to a violation of health and security standardson condition that adopted operational systems and processesworked properly and were effective.

Eni has adopted guidelines for assessing andmanaging health, safety and environmental (HSE) risks, with theobjective of protecting Eni’s employees, the populationsinvolved in its activity, contractors and clients, and theenvironment and being in compliance with local and internationalrules and regulations. Eni’s guidelines prescribe theadoption of international best practices in setting internalprinciples, standards and solutions. The ongoing process foridentifying, evaluating and managing HSE operations in each phaseof the business activity and is performed through the adoption ofprocedures and effective pollution management systems tailored onthe 

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peculiarities of each business and industrialsite and on steady enhancement of plants and process.Additionally, coding activities and procedures on operatingphases allow reduce the human component in the plant riskmanagement. Operating emergencies that may have an adverse impacton the assets, people and the environment are managed by thebusiness units for each site. These units manage the HSE riskthrough a systematic way that involves having emergency responseplans in place with a number of corrective actions to be takenthat minimize damage in the event of an incident. In the case ofmajor crisis, Divisions/Entities are assisted by the Eni Unit ofCrises to deal with the emergency through a team which has thenecessary training and skills to coordinate in a timely andefficient manner resources and facilities.

The integrated management system of health,safety and environmental matters is supported by the adoption ofEni’s Model of HSE operations in all the Divisions andcompanies of Eni Group. This is a procedure based on an annualcycle of planning, implementation, control, review of results anddefinition of new objectives. The model is directed towards theprevention of risks, the systematic monitoring and control of HSEperformance, in a continuous improvement cycle, also subject toaudits by internal and independent experts. Major refining andpetrochemical facilities of Eni are certified to internationalenvironmental standards, such as ISO14001, OHSAS 18001 and EMAS.Eni provides a program of specific training and development forHSE staff in order to:(i) promote the execution of behaviors consistent withguidelines;(ii) drive people’s learning growth process by developingprofessionalism, management and corporate culture;(iii) support management knowledge and control of HSE risks.

**Possible evolution of the Italian gasmarket**Legislative Decree No. 164/2000 opened the Italian natural gasmarket to competition, impacting on Eni’s activities, as thecompany is engaged in all the phases of the natural gas chain.The opening to competition was achieved through the enactment ofcertain antitrust thresholds on volumes input into the nationaltransport network and on volumes sold to final customers. Theseenabled new competitors to enter the Italian gas market,resulting in declining selling margins on gas. Other materialaspects regarding the Italian gas sector regulation are theregulated access to natural gas infrastructure (transportbackbones, storage fields, distribution networks and LNGterminals), the Code adopted by the Authority for Electricity andGas on the issue of unbundling which forbids a controlling entityfrom interfering in the decision-making process of itssubsidiaries running gas transport and distributioninfrastructures and the circumstance that the Authority forElectricity and Gas is entrusted with certain powers in thematters of natural gas pricing and in establishing tariffs forthe use of natural gas infrastructures. Particularly, theAuthority for Electricity and Gas holds a general surveillancepower on pricing in the natural gas market in Italy and the powerto establish selling tariffs for supply of natural gas toresidential and commercial users consuming less than 200,000 CM/y(qualified as non eligible customers at December 31, 2002 asdefined by Legislative Decree No. 164/2000) taking into accountthe public goal of containing the inflationary pressure due torising energy costs. Accordingly, decisions of the Authority onthese matters may limit the ability of Eni to pass an increase inthe cost of fuels onto final consumers of natural gas. As amatter of fact, following a complex and lengthy administrativeprocedure started in 2004 and finalized in March 2007 withResolution No. 79/2007, the Authority finally established a newindexation mechanism for updating the raw material cost componentin supplies to residential and commercial users consuming lessthan 200,000 CM/y, establishing, among other things: (i) that anincrease in the international price of Brent crude oil is onlypartially transferred to residential and commercial users ofnatural gas in case international prices of Brent crude oilexceed the 35 dollars per barrel threshold; and (ii) that Italiannatural gas importers – including Eni – mustrenegotiate wholesale supply contracts in order to take accountof this new indexation mechanism.

Also certain provisions of law may limit theCompany ability to set commercial margins. Specifically, LawDecree No. 112 enacted in June 2008 forbids energy companies likeEni to pass to prices to final customers higher income taxesincurred in connection with a supplemental tax rate of 5.5percentage points introduced by the same decree on energycompanies with a yearly turnover in excess of euro 25 million.The Authority for Electricity and Gas is in charge of monitoringcompliance with the rule. The Authority has subsequentlyestablished with a set of deliberations that energy companieshave to adopt effective operational and monitoring systemscertified by the Company CEO in order to prevent unlawfulincreases of final prices of gas.

In order to meet the medium and long-term demandfor natural gas, in particular in the Italian market, Eni enteredinto long-term purchase contracts with producing countries. Thesecontracts which contain take-or-pay clauses will ensure totalsupply volumes of approximately 62.4 BCM/y of natural gas to Eniby 2010 (excluding take-or-pay volumes coming from Distrigasacquisition which will destined to supply the Belgian market).Despite the fact that an increasing portion of natural gasvolumes purchased under said contracts is planned to be marketedoutside Italy, management believes that in the long-termunfavorable trends in the Italian demand and supply for naturalgas, also taking into account the start-up of new import capacityto the Italian market by Eni and third parties 

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as well as implementation of all publiclyannounced plans for the construction of new importinfrastructures (backbone upgrading and new LNG terminals), anddevelopments within the Italian regulatory framework, representrisk factors for the ability of the Company to meet itscontractual obligations in connection with its take-or-pay supplycontracts. Particularly, should natural gas demand in Italy growat a lower pace than management expectations, also in view of theexpected build-up of natural gas supplies to the Italian market,the Company could face a further increase in competitive pressureon the Italian gas market resulting in a negative impact on itsselling margins, taking account of Eni’s gas availabilityunder take-or-pay supply contracts and risks in executing itsexpansion plans to grow sales volumes in European markets.

**Specific risks associated with theexploration and production of oil and natural gas**The exploration and production of oil and natural gas requireshigh levels of capital expenditure and entails particulareconomic risks. It is subject to natural hazards and otheruncertainties including those relating to the physicalcharacteristics of oil or natural gas fields. Exploratoryactivity involves numerous risks including the risk of dry holesor failure to find commercial quantities of hydrocarbons.Developing and marketing hydrocarbons reserves typically requiresseveral years after a discovery is made. This is because adevelopment project involves an array of complex and lengthyactivities, including appraising a discovery in order to evaluateits commerciality, sanctioning a development project and buildingand commissioning relating facilities.

As a consequence, rates of return of such longlead-time projects are exposed to the volatility of oil and gasprices and the risk of an increase in developing and liftingcosts, resulting in lower rates of return. This set ofcircumstances is particularly important to those projectsintended to develop reserves located in deep water and harshenvironments, where the majority of Eni’s planned andongoing projects is located. 

**Managing sources of funds**Eni management makes use of the leverage as a financial measureto assess the soundness and efficiency of the Group balance sheetin terms of optimal mix between net borrowings and net equity,and to carry out benchmark analysis with industry standards.Leverage is a measure of the company’s level ofindebtedness, calculated as the ratio between net borrowings andshareholders’ equity, including minority interests. In themedium-term, management plans to target a level of leverage up to0.4 which is intended to provide an efficient capital structureand the appropriate level of financial flexibility.

 

 

 

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**Other information about financialinstruments**The carrying amount of financial instruments and relevanteconomic effect for the year 2008 consisted of the following:

|   |   | **Finance income (expense) recognized in** |
|--------|--------|--------------------------------------------|
|   |   |                                            |

| (euro        million) |   | Carrying amount |   | Profit and loss account |   | Equity |
|-----------------------|--------|-----------------|--------|-------------------------|--------|--------|
|                  |   |                 |   |                         |   |        |

| **Held-for-trading financial instruments**                                                |   |    |   |   |      |   |   |    |   |
|-------------------------------------------------------------------------------------------|--------|---------|--------|--------|-----------|--------|--------|---------|--------|
| Non-hedging        derivatives (a)                                                        |   | (374    | )      |   | (558      | )      |   |    |   |
| **Held-to-maturity financial instruments**                                                |   |    |   |   |      |   |   |    |   |
| Securities                                                                                |   | 50      |   |   | 2         |   |   | 3       |   |
| **Available-for-sale financial instruments**                                              |   |    |   |   |      |   |   |    |   |
| Securities        (a)                                                                     |   | 495     |   |   | 19        |   |   |    |   |
| **Receivables and payables and other        assets/liabilities valued at amortized cost** |   |    |   |   |      |   |   |    |   |
| Trade        receivables and other (b)                                                    |   | 22,446  |   |   | (254      | )      |   |    |   |
| Financing receivables (a)                                                                 |   | 1,908   |   |   | 117       |   |   |    |   |
| Trade        payables and other (c)                                                       |   | 20,570  |   |   | (53       | )      |   |    |   |
| Financing payables (a)                                                                    |   | 20,837  |   |   | (607      | )      |   |    |   |
| **Assets        at fair value through profit or loss (fair value option)**                |   |    |   |   |      |   |   |    |   |
| Investments (a)                                                                           |   | 2,741   |   |   | 241       |   |   |    |   |
| **Net        liabilities for hedging derivatives**(d)                                     |   | **280** |   |   | **1,012** |   |   | **964** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)          |    | Gains or        losses were recognized in the profit and loss account        within "Finance income (expense)".                                                                                                                                                                                                                                                                                                     |
| (b)          |    | In the profit        and loss account, impairments and losses on receivables        were recognized within "Purchase, services and        other" for euro 385 million whilst negative exchange        differences arising from accounts denominated in foreign        currency and translated into euro at year-end were        recognized within "Finance income (expense)"        for euro 100 million. |
| (c)          |    | Positive        exchange differences arising from accounts denominated in        foreign currency and translated into euro at year-end        were recognized in the profit and loss account within        "Finance income (expense)".                                                                                                                                                                              |
| (d)          |    | Gains or        losses were recognized in the profit and loss account        within "Net sales from operations" and        "Purchase, services and other" for euro 1,005        million within "Finance income (expense)" for        euro 7 million (time value component).                                                                                                                     |

**Legal Proceedings**

Eni is a party to a number of civil actions and administrativearbitral and other judicial proceedings arising in the ordinarycourse of business. Based on information available to date, andtaking into account the existing risk provisions, Eni believesthat the foregoing will not have an adverse effect on Eni’sConsolidated Financial Statements. The following is a descriptionof the most significant proceedings currently pending. Unlessotherwise indicated below, no provisions have been made for theselegal proceedings as Eni believes that negative outcomes are notprobable or because the amount of the provision cannot beestimated reliably.

**1. Environment**

**1.1 Criminal proceedings**

| **ENI SPA** |
|-------------|
| **(i)**     |   | **Subsidence.**The Court        of Rovigo conducted investigations concerning a        subsidence phenomenon allegedly caused by hydrocarbon        exploration and extraction activities in the Ravenna and        North Adriatic area both on land and in the sea. Eni        appointed an independent and interdisciplinary scientific        commission, composed of prominent and highly qualified        international experts of subsidence caused by hydrocarbon        exploration and extraction activities, with the aim of        verifying the magnitude and effects and any actions        appropriate to reduce or to neutralize any subsidence        phenomenon in the area. This commission produced a study        which excludes the possibility of any risk to human        health or damage to the environment. The study also        states that worldwide there are no instances of accidents        of harm to public safety caused by subsidence induced by        hydrocarbon production. It also shows that Eni employs        the most advanced techniques for monitoring, measuring        and controlling the soil. This proceeding is |

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|   |   | in the first level hearing        stage. The Veneto Region, other local bodies and two        private entities have been acting as plaintiffs. Eni was        admitted as a defendant. The Court decided that the        proceeding must be heard by the Court of Ravenna. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(ii)**  |   | **Alleged damage.**In        2002, the public prosecutor of Gela commenced a criminal        investigation to ascertain alleged damage caused by        emissions of the Gela plant, owned by Polimeri Europa        SpA, Syndial SpA (formerly EniChem SpA) and Raffineria di        Gela SpA. The judge for the preliminary hearing dismissed        the accusation of adulteration of food products, while        the proceeding for the other allegations regarding        pollution and environmental damage remains underway. The        trial ended in acquittal with regard to the general        manager and officer pro tempore of the refinery. The        sentence of the Gela Tribunal stated that the charges        were lacking factual basis.      |
|-----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(iii)** |   | **Alleged negligent fire in        the refinery of Gela.**In June 2002, in connection        with a fire at the refinery of Gela, a criminal        investigation began concerning alleged negligent fire,        environmental crimes and crimes against natural beauty.        First degree proceedings ended with an acquittal        sentence. In November 2007, the public prosecutors of        Gela and of Caltanissetta filed an appeal against this        decision.                                                                                                                                                                                                                                                                                       |
| **(iv)**  |   | **Investigation of the        quality of ground water in the area of the refinery of        Gela.**In 2002, the public prosecutor of Gela        commenced a criminal investigation concerning the        refinery of Gela to ascertain the quality of ground water        in the area of the refinery. Eni is charged of having        breached environmental rules concerning the pollution of        water and soil and of illegal disposal of liquid and        solid waste materials. The preliminary hearing phase was        closed for one employee who would stand trial, while the        preliminary hearing phase is ongoing for other        defendants. During the hearings the judge admitted as        plaintiffs three environmental associations. |
| **(v)**   |   | **Alleged negligent fire (Priolo).**The        public prosecutor of Siracusa commenced an investigation        regarding certain Eni managers who were previously in        charge of conducting operations at the Priolo refinery        (Eni divested this asset in 2002) to ascertain whether        they acted with negligence in connection with a fire that        occurred at the Priolo plants on April 30 and May 1-2,        2006. After preliminary investigations and based on the        outcome of preliminary hearing the public prosecutor        requested the opening of a proceeding against the        mentioned managers for negligent behavior.                                                                                               |
| **(vi)**  |   | **Groundwater at the Priolo site.**The        Public Prosecutor of Siracusa (Sicily) has started an        investigation in order to ascertain the level of        contamination of the groundwater at the Priolo site. The        Company has been notified that a number of its executive        officers are being investigated who were in charge at the        time of the events subject to probe, including chief        executive officers and plant general managers of the        Company’s subsidiaries AgipPetroli SpA (now merged        into the parent company), Syndial and Polimeri Europa.        Probes on technical issues are ongoing as required by the        Prosecutor.                                                               |

|             |   |   |
|------------------|--------|--------|
| **ENIPOWER SPA** |

| **(i)**  |   | **Alleged unauthorized        waste management activities.** In 2004, the public        prosecutor of Rovigo commenced an investigation for        alleged crimes related to unauthorized waste management        activities in Loreo relating to the samples of soil used        during the construction of the new EniPower power station        in Mantova. The prosecutor requested the CEO of EniPower        and the managing director of the Mantova plant at the        time of the alleged crime to stand trial. |
|----------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(ii)** |   | **Air emissions.**The        public prosecutor of Mantova commenced an investigation        against two managers of the Mantova plant in connection        with air emissions by the new power plant.                                                                                                                                                                                                                                                                                                                     |

|            |   |   |
|-----------------|--------|--------|
| **SYNDIAL SPA** |

| **(i)** |   | **Porto Torres.** In        March 2009, the Public Prosecutor of Sassari (Sardinia)        resolved to commence a criminal trial against a number of        executive officers and managing directors of companies        engaging in petrochemicals operations at the site of        Porto Torres, including the manager responsible for plant        operations of the Company’s fully-owned subsidiary        Syndial. The charge involves environmental damage and        poisoning of water and stuff destined to feeding. A        preliminary hearing is scheduled in July 2009. |
|---------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**1.2 Civil and administrative proceedings**

| **SYNDIAL SPA (FORMER ENICHEM SPA)** |
|--------------------------------------|

| **(i)** |   | **Alleged pollution caused        by the activity of the Mantova plant.** In 1992, the        Ministry of Environment summoned EniChem SpA (now Syndial        SpA) and Edison SpA before the Court of Brescia. The        Ministry requested, primarily, environmental remediation        for the alleged pollution caused by the activity |
|---------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   |   | of the Mantova plant from        1976 until 1990, and provisionally, in case there was no        possibility to remediate, the payment of environmental        damages. Edison agreed on a settlement with the Ministry        whereby Edison quantified compensation for environmental        damage freeing from any obligation Syndial, which        purchased the plant in 1989. Parties are working through        a possible settlement of the matter. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(ii)** |   | **Summon before the Court        of Venice for environmental damages allegedly caused to        the lagoon of Venice by the Porto Marghera plants.** On        December 13, 2002, EniChem SpA (now Syndial SpA), jointly        with Ambiente SpA (now merged into Syndial SpA) and        European Vinyls Corporation Italia SpA, was summoned        before the Court of Venice by the Province of Venice. The        province requested compensation for environmental damages        that were not quantified, allegedly caused to the lagoon        of Venice by the Porto Marghera plants, which were        already the subject of two previous criminal proceedings        against employees and managers of the defendants. EVC        Italia and Ineos presented an action to be indemnified by        Eni’s Group companies in case the alleged pollution        is proved. The environmental damage has been assessed by        an independent consultant who filed his advice to be        discussed in a hearing set in October 2009. |
|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(iii)** |   | **Claim of environmental        damages, allegedly caused by industrial activities in the        area of Crotone, commenced by the President of the        Regional Council of Calabria.**On April 14, 2003, the        President of the Regional Council of Calabria, as        Delegated Commissioner for Environmental Emergency in the        Calabria Region, commenced an action against EniChem SpA        (now Syndial SpA) with reference to environmental damages        for approximately euro 129 million and damages for euro        250 million (plus interest and compensation) in        connection with loss of income and damage to property        allegedly caused by industrial activities in the area of        Crotone. In addition, the Province of Crotone is acting        as plaintiff, claiming damage for euro 300 million. With        a decision in May 2007, the Court of Milan declared the        invalidity of the power of proxy conferred to the        Delegated Commissioner to act on behalf of the Calabria        Region with the notice served to Syndial SpA and decided        the liquidation of expenses born by the defendant. The        Province of Crotone appealed this decision. The second        instance court accepted this appeal and Syndial repealed        this determination. On October 21, 2004, Syndial was        convened before the Court of Milan by the Calabria Region        which is seeking to obtain a condemnation of Syndial for        a damage payment, should the office of the Delegated        Commissioner for Environmental Emergency in the Calabria        Region cease during this proceeding. The Calabria Region        requested a damage payment amounting to euro 800 million        as already requested by the Delegated Commissioner for        Environmental Emergency in the Calabria Region in the        proceeding commenced in 2003. This new proceeding is in        the preliminary investigation stage. This proceeding was        unified with the one opened by the Ministry of the        Environment. Syndial filed a new project for the        environmental remediation of the site to be approved by        the Ministry and the body of public administrations and        entities involved in the matter that expressed a first        partial consent in January 2009. The environmental        provision was consequently increased. In 2006, the        Council of Ministers, Ministry for the Environment and        the Delegated Commissioner for Environmental Emergency in        the Calabria Region represented by the State Lawyer        requested Syndial to appear before the Court of Milan to        obtain the ascertainment, quantification and payment of        damage (in the form of land, air and water pollution and        therefore of the general condition of the population)        caused by the operations of Pertusola Sud SpA in the        Municipality of Crotone and in surrounding        municipalities. The local authorities requested the        ascertainment of Syndial’s responsibility as        concerns expenses borne and to be borne for the cleanup        and reclamation of sites, currently quantified at euro        129 million. This proceeding concerns the same matter and        damage claim as the proceedings commenced by the        Delegated Commissioner for Environmental Emergency in the        Calabria Region and the Calabria Region against Syndial        in 2003 and 2004, respectively. |
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| **(iv)**  |   | **Summon for alleged        environmental damage caused by DDT pollution in the Lake        Maggiore.** With a temporarily executive decision dated        July 3, 2008 the District Court of Turin sentenced the        subsidiary Syndial SpA (former EniChem) to compensate for        environmental damages that were allegedly caused when        EniChem managed an industrial plant at Pieve Vergonte        during the 1990-1996 period. Specifically, the Court        sentenced Syndial to pay the Italian Ministry of the        Environment compensation amounting to euro 1,833.5        million, plus legal interests that accrue from the filing        of the decision. Syndial and Eni technical-legal        consultants have considered the decision and the amount        of the compensation to be without factual and legal basis        and have concluded that a negative outcome of this        proceeding is unlikely. Particularly, Eni and its        subsidiary deem the amount of the environmental damage to        be absolutely ill-founded as the sentence has been        considered to lack sufficient elements to support such a        material amount of the liability charged to Eni and its        subsidiary with respect to the volume of pollutants        ascertained by the Italian Environmental Minister. As no        development of the proceeding has occurred since the        filing of the Court’s decision, management has        confirmed its stance of making no provision for this        proceeding in accordance with accounting principles.        Syndial will appeal against the ruling on Pieve Vergonte        site of the District Court of Turin as soon as possible.        Another administrative proceeding is ongoing regarding a        ministerial decree enacted by the Italian Ministry for        the Environment. The decree provides that Syndial        executes the following tasks: (i) the upgrading of a                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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|   |   | hydraulic barrier to protect        the site; and (ii) the design of a project for the        environmental remediation of Lake Maggiore. The        Administrative Court of Piemonte rejected Syndial’s        opposition against the outlined environmental measures        requested by the Ministry of the Environment. However,        the Court judged the prescriptions of the Ministry        regarding the remediation of the site to be plain        findings of an environmental enquiry to ascertain the        state of the lake. Syndial has filed an appeal against        the decision of the Court before an upper degree body,        also requesting suspension of the effectiveness of the        decision. The appeal has been put on hold considering        that a plan to ascertain the environmental status of the        site is going to be approved by all interested parties,        including the Ministry and local municipalities. |
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| **(v)** |   | **Action commenced by the        Municipality of Carrara for the remediation and        reestablishment of previous environmental conditions at        the Avenza site and payment of environmental damage.**        The Municipality of Carrara commenced an action before        the Court of Genova requesting Syndial SpA to remediate        and restore previous environmental conditions at the        Avenza site and the payment of certain environmental        damage which cannot be cleaned up as well as further        damages of various types (e.g. damage to the natural        beauty of this site). This request is related to an        accident that occurred in 1984, as a consequence of which        EniChem Agricoltura SpA (later merged into Syndial SpA),        at the time owner of the site, carried out safety and        remediation works. The Ministry of the Environment joined        the action and requested environmental damage payment        – from a minimum of euro 53.5 million to a maximum        of euro 93.3 million – to be broken down among the        various companies that ran the plant in the past. Syndial        summoned Rumianca SpA, Sir Finanziaria SpA and Sogemo        SpA, who ran the plant in previous years, in order to be        guaranteed. A report produced by an independent expert        appointed by the judge was filed with the Court. The        findings of this report quantify the residual        environmental damage at euro 15 million. With a sentence        of March 2008, the Court of Genova rejected all claims        made by the Municipality of Carrara and the Ministry of        environment. Both plaintiffs filed an appeal against this        decision in June 2008, requesting to all defendants        cumulative damage amounting to euro 189.9 million.        Syndial filed in the appeal hearing, disputing the        plaintiffs’ claims. |
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| **(vi)** |   | **Ministry for the        Environment Augusta harbor.** The Italian Ministry for        the Environment with various administrative acts ordered        companies running plants in the petrochemical site of        Priolo to perform safety and environmental remediation        works in the Augusta harbor. Companies involved include        Eni subsidiaries Polimeri Europa and Syndial. Pollution        has been detected in this area primarily due to a high        mercury concentration which is allegedly attributed to        the industrial activity of the Priolo petrochemical site.        Polimeri Europa opposed said administrative actions,        objecting in particular to the way in which remediation        works have been designed and information on concentration        of pollutants has been gathered. The Regional        Administrative Court of Catania with its decision of July        2007 annulled the decision made by the Service Conference        of the Ministry of the Environment concerning Priolo and        the Augusta harbor. The Ministry and the municipalities        of Augusta and Melilli filed a claim with an        Administrative Court of the Sicily Region which accepted        the claim. In January 2008 the Regional Court of Catania        accepted two further claims on this matter, remitting to        the European Union Court of Justice the correct        application of the debated community principle on the        matter of environmental responsibility. In June 2008 the        Ministry for the Environment and the Municipalities of        Melilli and Augusta filed and appeal against the decision        of the Regional Court of Catania with the Administrative        Justice Council. Syndial challenged the administrative        acts of December 20, 2007 and March 6, 2008, also        requesting the Court of Justice of the EU to decide on        the correct application of the debated community        principle. A review of the issue made by an independent        consultant has been filed showing evidence supporting the        thesis of the plaintiffs. The proceedings are still        pending before the Administrative Court of Lazio. |
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|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **ENI SPA** |
| **(i)**     |   | **Reorganization        procedure of the airlines companies Volare Group, Volare        Airlines and Air Europe.**On March 2009 Eni was        notified of a bankruptcy claw-back as part of a        reorganization procedure filed by the airlines companies        Volare Group, Volare Airlines and Air Europe which        commenced under the provisions of Ministry of Production        Activities, on November 30, 2004. The request regarded        the override of all the payments made by those entities        to Eni and its subsidiary Sofid in the year previous to        the insolvency declaration from November 30, 2003 to        November 29, 2004, for a total estimated amount of euro        46 million. |

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| **2. Other        judicial or arbitration proceedings** |
|---------------------------------------------------------|
|                                                    |   |   |
| **SYNDIAL SPA        (FORMER ENICHEM SPA)**             |
| **(i)**                                                 |   | **Serfactoring:        disposal of receivables.**In 1991, Agrifactoring SpA        commenced proceedings against Serfactoring SpA, a company        49% owned by Sofid SpA and which is controlled by Eni        SpA. The claim relates to an amount receivable of euro        182 million for fertilizer sales (plus interest and        compensation for inflation), originally owed by        Federconsorzi to EniChem Agricoltura SpA (later        Agricoltura SpA - in liquidation), and Terni Industrie        Chimiche SpA (merged into Agricoltura SpA - in        liquidation), that has been merged into EniChem SpA (now        Syndial SpA). Such receivables were transferred by        Agricoltura and Terni Industrie Chimiche to Serfactoring,        which appointed Agrifactoring as its agent to collect        payments. Agrifactoring guaranteed to pay the amount of        such receivables to Serfactoring, regardless of whether        or not it received payment on the due date. Following        payment by Agrifactoring to Serfactoring, Agrifactoring        was placed in liquidation and the liquidator of        Agrifactoring commenced proceedings in 1991 against        Serfactoring to recover such payments (equal to euro 182        million) made to Serfactoring based on the claim that the        foregoing guarantee became invalid when Federconsorzi was        itself placed in liquidation. Agricoltura and Terni        Industrie Chimiche brought counterclaims against        Agrifactoring (in liquidation) for damages amounting to        euro 97 million relating to acts carried out by        Agrifactoring SpA as agent. The amount of these        counterclaims has subsequently been reduced to euro 46        million following partial payment of the original        receivables by the liquidator of Federconsorzi and        various setoffs. These proceedings, which have all been        joined, were decided with a partial judgment, deposited        on February 24, 2004; the request of Agrifactoring has        been rejected and the company has been ordered to pay the        sum requested by Serfactoring and damages in favor of        Agricoltura, to be determined following the decision. A        final verdict on this issue is pending. Agrifactoring        appealed this partial decision, requesting in particular        the annulment of the first step judgment, the        reimbursement of euro 180 million from Serfactoring along        with the rejection of all its claims and the payment of        all proceeding expenses. On June 2008, the trial was        decided with a partial judgment that, reforming the        previous judgment of the Court of Rome, granted the        requests of Agrifactoring and condemned Serfactoring to        reimburse to Agrifactoring in liquidation the amount of        the receivables due from Federconsorzi and not collected        as Federconsorzi went bankrupt. The Court resolved to        appoint an independent accounting consultant to quantify        the amount paid by Agrifactoring to Serfactoring and        amounts paid by Federconsorzi to Agrifactoring. The        hearing has been rescheduled to February 2010 in order to        allow the Court to review the independent accounting        consultant’s advice. Syndial and Serfactoring have        appealed the sentence with the Supreme Court of Appeal.        Agrifactoring has presented a counter-recourse. Eni        accrued a provision with respect to this proceeding. |

|        |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
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| **ENI SPA** |
| **(i)**     |   | **Fintermica.**Fintermica        presented a claim against Eni concerning the management        of the Jacorossi joint venture with reference to an        alleged abuse of key roles played by Eni SpA in the joint        venture, thus damaging the other partner’s interest        and the alleged dilatory behavior of Syndial in selling        its interest in the joint venture to Fintermica. The        parties decided to commence arbitration on the matter.        The examining phase is ongoing and an independent        assessment of this matter is being executed. The Board of        Arbitrators issued a decision on November 26, 2008        condemning Eni and Syndial to compensate Fintermica for        the damages suffered amounting to euro 5 million        including monetary revaluation and accrued interest as of        April 3, 2001. |

|   |   |   |
|--------|--------|--------|

| **SNAMPROGETTI        SPA** |
|-----------------------------|
| **(i)**                     |   | **CEPAV Uno and CEPAV Due.**Eni        holds interests in the CEPAV Uno (50.36%) and CEPAV Due        (52%) consortia that in 1991 signed two contracts with        TAV SpA for the construction of two railway tracks for        high speed/high capacity trains from Milan to Bologna        (under construction) and from Milan to Verona (in the        design phase). With regard to the project for the        construction of the line from Milan to Bologna, an        Addendum to the contract between CEPAV Uno and TAV was        signed on June 27, 2003, redefining certain terms and        conditions of the contract. Subsequently, the CEPAV Uno        consortium requested a time extension for the completion        of works and a claim amounting to euro 800 million. CEPAV        Uno and TAV failed to solve this dispute amicably. CEPAV        Uno opened an arbitration procedure as provided for under        terms of the contract on April 27, 2006. With regard to        the project for the construction of a high-speed railway        from Milan to Verona, in December 2004, CEPAV Due        presented the final project, prepared in accordance with        Law No. 443/2001 on the basis of the preliminary project        approved by an Italian governmental authority (CIPE). As        concerns the arbitration procedure requested by CEPAV Due        against TAV for the recognition of costs incurred by the        Consortium in the 1991-2000 ten-year period plus suffered        damage, in January 2007, the arbitration committee        determined the Consortium’s right to recover the        costs incurred in connection with the design activities        performed. A technical independent survey is underway to        assess the amount of compensation |

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|                                                                                                                                 |   | to be awarded to the Consortium as        requested by the arbitration committee. TAV appealed the        arbitration committee’s determination. In April        2007, the Consortium filed with the second instance court        of Rome an appeal against Law Decree No. 7 of December        31, 2007, that revoked the concessions awarded to TAV        resulting in the annulment of arrangements signed between        TAV and the Consortium to build the high-speed railway        section from Milan to Verona. The European Court of        Justice was requested to judge on this matter. In the        meantime, TAV decided to not request the reimbursement of        advances paid to the Consortium. Subsequently, Law        133/2008 re-established the concessions awarded to TAV        resulting in the continuation of the arrangements between        the consortium CEPAV Due and a new entity in charge of        managing the Italian railway system.                                                                                                                                                                                                                         |
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| **3. Antitrust,        EU Proceedings, Actions of the Authority for Electricity        and Gas and of Other Regulatory Authorities** |
|                                                                                                                                 |
| **3.1 Antitrust**                                                                                                                    |
|                                                                                                                                 |
| **ENI SpA**                                                                                                                          |
| **(i)**                                                                                                                              |   | **Abuse of dominant        position of Snam alleged by the Italian Antitrust        Authority.** In March 1999, the Italian Antitrust        Authority concluded its investigation started in 1997        and: (i) found that Snam SpA (merged in Eni SpA in 2002)        abused its dominant position in the market for the        transportation and primary distribution of natural gas        relating to the transportation and distribution tariffs        applied to third parties and the access of third parties        to infrastructure; (ii) fined Snam for euro 2 million;        and (iii) ordered a review of the practices relating to        such abuses. Snam believes it has complied with existing        legislation and appealed the decision with the Regional        Administrative Court of Lazio requesting its suspension.        On May 26, 1999, stating that these decisions are against        Law No. 9/1991 and the European Directive 98/30/EC, this        Court granted the suspension of the decision. The        Authority did not appeal this decision. The decision on        the merit of this dispute is still pending before the        same Administrative Court. |

| **(ii)**  |   | **Formal assessment        commenced by the Commission of the European Communities        for the evaluation of alleged participation to activities        limiting competition in the field of paraffin.** On        April 28, 2005, the Commission of the European        Communities commenced a formal assessment to evaluate the        alleged participation of Eni and its subsidiaries in        activities limiting competition in the field of paraffin.        The alleged violation of competition is for: (i) the        determination of and increase in prices; (ii) the        subdivision of customers; and (iii) exchange of trade        secrets, such as production capacity and sales volumes.        After, the Commission requested information on Eni’s        activities in the field of paraffin and certain        documentation acquired by the Commission during an        inspection. Eni filed the requested information. On        October 2008, the Commission of the European Communities        issued the final decision on the matter condemning Eni to        the payment of a sanction amounting to euro 29,120,000.        Eni has filed for recourse against this decision that is        fully covered by the accrued risk provision.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
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| **(iii)** |   | **Ascertainment by the        European Commission of the level of competition in the        European natural gas market.**As part of its        activities to ascertain the level of competition in the        European natural gas market, with Decision No. C        (2006)1920/1 of May 5, 2006, the European Commission        informed Eni that the Group companies were subject to an        inquiry under Article 20, paragraph 4 of the European        Regulation No. 1/2003 of the Council in order to verify        the possible existence of any business conducts breaching        European rules in terms of competition and intended to        prevent access to the Italian natural gas wholesale        market and to subdivide the market among few operators in        the activity of supply and transport of natural gas.        Similar actions have been performed by the Commission        also against the main operators in natural gas in        Germany, France, Austria and Belgium. In April 2007, the        European Commission made public its decision to start a        further stage of inquiry, as the elements collected        supported its suspicion that Eni adopted behaviors        leading to "capacity hoarding and strategic, in its        view, underinvestment in the transmission system leading        to the foreclosure of competitors and harm for        competition and customers in one or more supply markets        in Italy". On March 9, 2009 Eni received a Statement        of Objections related to a proceeding under Article No.        82 of the EU Treaty and Article No. 54 of the SEE        agreement with reference to an alleged unjustifiable        refusal of access to the TAG and TENP/Transitgas gas        pipelines, that are interconnected with the Italian gas        transport system through actions intended to        "capacity hoarding, capacity degradation and        strategic limitation of investment" with the effect        of "hindering the development of a real competition        in the downstream market and [...] harming the        consumers". The European Commission envisages the        possible imposition of a fine and of structural remedies.        The Company is currently assessing the reasoning        underlying the Commission’s objections in order to        ascertain whether the challenged actions are supported by        evidence and may be qualified as infringement of the        European competition rules. The Company will file its        defensive memories within the proceeding. In addition,        and following the aforementioned assessment, the Company        may consider whether to voluntarily file a set of        remedies to settle the proceeding as provided |

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|   |   | by Article No. 9 of the        European Regulation No. 1/2003. Taking into account the        numerous elements to be considered in determining the        amount of the fine, the complex checks to carry out with        respect to the Statement of Objections, and also the        circumstance that the Commission’s approval of the        possible remedies, presented by Eni pursuant to European        Regulation No. 1/2003, would settle the matter without        imposing a fine, management believes that the liability        is contingent upon the future events described and cannot        be measured with reasonable reliability. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(iv)** |   | **TTPC.**In April 2006,        Eni filed a claim before the Regional Administrative        Court of Lazio against the decision of the Italian        Antitrust Authority of February 15, 2006 stating that        Eni’s behavior pertaining to implementations of        plans for the upgrading of the TTPC pipeline for        importing natural gas from Algeria represented an abuse        of dominant position under Article 82 of the European        Treaty and fined Eni. The initial fine amounted to euro        390 million and was reduced to euro 290 million in        consideration of Eni’s commitment to perform actions        favoring competition including the upgrade of the        gasline. Eni accrued a provision with respect to this        proceeding. With a decision filed on November 29, 2006,        the Regional Administrative Court of Lazio partially        accepted Eni’s claim, annulling such part of the        Authority’s decision where the fine was quantified.        Eni is waiting for the filing of the motivations of the        Court decision to ascertain the impact of said decision.        Pending this development, the payment of the fine has        been voluntarily suspended. In 2007, the Regional        Administrative Court of Lazio accepted in part Eni’s        claim and cancelled the quantification of the fine based        on the Antitrust Authority’s inadequate evaluation        of the circumstances presented by Eni. Eni filed an        appeal with the Council of State, as did the Antitrust        Authority and TTPC. Pending the final outcome, Eni awaits        for the determination of the amount of the fine to be        paid. |
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| **(v)**                                        |   | **Italian natural gas market.**On        May 7, 2009, the Italian Antitrust Authority started a        preliminary investigation against the Company and its        fully-owned subsidiary Italgas and other operators        engaging in the gas retail market in Italy. The        investigation targets an alleged abuse of dominant        position in the gas retail market in Italy associated        with commercial practices intended to make it difficult        for retail clients to change the supplier and the        retrieval of data on volumes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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| **POLIMERI        EUROPA SPA AND SYNDIAL SPA** |
| **(i)**                                        |   | **Inquiries in relation to        alleged anti-competitive agreements in the area of        elastomers.** In December 2002, inquiries were        commenced concerning alleged anti-competitive agreements        in the field of elastomers. These inquiries were        commenced concurrently by European and U.S. authorities.        At present, proceedings are pending before the European        Commission regarding the CR and NBR products. In March        2007, the Commission sent to Eni, Polimeri Europa and        Syndial a statement of objections, thus opening the        second phase of this proceeding. In December 2007, the        European Commission dismissed Syndial’s position on        CR and imposed on Eni and Polimeri a fine amounting to        euro 132.16 million. The two companies have filed an        appeal with the EU Court of First Instance against this        decision and, at the same time, paid the fine in March        2008. Investigations relating to other elastomers        products resulted in the ascertainment of Eni having        infringed European competition laws in the field of        synthetic rubber production (BR and ESBR). On November        29, 2006, the Commission fined Eni and its subsidiary        Polimeri Europa for an amount of euro 272.25 million. Eni        and its subsidiary filed claims against this decision        before the European Court of First Instance in February        2007. The Commission filed a counter appeal. Pending the        outcome, Polimeri Europa presented a bank guarantee for        euro 200 million and paid the residual amount of the        fine. In August 2007, Eni submitted a request for a        negative ascertainment with the Court of Milan aimed at        proving the non-existence of alleged damages suffered by        tire manufacturers. With regard to NBR, an inquiry is        underway also in the U.S., where class actions have also        been commenced. On the federal level, the class action        was abandoned by the plaintiffs. However, the federal        judge has yet to acknowledge this abandonment. With        regard to other products under investigation in the U.S.,        settlements were reached with both relevant U.S.        antitrust authorities and the plaintiffs acting through a        class action. Eni recorded a provision for these matters. |

 

**3.2 Regulation**

**TOSCANA ENERGIA CLIENTI SPA**Eni’s subsidiary Toscana Energia Clienti SpA started anaction against a customer regarding alleged lack of measurementof gas consumption due to inability to access a measurementfacility at the customer’s site, also in connection with theapplication of Resolution No. 229/2001 of the Italian Authorityfor Electricity and Gas. This customer has annual consumption inexcess of 5,000 CM. The defendant has filed a counter-claim inrelation to this proceeding. In the hearing of November 12, 2008the judge resolved to partially accept the Eni’s subsidiaryreasons and to limit compensation to be paid to the defendant toonly euro 1,475 with interests amounting to euro 90. The sum waspaid while the defendant is evaluating the opportunity to appealthe sentence.

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| **DISTRIBUIDORA        DE GAS CUYANA SA** |
|-------------------------------------------|
| **(i)**                                   |   | **Formal investigation of        the agency entrusted with the regulations for the natural        gas market in Argentina.** Enargas started a formal        investigation on some operators, among them Distribuidora        de Gas Cuyana SA, a company controlled by Eni. Enargas        stated that the company improperly applied conversion        factors to volumes of natural gas invoiced to customers        and requested the company to apply the conversion factors        imposed by local regulations from the date of the default        notification (March 31, 2004) without prejudice to any        damage payment and fines that may be decided after        closing the investigation. In April 2004 the company        filed a defensive memorandum. On April 28, 2006, the        company formally requested the acquisition of documents        from Enargas in order to have access to the documents on        which the allegations are based. |

 

**4. Tax Proceedings**

**ENI SPADispute for the omitted payment of the municipal tax related tooil platforms located in territorial waters in the Adriatic Sea.**With a formal assessment presented by the Municipality of Pineto(Teramo) in December 1999, Eni SpA has been accused of not havingpaid a municipal tax on real estate for the period from 1993 to1998 on four oil platforms located in the Adriatic Sea whichconstitute municipal waters in front of the coast of Pineto. Eniwas requested to pay a total of approximately euro 17 millionincluding interest and a fine. Eni filed a claim against thisrequest stating that the sea where the platforms are located isnot part of the municipal territory and the tax application asrequested by the municipality lacked objective fundamentals. Theclaim has been accepted in the first two degrees of judgment atthe Provincial and Regional Tax Commissions. However, the Courtoverturned both judgments, declaring that a municipality canconsider requesting a tax on real estate in the sea facing itsterritory and with the decision of February 2005 sent theproceeding to another section of the Regional Tax Commission inorder to judge on the matters of the proceeding. This commissionnominated a Board of Consultants, in order to make all theaccounting/technical verifications necessary for the judgment. OnDecember 28, 2005, the Municipality of Pineto presented the samerequest for the same platforms for the years 1999 to 2004. Thetotal amount requested from Eni is euro 24 million includinginterest and penalties. Eni filed a claim against this requestwhich was accepted by the first degree judge with a decision ofDecember 4, 2007. Similar formal assessments related to Eni oiland gas offshore platforms were presented by the Municipalitiesof Falconara Marittima and Pedaso. The total amounts of thoseclaims were approximately euro 6 million. The company filedappeal or is planning to appeal.

**AGIP KARACHAGANAK BVClaims concerning unpaid taxes and relevant payment of interestand penalties.** In July 2004, relevant Kazakh Authoritiesinformed Agip Karachaganak BV and Agip Karachaganak PetroleumOperating Co BV, shareholder and operator of the Karachaganakcontract, respectively, on the final outcome of 2000 to 2003 taxaudits. Both companies counterclaimed against the assessment anda preliminary agreement was reached on November 18, 2004. Finalassessments have now been issued by the Kazakh Authorities, andpayment has been made. The final amount assessed and paid was $39million net to Eni; this figure included taxes and interest. Thecompanies continue to dispute the assessments and reserve theright to challenge their findings further.

 

**5. Court Inquiries**

| **(i)** |   | **EniPower.** In June        2004, the Milan Public Prosecutor commenced inquiries        into contracts awarded by Eni’s subsidiary EniPower        and on supplies from other companies to EniPower. These        inquiries were widely covered by the media. It emerged        that illicit payments were made by EniPower suppliers to        a manager of EniPower who was immediately dismissed. The        Court presented EniPower (commissioning entity) and        Snamprogetti (contractor of engineering and procurement        services) with notices of process in accordance with        existing laws regulating the administrative        responsibility of companies (Legislative Decree No.        231/2001). In its meeting of August 10, 2004, Eni’s        Board of Directors examined the aforementioned situation        and Eni’s CEO approved the creation of a task force        in charge of verifying the compliance with Group        procedures regarding the terms and conditions for the        signing of supply contracts by EniPower and Snamprogetti        and the subsequent execution of works. The Board also |
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|   |   | advised divisions and        departments of Eni to cooperate fully in every respect        with the Court. From the inquiries performed, no default        in the organization emerged, nor deficiency in internal        control systems. External experts have performed        inquiries with regard to certain specific aspects. In        accordance with its transparency and firmness guidelines,        Eni will take the necessary steps in acting as plaintiff        in the expected legal action in order to recover any        damage that could have been caused to Eni by the illicit        behavior of its suppliers and of their and Eni employees.        In the meantime, preliminary investigations have found        that both EniPower and Snamprogetti are not to be        considered defendants in accordance with existing laws        regulating the administrative responsibility of companies        (Legislative Decree No. 231/2001). In August 2007, Eni        was notified that the Public Prosecutor requested the        dismissal of EniPower SpA and Snamprogetti SpA, while the        proceeding continues against former employees of these        companies and employees and managers of the suppliers        under the provisions of Legislative Decree No. 231/2001.        Eni SpA, EniPower and Snamprogetti presented themselves        as plaintiffs. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **(ii)**  |   | **Trading.**An        investigation is pending regarding two former Eni        managers who were allegedly bribed by third parties to        favor the closing of certain transactions with two oil        product trading companies. Within such investigation, on        March 10, 2005, the public prosecutor of Rome notified        Eni of two judicial measures for the seizure of        documentation concerning Eni’s transactions with the        said companies. Eni is acting as plaintiff in this        proceeding. The judge for preliminary hearings rejected        most of the dismissal request, forcing the public        prosecutor to continue with the criminal case.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|-----------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(iii)** |   | **TSKJ Consortium        Investigations of the SEC and other Authorities.**The        U.S. Securities and Exchange Commission (SEC), the U.S.        Department of Justice (DoJ), and other authorities are        investigating alleged improper payments made by the TSKJ        Consortium to certain Nigerian public officials in        relation to the construction of natural gas liquefaction        facilities at Bonny Island in Nigeria. Snamprogetti        Netherlands BV had a 25% participation in the TSKJ        companies, with the remaining participations held by        subsidiaries of Halliburton/KBR, Technip, and JGC.        Snamprogetti SpA, the holding company of Snamprogetti        Netherlands BV, was a wholly owned subsidiary of Eni        until February 2006, when an agreement was entered into        for the sale of Snamprogetti to Saipem SpA and        Snamprogetti was merged into Saipem as of October 1,        2008. Eni holds a 43% participation in Saipem. In        connection with the sale of Snamprogetti to Saipem, Eni        agreed to indemnify Saipem for a variety of matters,        including potential losses resulting from the        investigations into the TSKJ matter. In February 2009,        KBR and its former parent company, Halliburton, announced        that they had reached a settlement with the SEC and DoJ        with respect to the TSKJ matter as well as other        unspecified matters. In connection with the settlement,        KBR pleaded guilty to Foreign Corrupt Practices Act        (FCPA) charges stemming from the TSKJ matter. KBR and        Halliburton also agreed to pay a substantial fine and        entered into civil settlements with the SEC. We        understand that the DoJ and the SEC believe that        representatives of the other members of the TSKJ        Consortium were involved in the conduct that gave rise to        the FCPA charges against KBR. Since June 2004, Eni and        Saipem/Snamprogetti have been in discussions with, and        have provided information in response to requests by,        various regulators, including the SEC, the DoJ and the        Public Prosecutor’s office of Milan, in connection        with the investigations. |

| **(iv)** |   | **Gas Metering.**On May        28, 2007, a seizure order (in respect to certain        documentation) was served upon Eni and other Group        companies as part of a proceeding brought by the Public        Prosecutor at the Courts of Milan. The order was also        served upon five top managers of the Group companies in        addition to third party companies and their top managers.        The investigation alleges behavior which breaches Italian        criminal law, starting from 2003, regarding the use of        instruments for measuring gas, the related payments of        excise duties and the billing of clients as well as        relations with the Supervisory Authorities. The        allegation regards, interalia, the offense contemplated        by Legislative Decree of June 8, 2001, No. 231, which        establishes the liability of the legal entity for crimes        committed by its employee in the interests of such legal        entity, or to its advantage. Accordingly, notice of the        commencement of investigations was served upon Eni Group        companies (Eni, Snam Rete Gas and Italgas) as well as        third party companies. The Group companies are        cooperating with the Supervising Authorities in the        investigations. |
|----------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **(v)**  |   | **Agip KCO NV.** In        November 2007, the public prosecutor of Kazakhstan        informed Agip KCO of the start of an inquiry for an        alleged fraud in the award of a contract to the Overseas        International Constructors GmbH in 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

 

**6. Settled Proceedings**

**ENI SPAInquiry of the Italian Authority for Electricity and Gasregarding information to clients about the right to pay amountsdue for natural gas sales in installments.** With Decision No.228/2007, the Italian Authority for Electricity and Gas commenceda formal inquiry regarding information to clients about the rightto pay amounts due 

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for the natural gas sales in installments in order to possiblyput a stop to the alleged infringement of the clients’rights and to impose a fine. In April 2008, the Authorityconcluded its inquiry and fined the Company by euro 3.2 million.

**SYNDIAL SPA (FORMER ENICHEM SPA)Criminal action commenced by the public prosecutor of Brindisi.**In 2000, the public prosecutor of Brindisi commenced a criminalaction against 68 persons who are employees or former employeesof companies that owned and managed plants for the manufacture ofdichloroethane, vinyl chloride monomer and vinyl polychloridefrom the early 1960s to date, some of which were managed byEniChem from 1983 to 1993. At the end of the preliminaryinvestigation the public prosecutor asked for the dismissal ofthe case in respect of the employees and the managers of EniChem.Plaintiffs presented oppositions, but the prosecutor confirmedthe request to dismiss the case with a decision of June 2008, thepublic prosecutor dismissed the accusation as unfounded andrequested the closing of the proceeding.

**AGIP KCO NV**In December 2007 the Kazakh tax authority filed a notice oftax assessment for fiscal years 2004 to 2006 to Agip KCO,operator of the Kashagan contract. Allegedly unpaid taxes,including interest and penalties, amounted to approximately U.S.$235 million net to Eni and related to unpaid amounts andinapplicable deductions on value added tax and the default inapplying certain withholding taxes on payments to foreignsuppliers. The same notice also informed the companies party tothe Kashagan contract that further assessments were pending onnon-deductible costs for U.S. $188 million net Eni and highertaxable income on Kazakh branches for U.S. $48 million net toEni. The further assessments were subsequently issued, thecompany filed an appeal and a settlement was reached in October2008 with the following outcome: the unpaid taxes net to Eni wereagreed at U.S. $24 million (U.S. $235 million assessed). Anadjustment to deductible costs was agreed at U.S. $38 million netto Eni (U.S. $188 million assessed) and it was further agreedthat there would be no income taxable on Kazakh branches (U.S.$48 million assessed).

**Other risks and commitments**Parent company guarantees amounted to euro 11,110 million(euro 4,911 million at December 31, 2006) were issued inconnection with certain contractual commitments for hydrocarbonexploration and production activities, quantified on the basis ofthe capital expenditures to be incurred. The increase of euro6,199 million primarily related to commitments that Agip CaspianSea BV in Kazakhstan had entered into for euro 5,605 million.

Under the convention signed on October 15, 1991 by Treno AltaVelocità - TAV SpA and CEPAV (Consorzio Eni per l’AltaVelocità) Due, Eni committed to guarantee the execution ofdesign and construction of the works assigned to the CEPAVConsortium (to which it is party) and guaranteed to TAV thecorrect and timely execution of all obligations indicated in theconvention in a subsequent integration deed and in any furtheraddendum or change or integration to the same. The regulation ofCEPAV Due contains the same obligations and guarantees containedin the CEPAV Uno Agreement.

A commitment entered into by Eni USA Gas Marketing Llc onbehalf of Cameron LNG for fulfilling certain obligations inconnection with a regasification contract signed on August 1,2005. This commitment is subject to a suspension clause and willcome into force when the regasification service starts in aperiod included between October 1, 2008 and June 30, 2009 for anestimated total consideration of euro 226 million.

A commitment entered into by Eni USA Gas Marketing Llc onbehalf of Gulf LNG Energy for the acquisition of unusedregasification capacity (5.78 BCM/y) over a twenty-year period(2011-2031) for an estimated total consideration as high as$1,400 million equal to euro 951 million.

A commitment entered into by Eni USA Gas Marketing Llc onbehalf of Angola LNG Supply Service for the acquisition ofregasified gas at the Pascagoula plant in the United States thatwill come into force when the regasification service starts in aperiod included between 2011-2031.

Eni is liable for certain non-quantifiable risks related tocontractual assurances given to acquirers of certain ofEni’s assets, including businesses and investments, againstcertain contingent liabilities deriving from tax, social securitycontributions, environmental issues and other matters applicableto periods during which such assets were 

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operated by Eni. Eni believes such matters will not have amaterial adverse effect on the Company’s results ofoperations and liquidity.

**Assets under concession arrangements**

Eni operates under concession arrangements mainly in theExploration & Production segment and in some activities ofthe Gas & Power segment and the Refining & Marketingsegment. In the Exploration & Production segment contractualclauses governing mineral concessions, licenses and explorationpermits regulate the access of Eni to hydrocarbon reserves. Suchclauses can differ in each country. In particular, mineralconcessions, licenses and permits are granted by the legal ownersand, generally, entered into with government entities, State oilcompanies and, in some legal contexts, private owners. As acompensation for mineral concessions, Eni pays royalties andtaxes in accordance with local tax legislation. Eni sustains allthe operation risks and costs related to the production anddevelopment activities and it is entitled to the productionsrealized. In Product Sharing Agreement and in buy-back contracts,realized productions are defined on the basis of contractualagreements drawn up with State oil companies which hold theconcessions. Such contractual agreements regulate the recovery ofcosts incurred for the exploration, development and operatingactivities (cost oil) and give entitlement to the own portion ofthe realized productions (profit oil). With reference to naturalgas storage in Italy, the activity is conducted on the basis ofconcessions with a duration that does not exceed a twenty yearduration and it is granted by the Ministry of ProductiveActivities to persons that are consistent with legislationrequirements and that can demonstrate to be able to conduct astorage program that meets the public interest in accordance withthe laws. In the Gas & Power segment the gas distributionactivity is primarily conducted on the basis of concessionsgranted by local public entities. At the expiry date of theconcession, compensation is paid, defined by using criteria ofbusiness appraisal, to the outgoing operator following the saleof its own gas distribution network. Service tariffs fordistribution are defined on the basis of a method established bythe Authority for Electricity and Gas. Legislative Decree No.164/2000 provides the grant of distribution service exclusivelyby tender, with a maximum length of 12 years.

In the Refining & Marketing segment several servicestations and other auxiliary assets of the distribution serviceare located in the motorway areas and they are granted by themotorway concession operators following a public tender for thesub-concession of the supplying of oil products distributionservice and other auxiliary services. Such assets are amortizedover the length of the concession (generally, 5 years for Italy).In exchange of the granting of the services described above, Eniprovides to the motorway companies fixed and variable royaltieson the basis of quantities sold. At the end of the concessionperiod, all non-removable assets are transferred to the grantorof the concession.

**Environmental regulations**

Risks associated with the footprint of Eni’s activitieson the environment, health and safety are described in the risksection above, under the paragraph "Operational risks".Regarding the environmental risk, management does not currentlyexpect any material adverse effect upon Eni’s consolidatedfinancial statements, taking account of ongoing remedial actions,existing insurance policies to cover environmental risks and theenvironmental risk provision accrued in the consolidatedfinancial statements. However, management believes that it ispossible that Eni may incur material losses and liabilities infuture years in connection with environmental matters due to: (i)the possibility of as yet unknown contamination; (ii) the resultsof the ongoing surveys and the other possible effects ofstatements required by Decree No. 471/1999 of the Ministry ofEnvironment; (iii) new developments in environmental regulation;(iv) the effect of possible technological changes relating tofuture remediation; and (v) the possibility of litigation and thedifficulty of determining Eni’s liability, if any, asagainst other potentially responsible parties with respect tosuch litigation and the possible insurance recoveries.

**Emission trading**

Legislative Decree No. 216 of April 4, 2006 implemented theEmission Trading Directive 2003/87/EC concerning greenhouse gasemissions and Directive 2004/101/EC concerning the use of carboncredits deriving from projects for the reduction of emissionsbased on the flexible mechanisms devised by the Kyoto Protocol.This European emission trading scheme has been in force sinceJanuary 1, 2005, and on this matter, on November 27, 2008, theNational Committee for Emissions Trading Scheme (Ministry ofEnvironment-Mse) published the Resolution 20/2008 definingemission permits for the 2008-2012 period. In particular, Eni wasassigned permits corresponding to 127.2 mmtonnes of carbondioxide (approximately 25 mmtonnes/y) in addition toapproximately 7.4 million of permits expected to be assigned withrespect to new plants in the five-year period 2008-2012.Emissions of carbon dioxide from Eni’s plants were lowerthan permits assigned in 2008. Emission permits for 25.9 

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million tonnes were assigned, against emissionsof carbon dioxide of approximately 25.3 million tonnes, resultingin a surplus of 0.6 million tonnes.

**30 Revenues**The following is a summary of the main components of"Revenues". For more information about changes inrevenues, see "Item 5 – Operating and Financial Reviewand Prospects".

Net sales from operations were as follows:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Net sales from operations                  |   | 85,957     |   | 87,103     |   | 107,843     |
|--------------------------------------------|--------|------------|--------|------------|--------|-------------|
| Change in        contract work in progress |   | 148        |   | 153        |   | 305         |
|                                       |   | **86,105** |   | **87,256** |   | **108,148** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Net sales from operations were net of thefollowing items:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Excise taxes                                                                                |   | 13,762     |   | 13,292     |   | 13,142     |
|---------------------------------------------------------------------------------------------|--------|------------|--------|------------|--------|------------|
| Exchanges of        oil sales (excluding excise taxes)                                      |   | 2,750      |   | 2,728      |   | 2,694      |
| Services billed to joint venture partners                                                   |   | 1,385      |   | 1,554      |   | 2,081      |
| Sales to        service station managers for sales billed to holders of        credit cards |   | 1,453      |   | 1,480      |   | 1,700      |
| Exchanges of other products                                                                 |   | 127        |   | 121        |   | 83         |
|                                                                                        |   | **19,477** |   | **19,175** |   | **19,700** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Net sales from operations by business segment and geographicarea of destination are presented in Note 36 - Information byindustry segment and geographic financial information.

**Other income and revenues**Other income and revenues were as follows:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Gains on price adjustments under        overlifting/underlifting transactions |   | 30      |   | 79      |   | 180     |
|-------------------------------------------------------------------------------|--------|---------|--------|---------|--------|---------|
| Lease and        rental income                                                |   | 98      |   | 95      |   | 98      |
| Gains from sale of assets                                                     |   | 100     |   | 66      |   | 48      |
| Contract        penalties and other trade revenues                            |   | 61      |   | 181     |   | 23      |
| Compensation for damages                                                      |   | 40      |   | 87      |   | 15      |
| Other        proceeds (*)                                                     |   | 454     |   | 319     |   | 356     |
|                                                                          |   | **783** |   | **827** |   | **720** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

|   |   |                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------|
| (*)    |   | Each        individual amount included herein does not exceed euro 50        million. |

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**31 Operating expenses**The following is a summary of the main components of"Operating expenses". For more information aboutchanges in operating expenses, see "Item 5 – Operatingand Financial Review and Prospects". 

**Purchases, services and other**Purchases, services and other included the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Production costs - raw, ancillary and consumable        materials and goods                        |   | 44,661     |   |   | 44,884     |   |   | 58,712     |   |
|----------------------------------------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
| Production        costs - services                                                                 |   | 10,015     |   |   | 10,828     |   |   | 13,355     |   |
| Operating leases and other                                                                         |   | 1,903      |   |   | 2,276      |   |   | 2,558      |   |
| Net        provisions for contingencies                                                            |   | 767        |   |   | 591        |   |   | 900        |   |
| Other expenses                                                                                     |   | 1,089      |   |   | 1,095      |   |   | 1,652      |   |
|                                                                                               |   | **58,435** |   |   | **59,674** |   |   | **77,177** |   |
| less:                                                                                              |   |       |   |   |       |   |   |       |   |
| -        capitalized direct costs associated with self-constructed        assets - tangible assets |   | (783       | )      |   | (1,325     | )      |   | (645       | )      |
| - capitalized direct costs associated with        self-constructed assets - intangible assets      |   | (162       | )      |   | (170       | )      |   | (124       | )      |
|                                                                                               |   | **57,490** |   |   | **58,179** |   |   | **76,408** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Production costs-services included brokerage feesrelated to Engineering & Construction segment for euro 155million (euro 39 million and euro 37 million in 2006 and 2007,respectively).

Costs incurred in connection with research anddevelopment activity recognized in profit and loss amounted toeuro 216 million (euro 219 million and euro 189 million in 2006and 2007, respectively) as they do not meet the requirements tobe capitalized.

The item "Operating leases and other"included operating leases for euro 957 million (euro 860 millionand euro 1,081 million in 2006 and 2007, respectively) androyalties on hydrocarbons extracted for euro 871 million (euro823 million and euro 772 million in 2006 and 2007, respectively).Future minimum lease payments expected to be paid undernon-cancelable operating leases were as follows:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| To be paid within 1 year     |   | 594       |   | 588       |   | 618       |
|------------------------------|--------|-----------|--------|-----------|--------|-----------|
| Between 2 and        5 years |   | 1,474     |   | 1,401     |   | 2,585     |
| Beyond 5 years               |   | 762       |   | 942       |   | 1,084     |
|                         |   | **2,830** |   | **2,931** |   | **4,287** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Operating leases primarily concerned assets for drillingactivities, time charter and long-term rentals of vessels, lands,service stations and office buildings. Such leases did notinclude renewal options. There are no significant restrictionsprovided by these operating leases which limit the ability of Enito pay dividends, use assets or to take on new borrowings.

Increase of provisions for contingencies net of reversal ofunutilized provisions amounted to euro 874 million (euro 767million and euro 591 million in 2006 and 2007, respectively) andmainly regarded environmental risks for euro 360 million (euro248 million and euro 327 million in 2006 and 2007, respectively),marketing initiatives awarding prizes to clients for euro 73million (euro 44 million and euro 59 million in 2006 and 2007,respectively) and legal or other proceedings for euro 55 million(euro 149 million and euro 79 million in 2006 and 2007,respectively). More information is included in Note 22 -Provisions for contingencies. 

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**Payroll and related costs**Payroll and related costs were as follows:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Wages and salaries                                                                                   |   | 2,630     |   |   | 2,906     |   |   | 3,204     |   |
|------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| Social        security contributions                                                                 |   | 691       |   |   | 690       |   |   | 694       |   |
| Cost related to defined benefits plans and        defined contributions plans                        |   | 230       |   |   | 161       |   |   | 107       |   |
| Other        costs                                                                                   |   | 305       |   |   | 275       |   |   | 282       |   |
|                                                                                                 |   | **3,856** |   |   | **4,032** |   |   | **4,287** |   |
| less:                                                                                                |   |      |   |   |      |   |   |      |   |
| - capitalized direct costs associated with        self-constructed assets - tangible assets          |   | (99       | )      |   | (109      | )      |   | (148      | )      |
| -        capitalized direct costs associated with self-constructed        assets - intangible assets |   | (107      | )      |   | (123      | )      |   | (135      | )      |
|                                                                                                 |   | **3,650** |   |   | **3,800** |   |   | **4,004** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

**Average number of employees**The average number and break-down of employees by category ofEni’s subsidiaries were as follows:

| (number) |   | **2006** |   | **2007** |   | **2008** |
|----------|--------|----------|--------|----------|--------|----------|
|     |   |          |   |          |   |          |

| Senior managers        |   | 1,676      |   | 1,594      |   | 1,621      |
|------------------------|--------|------------|--------|------------|--------|------------|
| Junior        managers |   | 11,142     |   | 11,816     |   | 12,597     |
| Employees              |   | 34,671     |   | 35,725     |   | 36,766     |
| Workers                |   | 25,426     |   | 25,582     |   | 26,387     |
|                   |   | **72,915** |   | **74,717** |   | **77,371** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

The average number of employees was calculated as the averagebetween the number of employees at the beginning and end of theperiod. The average number of senior managers included managersemployed and operating in foreign countries, whose position iscomparable to a senior manager status.

**Stock-based compensation**

*Stock grant*In 2008 residual rights for stock grant were exercised bymanagers of Eni SpA and its subsidiaries as defined in Article2359 of the Civil Code as eligible to this compensation plan.Therefore at the balance sheet date there are no residual rightsgranted. Changes in the 2006, 2007 and 2008 stock grant plansconsisted of the following:

|   |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|----------|--------|----------|--------|----------|
|   |   |          |   |          |   |          |

|   |   | Number of shares |   | Market price (a) (euro) |   | Number of shares |   | Market price (a) (euro) |   | Number of shares |   | Market price (a) (euro) |
|--------|--------|------------------|--------|-------------------------|--------|------------------|--------|-------------------------|--------|------------------|--------|-------------------------|
|   |   |                  |   |                         |   |                  |   |                         |   |                  |   |                         |

| **Stock grants outstanding as of January 1**   |   | **3,127,200** |   |   | **23.460** |   | **1,873,600** |   |   | **25.520** |   | **902,800** |   |   | **25.120** |
|------------------------------------------------|--------|---------------|--------|--------|------------|--------|---------------|--------|--------|------------|--------|-------------|--------|--------|------------|
| New rights        granted                      |   |          |   |   |       |   |          |   |   |       |   |        |   |   |       |
| Rights exercised in the period                 |   | (1,236,400    | )      |   | 23.933     |   | (966,000      | )      |   | 24.652     |   | (893,400    | )      |   | 21.832     |
| Rights        cancelled in the period          |   | (17,200       | )      |   | 23.338     |   | (4,800        | )      |   | 26.972     |   | (9,400      | )      |   | 22.683     |
| **Stock grants outstanding as of December 31** |   | **1,873,600** |   |   | **25.520** |   | **902,800**   |   |   | **25.120** |   |        |   |   |       |
| **of        which exercisable at December 31** |   | **156,700**   |   |   | **25.520** |   | **68,100**    |   |   | **25.120** |   |        |   |   |       |

|   |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)          |    | Market price        relating to new rights granted, rights exercised in the        period and rights cancelled in the period corresponds to        the average market value (arithmetic average of official        prices recorded on Mercato Telematico Azionario in the        month preceding: (i) the date of the Board of Directors        resolution regarding the stock grant assignment; (ii) the        date on which the emission/transfer of the shares granted        were recorded in the grantee’s securities account;        and (iii) the date of the unilateral termination of        employment for rights cancelled), weighted with the        number of shares. Market price of stock at the beginning        and end of the year is the price recorded at December 31. |

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*Stock option*Stock options plans are designed for managers of Eni SpA and itssubsidiaries as defined in Article 2359 of the Civil Code, whoare directly responsible for corporate results or for strategicpositions, making them participate to an effective incentiveplan.

*2002-2004 and 2005 plans*Stock options plans provide the right for the assignee topurchase treasury shares with a 1 to 1 ratio after the end of thethird year from the date of the grant (vesting period) and for amaximum period of five years. The strike price was determined tobe the arithmetic average of official prices registered on theMercato Telematico Azionario in the month preceding the grantdate or, from 2003 onwards, the average carrying amount oftreasury shares as of the day preceding the assignment, ifgreater.

*2006-2008 plan*The 2006-2008 stock option plan has introduced a performancecondition for the exercise of the options. At the end of eachthree-year period (vesting period) from the assignment, the Boardof Directors determines the percentage of exercisable options,from 0 to 100, in relation to the Total Shareholders’ Return(TSR) of Eni’s shares as benchmarked against the TSRdelivered by a panel of the six largest international oilcompanies for market capitalization. Options can be exercised fora maximum period of three years. The strike price is calculatedas the arithmetic average of official prices registered on theMercato Telematico Azionario in the month preceding assignment.

At December 31, 2008, 23,557,425 options were outstanding forthe purchase of 23,557,425 ordinary shares. The break-down ofoutstanding options was the following:

|   |   | **Rights outstanding         as of December 31** |   | **Average strike price**(euro) |
|--------|--------|--------------------------------------------------|--------|--------------------------------|
|   |   |                                                  |   |                                |

| Stock option plan 2002        |   | 97,000         |   | 15.216 |
|-------------------------------|--------|----------------|--------|--------|
| Stock        option plan 2003 |   | 231,900        |   | 13.743 |
| Stock option plan 2004        |   | 671,600        |   | 16.576 |
| Stock        option plan 2005 |   | 3,756,000      |   | 22.512 |
| Stock option plan 2006        |   | 5,954,250      |   | 23.119 |
| Stock        option plan 2007 |   | 5,492,375      |   | 27.451 |
| Stock option plan 2008        |   | 7,354,300      |   | 22.540 |
|                          |   | **23,557,425** |   |   |

|   |   |  |   |  |
|--------|--------|--|--------|--|

At December 31, 2008 the weighted-average remainingcontractual life of the plans at December 2002, 2003, 2004, 2005,2006, 2007 and 2008 was 1 year and 7 months, 2 years and 7months, 3 years and 7 months, 4 years and 7 months, 3 years and 7months, 4 years and 7 months and 5 years and 7 months,respectively. 

Changes of stock option plans in 2006, 2007 and 2008 consistedof the following:

|   |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|----------|--------|----------|--------|----------|
|   |   |          |   |          |   |          |

|   |   | Number         of shares |   | Average strike price (euro) |   | Market price (a) (euro) |   | Number         of shares |   | Average strike price (euro) |   | Market price (a) (euro) |   | Number         of shares |   | Average strike price (euro) |   | Market price (a) (euro) |
|--------|--------|--------------------------|--------|-----------------------------|--------|-------------------------|--------|--------------------------|--------|-----------------------------|--------|-------------------------|--------|--------------------------|--------|-----------------------------|--------|-------------------------|
|   |   |                          |   |                             |   |                         |   |                          |   |                             |   |                         |   |                          |   |                             |   |                         |

| **Stock options as of January 1**               |   | **13,379,600** |   |   | **17.705** |   | **23.460** |   | **15,290,400** |   |   | **21.022** |   | **25.520** |   | **17,699,625** |   |   | **23.822** |   | **25.120** |
|-------------------------------------------------|--------|----------------|--------|--------|------------|--------|------------|--------|----------------|--------|--------|------------|--------|------------|--------|----------------|--------|--------|------------|--------|------------|
| New rights        granted                       |   | 7,050,000      |   |   | 23.119     |   | 23.119     |   | 6,128,500      |   |   | 27.451     |   | 27.447     |   | 7,415,000      |   |   | 22.540     |   | 22.538     |
| Rights exercised in the period                  |   | (4,943,200     | )      |   | 15.111     |   | 23.511     |   | (3,028,200     | )      |   | 16.906     |   | 25.338     |   | (582,100       | )      |   | 17.054     |   | 24.328     |
| Rights        cancelled in the period           |   | (196,000       | )      |   | 19.119     |   | 23.797     |   | (691,075       | )      |   | 24.346     |   | 24.790     |   | (975,100       | )      |   | 24.931     |   | 19.942     |
| **Stock options outstanding as of December 31** |   | **15,290,400** |   |   | **21.022** |   | **25.520** |   | **17,699,625** |   |   | **23.822** |   | **25.120** |   | **23,557,425** |   |   | **23.540** |   | **16.556** |
| **of        which exercisable at December 31**  |   | **1,622,900**  |   |   | **16.190** |   | **25.520** |   | **2,292,125**  |   |   | **18.440** |   | **25.120** |   | **5,184,250**  |   |   | **21.263** |   | **16.556** |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)          |    | Market price        relating to new rights granted, rights exercised in the        period and rights cancelled in the period corresponds to        the average market value (arithmetic average of official        prices recorded on Mercato Telematico Azionario in the        month preceding: (i) the date of the Board of Directors        resolution regarding the stock grants assignment; (ii)        the date in which the emission/transfer of the shares        granted was recorded in the grantee’s securities        account; and (iii) the date in which the unilateral        termination of employment for rights was cancelled),        weighted with the number of shares. Market price of stock        at the beginning and end of the year is the price        recorded at December 31. |

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The fair value of stock options granted during the years 2002,2003, 2004 and 2005 was euro 5.39, euro 1.50, euro 2.01 and euro3.33 per share, respectively. For 2006, 2007 and 2008 theweighted average considering options granted was euro 2.89, euro2.98 and euro 2.60 per share, respectively.

The fair value was determined by applying the followingassumptions:

|   |   |   |   | **2002** |   | **2003** |   | **2004** |   | **2005** |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|--------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|--------|----------|
|   |   |   |   |          |   |          |   |          |   |          |   |          |   |          |   |          |

| Risk-free interest rate   |   | (%)     |   | 3.5  |   | 3.2  |   | 3.2  |   | 2.5  |   | 4.0  |   | 4.7  |   | 4.9  |
|---------------------------|--------|---------|--------|------|--------|------|--------|------|--------|------|--------|------|--------|------|--------|------|
| Expected        life      |   | (years) |   | 8    |   | 8    |   | 8    |   | 8    |   | 6    |   | 6    |   | 6    |
| Expected volatility       |   | (%)     |   | 43.0 |   | 22.0 |   | 19.0 |   | 21.0 |   | 16.8 |   | 16.3 |   | 19.2 |
| Expected        dividends |   | (%)     |   | 4.5  |   | 5.4  |   | 4.5  |   | 4.0  |   | 5.3  |   | 4.9  |   | 6.1  |

|   |   |   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Costs of the year related to stock grant and stock optionplans amounted to euro 25 million (euro 20 million and euro 27million in 2006 and 2007, respectively).

**Compensation of key management**Compensation of persons responsible for key positions inplanning, direction and control functions of Eni Group, includingexecutive and non-executive officers, general managers andmanagers with strategic responsibility (key management) amount toeuro 23 million, euro 25 million and euro 25 million for 2006,2007 and 2008 respectively, and consisted of the following: 

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Wages and salaries              |   | 16     |   | 17     |   | 17     |
|---------------------------------|--------|--------|--------|--------|--------|--------|
| Post-employment        benefits |   | 1      |   | 1      |   | 1      |
| Other long-term benefits        |   | 3      |   | 3      |   | 3      |
| Stock        grant/option       |   | 3      |   | 4      |   | 4      |
|                            |   | **23** |   | **25** |   | **25** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

**Compensation of Directors and StatutoryAuditors**Compensation of Directors amounted to euro 8.7 million, euro 8.9million and euro 6.4 million for 2006, 2007 and 2008,respectively. Compensation of Statutory Auditors amounted to euro0.686, euro 0.678 million and euro 0.634 million in 2006, 2007and 2008, respectively. Compensation included emoluments and allother retributive and social security compensations due for thefunction of directors or statutory auditor assumed by Eni SpA orother companies included in the scope of consolidation,representing a cost for Eni. 

**Depreciation, depletion, amortization and impairments**Depreciation, depletion, amortization and impairments chargesconsisted of the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Depreciation, depletion and amortization:                                                          |   |      |   |   |      |   |   |      |   |
|----------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|
| - tangible        assets                                                                           |   | 4,694     |   |   | 4,935     |   |   | 5,994     |   |
| - intangible assets                                                                                |   | 1,462     |   |   | 2,096     |   |   | 2,436     |   |
|                                                                                               |   | **6,156** |   |   | **7,031** |   |   | **8,430** |   |
| Impairments:                                                                                       |   |      |   |   |      |   |   |      |   |
| - tangible        assets                                                                           |   | 231       |   |   | 140       |   |   | 1,343     |   |
| - intangible assets                                                                                |   | 54        |   |   | 67        |   |   | 53        |   |
|                                                                                               |   | **285**   |   |   | **207**   |   |   | **1,396** |   |
| less:                                                                                              |   |      |   |   |      |   |   |      |   |
| - reversal        of impairments - tangible assets                                                 |   | (17       | )      |   |      |   |   | (2        | )      |
| - reversal of impairment - intangible assets                                                       |   |      |   |   |      |   |   | (1        | )      |
| -        capitalized direct costs associated with self-constructed        assets - tangible assets |   | (1        | )      |   | (1        | )      |   | (4        | )      |
| - capitalized direct costs associated with        self-constructed assets - intangible assets      |   | (2        | )      |   | (1        | )      |   | (4        | )      |
|                                                                                               |   | **6,421** |   |   | **7,236** |   |   | **9,815** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

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**32 Financial income (expense)**Finance income (expense) consisted of the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| **Finance income (expense)**                    |   |     |   |   |     |   |   |     |   |
|-------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Finance        income                           |   | 3,749    |   |   | 4,445    |   |   | 7,985    |   |
| Finance expense                                 |   | (3,971   | )      |   | (4,554   | )      |   | (8,198   | )      |
|                                            |   | **(222** | **)**  |   | **(109** | **)**  |   | **(213** | **)**  |
| Gain (loss) on derivative financial instruments |   | 383      |   |   | 26       |   |   | (551     | )      |
|                                            |   | **161**  |   |   | **(83**  | **)**  |   | **(764** | **)**  |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Net finance income (expense) consisted of thefollowing:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| **Finance income (expense) related to net        borrowings**                                                   |   |     |   |   |     |   |   |     |   |
|-----------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Interest        due to banks and other financial institutions                                                   |   | (215     | )      |   | (445     | )      |   | (745     | )      |
| Interest and other finance expense on ordinary        bonds                                                     |   | (248     | )      |   | (258     | )      |   | (248     | )      |
| Interest        from banks                                                                                      |   | 194      |   |   | 236      |   |   | 87       |   |
| Interest and other income on financing        receivables and securities held for non-operating        purposes |   | 62       |   |   | 55       |   |   | 82       |   |
|                                                                                                            |   | **(207** | **)**  |   | **(412** | **)**  |   | **(824** | **)**  |
| **Exchange differences**                                                                                        |   |     |   |   |     |   |   |     |   |
| Positive        exchange differences                                                                            |   | 2,496    |   |   | 2,877    |   |   | 7,339    |   |
| Negative exchange differences                                                                                   |   | (2,648   | )      |   | (2,928   | )      |   | (7,133   | )      |
|                                                                                                            |   | **(152** | **)**  |   | **(51**  | **)**  |   | **206**  |   |
| **Other finance income (expense)**                                                                              |   |     |   |   |     |   |   |     |   |
| Income        from equity instruments                                                                           |   |     |   |   | 188      |   |   | 241      |   |
| Capitalized finance expense                                                                                     |   | 116      |   |   | 180      |   |   | 236      |   |
| Interest        and other income on financing receivables and securities        held for operating purposes     |   | 119      |   |   | 96       |   |   | 62       |   |
| Interest on tax credits                                                                                         |   | 17       |   |   | 31       |   |   | 37       |   |
| Finance        expense due to passage of time (accretion discount)        (a)                                   |   | (116     | )      |   | (186     | )      |   | (249     | )      |
| Other finance income                                                                                            |   | 1        |   |   | 45       |   |   | 78       |   |
|                                                                                                            |   | **137**  |   |   | **354**  |   |   | **405**  |   |
|                                                                                                            |   | **(222** | **)**  |   | **(109** | **)**  |   | **(213** | **)**  |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                         |
|--------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)          |    | The item        related to the increase in provisions for contingencies        that are shown at present value in non-current        liabilities. |

Income from equity instruments of euro 241million (euro 188 million in 2007) relating to the contractualremuneration of 9.4% on the 20% interest in OAO Gazprom Neftaccording to the contractual arrangements between Eni and Gazprom(more information is included in Note 2 - Other financial assetsheld for trading or available for sale).

The fair value gain (loss) on derivativefinancial instruments consisted of the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Derivatives on exchange rate        |   | 313     |   |   | 120    |   |   | (300     | )     |
|-------------------------------------|--------|---------|--------|--------|--------|--------|--------|----------|-------|
| Derivatives        on interest rate |   | 61      |   |   | 35     |   |   | (127     | )     |
| Derivatives on commodities          |   | 9       |   |   | (129   | )      |   | (124     | )     |
|                                |   | **383** |   |   | **26** |   |   | **(551** | **)** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Net loss from derivatives of euro 551 million(euro 383 million and euro 26 million of net gain in 2006 and2007, respectively) was primarily due to the recognition in theprofit and loss account of the change in fair value ofderivatives that cannot be qualified as hedging instruments underIFRS. In fact, since these derivatives are entered 

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into for amounts corresponding to the netexposure to exchange rate risk, interest rate risk or commodityrisk, they cannot be linked to specific trade or financingtransactions.

The lack of these formal requirements in order toassess these derivatives as hedging instruments under IFRSprovides also the recognition in profit or loss of negativeexchange translation differences on assets and liabilitiesdenominated in currencies other than functional currency, asthese translation effects cannot be offset by changes in fairvalue of derivative contracts.

Losses on commodity derivatives amounted to euro124 million, included gain of euro 7 million related to theineffective portion of the change in fair value of cash flowhedging derivatives (time value component) entered into by theExploration & Production segment. Further information isgiven in Note 7 - Other current asset. The fair value ofderivative contracts is provided in Note 7 - Other current asset,Note 15 - Other non-current receivables, Note 20 - Other currentliabilities and Note 25 - Other non-current liabilities.

**33 Income from investments**

**Share of profit (loss) of equity-accounted investments**Share of profit (loss) of equity-accounted investmentsconsisted of the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Share of profit of equity-accounted investments                         |   | 887     |   |   | 906     |   |   | 761     |   |
|-------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Share of        loss of equity-accounted investments                    |   | (36     | )      |   | (135    | )      |   | (105    | )      |
| Decreases (increases) in the provision for        losses on investments |   | (56     | )      |   | 2       |   |   | (16     | )      |
|                                                                    |   | **795** |   |   | **773** |   |   | **640** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

More information is provided in Note 12 - Investments. 

**Other gain (loss) from investments**Other gain (loss) from investments consisted of the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Gains on disposals                 |   | 98      |   |   | 170     |   |   | 510     |   |
|------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|
| Dividends                          |   | 25      |   |   | 301     |   |   | 218     |   |
| Losses on disposals                |   | (7      | )      |   | (1      | )      |   | (1      | )      |
| Other        income (expense), net |   | (8      | )      |   |    |   |   | 6       |   |
|                               |   | **108** |   |   | **470** |   |   | **733** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Dividends of euro 510 million primarily relatedto Nigeria LNG (euro 453 million) and Saudi EuropeanPetrochemical Co - Ibn Zahr (euro 34 million).

Gains on disposals of euro 218 million primarilyrelated to the sale of Gaztransport et Technigaz SAS (euro 185million), Agip España SA (euro 15 million) and PadanaAssicurazioni SpA (euro 10 million). Gains on disposals for 2007of euro 301 million primarily related to the sale of HaldorTopsøe AS (euro 265 million) and Camom SA (euro 25 million).Gains on disposals for 2006 of euro 25 million primarily relatedto the sale of Fiorentina Gas SpA and Toscana Gas SpA (euro 16million). 

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**34 Income taxes**Income taxes consisted of the following:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Current taxes:                                                            |   |       |   |   |      |   |   |       |   |
|---------------------------------------------------------------------------|--------|------------|--------|--------|-----------|--------|--------|------------|--------|
| - Italian        subsidiaries                                             |   | 2,007      |   |   | 2,380     |   |   | 1,916      |   |
| - foreign subsidiaries of the Exploration &        Production segment |   | 6,740      |   |   | 6,695     |   |   | 9,744      |   |
| - foreign        subsidiaries                                             |   | 529        |   |   | 482       |   |   | 426        |   |
|                                                                      |   | **9,276**  |   |   | **9,557** |   |   | **12,086** |   |
| Net        deferred taxes:                                                |   |       |   |   |      |   |   |       |   |
| - Italian subsidiaries                                                    |   | 230        |   |   | (582      | )      |   | (1,603     | )      |
| - foreign        subsidiaries of the Exploration & Production segment |   | 1,095      |   |   | 246       |   |   | (827       | )      |
| - foreign subsidiaries                                                    |   | (33        | )      |   | (2        | )      |   | 36         |   |
|                                                                      |   | **1,292**  |   |   | **(338**  | **)**  |   | **(2,394** | **)**  |
|                                                                      |   | **10,568** |   |   | **9,219** |   |   | **9,692**  |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Current income taxes of euro 1,916 million were in respect ofItalian subsidiaries for Ires (euro 1,408 million) and Irap (euro307 million) and of foreign taxes (euro 201 million).

The effective tax rate was 50.3% (51.8% and 46.0% in 2006 and2007, respectively) compared with a statutory tax rate of 38.2%(37.9% in 2006 and 2007, respectively) and calculated by applyinga 33.0%15 tax rate (Ires) to profit before incometaxes and 3.9% tax rate (Irap) to the net value of production asprovided for by Italian laws.

The difference between the statutory and effective tax ratewas due to the following factors:

| (%)    |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|----------|--------|----------|--------|----------|
|   |   |          |   |          |   |          |

| **Statutory tax rate**                                                                                                                        |   | **37.9** |   |   | **37.9** |   |   | **38.2** |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Items        increasing (decreasing) statutory tax rate:                                                                                      |   |     |   |   |     |   |   |     |   |
| - higher foreign subsidiaries tax rate                                                                                                        |   | 13.6     |   |   | 10.2     |   |   | 15.2     |   |
| - changes        in Italian statutory tax rate and adjustment of tax base        of amortizable assets for Italian subsidiaries               |   |     |   |   | (2.0     | )      |   |     |   |
| - impact pursuant to Law Decree No. 112 of June        25, 2008, the Budget Law 2008 and enactment of a renewed        tax framework in Libya |   |     |   |   |     |   |   | (3.8     | )      |
| -        permanent differences and other adjustments                                                                                          |   | 0.3      |   |   | (0.1     | )      |   | 0.7      |   |
|                                                                                                                                          |   | **13.9** |   |   | **8.1**  |   |   | **12.1** |   |
|                                                                                                                                          |   | **51.8** |   |   | **46.0** |   |   | **50.3** |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

The increase in the tax rate of foreign subsidiaries primarilyrelated to a 17.1 percentage points increase in the Exploration& Production segment (17.2% and 15% in 2006 and 2007,respectively).

The impact pursuant to Law Decree No. 112 of June 25, 2008,the Budget Law 2008 and enactment of a renewed tax framework inLibya of 3.8% consisted of the following: (i) utilization ofdeferred tax liabilities recognized on higher carrying amounts ofyear-end inventories of oil, gas and refined products stated atthe weighted-average cost with respect to their tax baseaccording to the last-in-first-out method (LIFO) (euro 528million). In fact, pursuant to the Law Decree No. 112 of June 25,2008 (become Law No. 133/2008), energy companies in Italy arerequired from 2008 to state inventories of hydrocarbons at theweighted-average cost for tax purposes as opposed to the previousLIFO evaluation and to recognize a one-off tax calculated byapplying a special tax with a 16% rate on the difference betweenthe two amounts. Accordingly, profit and loss benefited from thedifference between utilization of deferred tax liabilitiesaccrued on hydrocarbons inventories and the one-off tax (euro 229million), for a total positive impact of euro 176 million, whichconsider previously applicable statutory tax rate (Ires) of 33%pursuant to the Law Decree No. 112 of June 25, 2008 instead of27.5% of the previous tax regime. This one-off tax will be paidin three annual installments of same amount, due from 2009onwards; (ii) application of the Italian Budget Law for 2008 thatprovide an increase in limits whereby carrying amounts of assetsand liabilities of consolidated subsidiaries can be recognizedfor tax purposes by paying a one-off tax calculated by 

 

----

| (15) |   | Includes a        5.5% supplemental tax rate on taxable profit of energy        companies in Italy (whose primary activity is the        production and marketing of hydrocarbons and electricity        and with annual revenues in excess of euro 25 million)        effective January 1, 2008 and pursuant to the Law Decree        No. 112 of June 25, 2008. |
|------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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applying a special rate of 6% (positive impact on profit andloss of euro 370 million; euro 290 million net of the specialtax); (iii) enactment of a renewed tax framework in Libyaregarding oil companies operating in accordance with productionsharing schemes. Based on the new provisions, the tax base of theCompany’s Libyan oil properties has been reassessedresulting in the partial utilization of previously accrued taxliabilities of euro 173 million; and (iv) the impact of abovementioned Law Decree No. 112/2008 on energy companies calculatedby applying statutory tax rate (Ires) of 33% pursuant to the LawDecree No. 112 of June 25, 2008 instead of the previouslyapplicable statutory tax rate (Ires) of 27.5% (euro 94 million).

In 2006 the increase in the tax rate of foreign subsidiariesrelating the Exploration & Production segment included theapplication of a windfall tax introduced by the Algeriangovernment with effect starting from August 1, 2006 (1.6percentage points) and a supplemental tax rate introduced by thegovernment of the United kingdom relating to the North Seaproductions with effect starting from January 1, 2006 (1percentage point).

The adjustment to deferred tax assets and liabilities and tothe 2007 tax rate for Italian subsidiaries were recognized inconnection with certain amendments to the Italian tax regimeenacted by the 2008 Budget Law. These included an optionregarding the increase of the tax bases of certain tangible andother assets to their carrying amounts (euro 773 million) bypaying a special tax (euro 325 million) and a lower statutory taxrate (Ires from 33% to 27.5%, Irap from 4.25% to 3.9%, euro 54million).

In 2006 permanent differences mainly arose from certaincharges that are not deductible because taken in connection withrisk provisions arising from proceedings against the ItalianAntitrust and other regulatory Authorities (0.4 percentagepoints).

**35 Earnings per share attributable to Eni**Basic earnings per ordinary share are calculated by dividing netprofit for the year attributable to Eni’s shareholders bythe weighted average number of ordinary shares issued andoutstanding during the year, excluding treasury shares.

The average number of ordinary shares used forthe calculation of the basic earnings per share outstanding atDecember 31, 2006, 2007 and 2008, was 3,698,201,896,3,668,305,807 and 3,638,835,896 respectively.

Diluted earnings per share is calculated bydividing net profit for the year attributable to Eni’sshareholders by the weighted average number of sharesfully-diluted which includes issued and outstanding shares duringthe year, excluding treasury shares and including the number ofshares that could be issued potentially in connection withstock-based compensation plans.

The average number of shares fully diluted usedin the calculation of diluted earnings was 3,701,262,557,3,669,172,762 and 3,638,854,276 for the years ending December 31,2006, 2007 and 2008, respectively.

Reconciliation of the average number of sharesused for the calculation for both basic and diluted earning pershare was as follows:

|   |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|----------|--------|----------|--------|----------|
|   |   |          |   |          |   |          |

| **Average number of shares used for the        calculation of the basic earnings per share**          |   |                    |   | **3,698,201,896** |   | **3,668,305,807** |   | **3,638,835,896** |
|-------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|-------------------|--------|-------------------|--------|-------------------|
| Number of        potential shares following stock grant plans                                         |   |                    |   | 1,070,676         |   | 302,092           |   |              |
| Number of potential shares following stock        options plans                                       |   |                    |   | 1,989,985         |   | 564,863           |   | 18,380            |
| **Average        number of shares used for the calculation of the diluted        earnings per share** |   |                    |   | **3,701,262,557** |   | **3,669,172,762** |   | **3,638,854,276** |
| **Eni’s net profit**                                                                             |   | (euro        million)   |   | **9,217**         |   | **10,011**        |   | **8,825**         |
| **Basic        earning per share**                                                                    |   | (euro per share)        |   | **2.49**          |   | **2.73**          |   | **2.43**          |
| **Diluted earning per share**                                                                         |   | (euro        per share) |   | **2.49**          |   | **2.73**          |   | **2.43**          |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

 

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**36 Information by industrysegment and geographic financial information****Information by industry segment**

| (euro million) |   | **Exploration &        Production** |   | **Gas & Power** |   | **Refining & Marketing** |   | **Petrochemicals** |   | **Engineering &        Construction** |   | **Other activities** |   | **Corporate and financial        companies** |   | **Intra-Group        profits** |   | **Total** |
|----------------|--------|-----------------------------------------|--------|---------------------|--------|------------------------------|--------|--------------------|--------|-------------------------------------------|--------|----------------------|--------|----------------------------------------------|--------|--------------------------------|--------|-----------|
|           |   |                                         |   |                     |   |                              |   |                    |   |                                           |   |                      |   |                                              |   |                                |   |           |

| **2006**                                                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|---------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Net sales        from operations (a)                          |   | 27,173  |   |   | 28,368 |   |   | 38,210 |   |   | 6,823  |   |   | 6,979  |   |   | 823    |   |   | 1,174  |   |   |   |   |   |   |   |
| Less: intersegment sales                                      |   | (18,445 | )      |   | (751   | )      |   | (1,300 | )      |   | (667   | )      |   | (771   | )      |   | (520   | )      |   | (991   | )      |   |   |   |   |   |   |
| Net sales        to customers                                 |   | 8,728   |   |   | 27,617 |   |   | 36,910 |   |   | 6,156  |   |   | 6,208  |   |   | 303    |   |   | 183    |   |   |   |   |   | 86,105 |   |
| Operating profit                                              |   | 15,580  |   |   | 3,802  |   |   | 319    |   |   | 172    |   |   | 505    |   |   | (622   | )      |   | (296   | )      |   | (133   | )      |   | 19,327 |   |
| Provisions        for contingencies                           |   | 153     |   |   | 197    |   |   | 264    |   |   | 30     |   |   | (13    | )      |   | 236    |   |   | (100   | )      |   |   |   |   | 767    |   |
| Depreciation, amortization and writedowns                     |   | 4,776   |   |   | 738    |   |   | 447    |   |   | 174    |   |   | 196    |   |   | 28     |   |   | 71     |   |   | (9     | )      |   | 6,421  |   |
| Share of        profit (loss) of equity-accounted investments |   | 28      |   |   | 509    |   |   | 194    |   |   | 2      |   |   | 66     |   |   | (4     | )      |   |   |   |   |   |   |   | 795    |   |
| Identifiable assets (b)                                       |   | 29,720  |   |   | 23,500 |   |   | 11,359 |   |   | 2,984  |   |   | 6,362  |   |   | 344    |   |   | 1,023  |   |   | (666   | )      |   | 74,626 |   |
| Unallocated        assets                                     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 13,686 |   |
| Equity-accounted investments                                  |   | 258     |   |   | 2,214  |   |   | 874    |   |   | 11     |   |   | 483    |   |   | 46     |   |   |   |   |   |   |   |   | 3,886  |   |
| Identifiable        liabilities (c)                           |   | 9,119   |   |   | 5,284  |   |   | 4,712  |   |   | 806    |   |   | 3,869  |   |   | 1,940  |   |   | 1,619  |   |   |   |   |   | 27,349 |   |
| Unallocated liabilities                                       |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 19,764 |   |
| Capital        expenditures                                   |   | 5,203   |   |   | 1,174  |   |   | 645    |   |   | 99     |   |   | 591    |   |   | 72     |   |   | 88     |   |   | (39    | )      |   | 7,833  |   |
| **2007**                                                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net sales        from operations (a)                          |   | 27,278  |   |   | 27,633 |   |   | 36,401 |   |   | 6,934  |   |   | 8,678  |   |   | 205    |   |   | 1,313  |   |   |   |   |   |   |   |
| Less: intersegment sales                                      |   | (16,475 | )      |   | (760   | )      |   | (1,276 | )      |   | (363   | )      |   | (1,182 | )      |   | (31    | )      |   | (1,099 | )      |   |   |   |   |   |   |
| Net sales        to customers                                 |   | 10,803  |   |   | 26,873 |   |   | 35,125 |   |   | 6,571  |   |   | 7,496  |   |   | 174    |   |   | 214    |   |   |   |   |   | 87,256 |   |
| Operating profit                                              |   | 13,788  |   |   | 4,127  |   |   | 729    |   |   | 74     |   |   | 837    |   |   | (444   | )      |   | (217   | )      |   | (26    | )      |   | 18,868 |   |
| Provisions        for contingencies                           |   | 5       |   |   | 37     |   |   | 256    |   |   | 15     |   |   | 11     |   |   | 264    |   |   | 3      |   |   |   |   |   | 591    |   |
| Depreciation, amortization and writedowns                     |   | 5,626   |   |   | 687    |   |   | 491    |   |   | 116    |   |   | 248    |   |   | 10     |   |   | 68     |   |   | (10    | )      |   | 7,236  |   |
| Share of        profit (loss) of equity-accounted investments |   | 23      |   |   | 449    |   |   | 216    |   |   |   |   |   | 79     |   |   | 6      |   |   |   |   |   |   |   |   | 773    |   |
| Identifiable assets (b)                                       |   | 33,435  |   |   | 24,530 |   |   | 13,767 |   |   | 3,427  |   |   | 8,017  |   |   | 275    |   |   | 854    |   |   | (692   | )      |   | 83,613 |   |
| Unallocated        assets                                     |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17,847 |   |
| Equity-accounted investments                                  |   | 1,926   |   |   | 2,152  |   |   | 1,267  |   |   | 15     |   |   | 230    |   |   | 49     |   |   |   |   |   |   |   |   | 5,639  |   |
| Identifiable        liabilities (c)                           |   | 11,480  |   |   | 5,390  |   |   | 5,420  |   |   | 939    |   |   | 4,349  |   |   | 1,827  |   |   | 1,380  |   |   |   |   |   | 30,785 |   |
| Unallocated liabilities                                       |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 27,808 |   |
| Capital        expenditures                                   |   | 6,625   |   |   | 1,366  |   |   | 979    |   |   | 145    |   |   | 1,410  |   |   | 59     |   |   | 108    |   |   | (99    | )      |   | 10,593 |   |

| **2008**                                                      |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |
|---------------------------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|
| Net sales from operations (a)                                 |   | 33,318  |   |   | 36,936 |   |   | 45,083 |   |   | 6,303  |   |   | 9,176  |   |   | 185    |   |   | 1,331  |   |   | 75     |   |   |    |   |
| Less: intersegment sales                                      |   | (19,067 | )      |   | (873   | )      |   | (1,496 | )      |   | (398   | )      |   | (1,219 | )      |   | (29    | )      |   | (1,177 | )      |   |   |   |   |    |   |
| Net sales to customers                                        |   | 14,251  |   |   | 36,063 |   |   | 43,587 |   |   | 5,905  |   |   | 7,957  |   |   | 156    |   |   | 154    |   |   | 75     |   |   | 108,148 |   |
| Operating profit                                              |   | 16,415  |   |   | 3,933  |   |   | (1,023 | )      |   | (822   | )      |   | 1,045  |   |   | (346   | )      |   | (686   | )      |   | 125    |   |   | 18,641  |   |
| Provisions for contingencies                                  |   | 155     |   |   | 237    |   |   | 206    |   |   | 2      |   |   | 36     |   |   | 99     |   |   | 165    |   |   |   |   |   | 900     |   |
| Depreciation, amortization and writedowns                     |   | 7,542   |   |   | 744    |   |   | 729    |   |   | 395    |   |   | 335    |   |   | 8      |   |   | 76     |   |   | (14)   |   |   | 9,815   |   |
| Share of profit (loss) of equity-accounted        investments |   | 173     |   |   | 413    |   |   | 16     |   |   | (9     | )      |   | 43     |   |   | 4      |   |   |   |   |   |   |   |   | 640     |   |
| Identifiable assets (b)                                       |   | 41,989  |   |   | 31,894 |   |   | 11,081 |   |   | 2,629  |   |   | 10,630 |   |   | 362    |   |   | 789    |   |   | (641   | )      |   | 98,733  |   |
| Unallocated assets                                            |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17,857  |   |
| Equity-accounted investments                                  |   | 1,787   |   |   | 2,249  |   |   | 1,227  |   |   | 25     |   |   | 130    |   |   | 53     |   |   |   |   |   |   |   |   | 5,471   |   |
| Identifiable liabilities (c)                                  |   | 11,030  |   |   | 11,212 |   |   | 4,481  |   |   | 664    |   |   | 6,177  |   |   | 1,638  |   |   | 1,780  |   |   | (75    | )      |   | 36,907  |   |
| Unallocated liabilities                                       |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 31,173  |   |
| Capital expenditures                                          |   | 9,545   |   |   | 1,794  |   |   | 965    |   |   | 212    |   |   | 2,027  |   |   | 52     |   |   | 95     |   |   | (128   | )      |   | 14,562  |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                       |
|--------------|--------------|-------------------------------------------------------------------------------------------------|
| (a)          |    | Before        elimination of intersegment sales.                                                |
| (b)          |    | Included        assets directly associated with the generation of        operating profit.      |
| (c)          |    | Included        liabilities directly associated with the generation of        operating profit. |

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Inter-segment sales were conducted on an arm’s lengthbasis.

**Geographic financial information***Assets and investments by geographic area of origin*

| (euro million) |   |   |   | **Italy** |   | **Other European Union** |   | **Rest of Europe** |   | **Americas** |   | **Asia** |   | **Africa** |   | **Other areas** |   | **Total** |
|----------------|--------|--------|--------|-----------|--------|--------------------------|--------|--------------------|--------|--------------|--------|----------|--------|------------|--------|-----------------|--------|-----------|
|           |   |   |   |           |   |                          |   |                    |   |              |   |          |   |            |   |                 |   |           |

| **2006**                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Identifiable        assets (a) |   | 37,339 |   | 10,037 |   | 3,200  |   | 2,987  |   | 6,341  |   | 14,190 |   | 532    |   | 74,626 |
| Capital expenditures           |   | 2,529  |   | 713    |   | 436    |   | 572    |   | 1,032  |   | 2,419  |   | 132    |   | 7,833  |
| **2007**                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets (a)        |   | 39,742 |   | 11,071 |   | 3,917  |   | 6,260  |   | 6,733  |   | 15,368 |   | 522    |   | 83,613 |
| Capital        expenditures    |   | 3,246  |   | 1,246  |   | 469    |   | 1,004  |   | 1,253  |   | 3,152  |   | 223    |   | 10,593 |
| **2008**                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets (a)        |   | 40,432 |   | 15,065 |   | 3,561  |   | 6,149  |   | 10,561 |   | 22,044 |   | 921    |   | 98,733 |
| Capital expenditures           |   | 3,674  |   | 1,660  |   | 582    |   | 1,240  |   | 1,777  |   | 5,153  |   | 476    |   | 14,562 |

|   |   |   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (a)          |    | Includes        assets directly related to the generation of operating        profit. |

*Sales from operations by geographic area of destination*

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Italy                       |   | 36,343     |   | 37,346     |   | 42,909      |
|-----------------------------|--------|------------|--------|------------|--------|-------------|
| Other        European Union |   | 23,949     |   | 23,074     |   | 29,341      |
| Rest of Europe              |   | 6,975      |   | 5,507      |   | 7,125       |
| Americas                    |   | 6,250      |   | 6,447      |   | 7,218       |
| Asia                        |   | 5,595      |   | 5,840      |   | 8,916       |
| Africa                      |   | 5,949      |   | 8,010      |   | 12,331      |
| Other areas                 |   | 1,044      |   | 1,032      |   | 308         |
|                        |   | **86,105** |   | **87,256** |   | **108,148** |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

**37 Transactions with related parties******In the ordinary course of its business, Eni enters intotransactions regarding:

| a) |   | the exchange of goods,        provision of services and financing with joint ventures,        associates and non-consolidated subsidiaries;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b) |   | the exchange of goods and        provision of services with entities directly and        indirectly owned or controlled by the Government;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| c) |   | transactions with the Cosmi        Holding Group related to Eni SpA through a member of the        Board of Directors related to certain acquisition of        engineering, construction and maintenance services.        Relevant transactions which were executed on an        arm’s length basis amounted to approximately euro 13        million, euro 18 million and euro 13 million in 2006,        2007 and 2008, respectively. At December 31, 2008 were        outstanding receivables for euro 4 million and payables        for euro 8 million;                                                                                                                                                                                                                                                                                                                                                                                                                    |
| d) |   | contributions to entities,        controlled by Eni with the aim to develop solidarity,        culture and research initiatives. In particular these        related to: (a) Eni Foundation established by Eni as a        non-profit entity with the aim of pursuing exclusively        solidarity initiatives in the fields of social        assistance, health, education, culture and environment as        well as research and development. Transactions with Eni        Foundation related to contribution of euro 200 million to        the solidarity fund pursuant to Italian Law Decree No.        112/2008 and the payable of euro 100 million related to        the part of the contribution that had not already been        paid. Transactions in the past periods were not material;        (b) Enrico Mattei Foundation established by Eni with the        aim of enhancing, through studies, research and training        initiatives, knowledge in the fields of |

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|   |   | economics, energy and        environment, both at the national and international        level. Transactions with Enrico Mattei Foundation were        not material. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Transactions with related parties were conducted in theinterest of Eni companies and, with exception of those withentities with the aim to develop solidarity, culture and researchinitiatives, on an arm’s length basis.

Trade and other transactions with joint ventures, associatesand non-consolidated subsidiaries as well as with entitiesdirectly and indirectly owned or controlled by the Government inthe 2006, 2007 and 2008, respectively, consisted of thefollowing:

| (euro        million) |   | **Dec. 31, 2006** |   | **2006** |
|-----------------------|--------|-------------------|--------|----------|
|                  |   |                   |   |          |

|   | Costs |   | Revenues |
|--------|-------|--------|----------|
|   |       |   |          |

| Name |    | Receivables and other assets |    | Payables and other liabilities |    | Guarantees |    | Goods |    | Services |    | Goods |    | Services |
|------|--------------|------------------------------|--------------|--------------------------------|--------------|------------|--------------|-------|--------------|----------|--------------|-------|--------------|----------|
|      |         |                              |         |                                |         |            |         |       |         |          |         |       |         |          |

| **Joint ventures and associates**                              |   |    |   |      |   |      |   |      |   |      |   |      |   |    |
|----------------------------------------------------------------|--------|---------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|---------|
| ASG Scarl                                                      |   | 7       |   | 40        |   | 80        |   |      |   | 88        |   | 1         |   | 1       |
| Azienda Energia e Servizi Torino SpA                           |   | 1       |   | 22        |   |      |   |      |   | 64        |   | 1         |   | 1       |
| Bernhard        Rosa Inh. Ingeborg Plöchinger GmbH        |   | 10      |   |      |   |      |   |      |   |      |   | 96        |   |    |
| Blue Stream Pipeline Co BV                                     |   | 34      |   | 19        |   |      |   |      |   | 193       |   |      |   | 1       |
| Bronberger        & Kessler Und Gilg & Schweiger GmbH  |   | 11      |   |      |   |      |   |      |   |      |   | 113       |   |    |
| CAM Petroli Srl                                                |   | 103     |   |      |   |      |   |      |   |      |   | 310       |   |    |
| CEPAV        (Consorzio Eni per l’Alta Velocità) Uno |   | 87      |   | 87        |   | 5,654     |   | 16        |   | 2         |   |      |   | 304     |
| Charville - Consultores e Serviços Lda                    |   | 7       |   |      |   | 85        |   |      |   |      |   | 4         |   | 11      |
| Eni Oil Co        Ltd                                          |   | 5       |   | 96        |   |      |   |      |   | 59        |   |      |   |    |
| Fox Energy SpA                                                 |   | 35      |   |      |   |      |   |      |   |      |   | 125       |   |    |
| Gasversorgung        Süddeutschland GmbH                  |   | 14      |   |      |   |      |   |      |   | 1         |   | 123       |   | 19      |
| Gruppo Distribuzione Petroli Srl                               |   | 19      |   |      |   |      |   |      |   |      |   | 54        |   |    |
| Karachaganak        Petroleum Operating BV                     |   | 23      |   | 70        |   |      |   | 29        |   | 129       |   |      |   | 7       |
| Mangrove Gas Netherlands BV                                    |   |    |   | 1         |   | 52        |   |      |   |      |   |      |   |    |
| Mellitah        Oil & Gas BV                               |   | 28      |   | 90        |   |      |   | 7         |   | 72        |   | 8         |   | 2       |
| Petrobel Belayim Petroleum Co                                  |   |    |   | 3         |   |      |   |      |   | 181       |   |      |   |    |
| Promgas        SpA                                             |   | 44      |   | 39        |   |      |   | 375       |   |      |   | 419       |   |    |
| Raffineria di Milazzo ScpA                                     |   | 9       |   | 12        |   |      |   |      |   | 237       |   | 109       |   |    |
| Rodano        Consortile Scarl                                 |   | 3       |   | 14        |   |      |   |      |   | 54        |   |      |   | 1       |
| RPCO Enterprises Ltd                                           |   | 13      |   |      |   | 104       |   |      |   |      |   |      |   | 12      |
| Supermetanol        CA                                         |   |    |   | 13        |   |      |   | 91        |   |      |   |      |   |    |
| Super Octanos CA                                               |   |    |   | 13        |   |      |   | 257       |   |      |   |      |   |    |
| Trans        Austria Gasleitung GmbH                           |   | 7       |   | 78        |   |      |   | 53        |   | 138       |   |      |   | 56      |
| Transitgas AG                                                  |   |    |   | 8         |   |      |   |      |   | 64        |   |      |   |    |
| Transmediterranean        Pipeline Co Ltd                      |   |    |   | 7         |   |      |   |      |   | 80        |   |      |   |    |
| Unión Fenosa Gas SA                                       |   | 1       |   | 7         |   | 61        |   | 93        |   | 7         |   |      |   |    |
| Other (*)                                                      |   | 72      |   | 169       |   | 168       |   | 75        |   | 188       |   | 119       |   | 66      |
|                                                           |   | **533** |   | **788**   |   | **6,204** |   | **996**   |   | **1,557** |   | **1,482** |   | **481** |
| **Unconsolidated        entities controlled by Eni**           |   |    |   |      |   |      |   |      |   |      |   |      |   |    |
| Agip Kazakhstan North Caspian Operating Co NV                  |   | 27      |   | 132       |   |      |   | 18        |   | 16        |   |      |   | 57      |
| Eni BTC        Ltd                                             |   |    |   |      |   | 185       |   |      |   |      |   |      |   |    |
| Eni Timor Leste SpA                                            |   |    |   |      |   | 102       |   |      |   |      |   |      |   |    |
| Other (*)                                                      |   | 20      |   | 30        |   | 8         |   | 1         |   | 4         |   | 8         |   | 4       |
|                                                           |   | **47**  |   | **162**   |   | **295**   |   | **19**    |   | **20**    |   | **8**     |   | **61**  |
|                                                           |   | **580** |   | **950**   |   | **6,499** |   | **1,015** |   | **1,577** |   | **1,490** |   | **542** |
| **Entities owned or controlled by the        Government**      |   |    |   |      |   |      |   |      |   |      |   |      |   |    |
| Gruppo        Alitalia                                         |   | 12      |   |      |   |      |   |      |   |      |   | 354       |   |    |
| Gruppo Enel                                                    |   | 162     |   | 42        |   |      |   | 47        |   | 33        |   | 1,068     |   | 383     |
| Other (*)                                                      |   | 42      |   | 29        |   |      |   | 4         |   | 44        |   | 136       |   | 1       |
|                                                           |   | **216** |   | **71**    |   |      |   | **51**    |   | **77**    |   | **1,558** |   | **384** |
|                                                           |   | **796** |   | **1,021** |   | **6,499** |   | **1,066** |   | **1,654** |   | **3,048** |   | **926** |
|                                                           |   |         |   |           |   |           |   |           |   |           |   |           |   |         |

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

F-93

----

##### Table of Contents

| (euro        million) |   | **Dec. 31, 2007** |   | **2007** |
|-----------------------|--------|-------------------|--------|----------|
|                  |   |                   |   |          |

|   | Costs |   | Revenues |
|--------|-------|--------|----------|
|   |       |   |          |

| Name |    | Receivables and other assets |    | Payables and other liabilities |    | Guarantees |    | Goods |    | Services |    | Goods |    | Services |
|------|--------------|------------------------------|--------------|--------------------------------|--------------|------------|--------------|-------|--------------|----------|--------------|-------|--------------|----------|
|      |         |                              |         |                                |         |            |         |       |         |          |         |       |         |          |

| **Joint ventures and associates**                              |   |      |   |      |   |      |   |    |   |      |   |      |   |    |
|----------------------------------------------------------------|--------|-----------|--------|-----------|--------|-----------|--------|---------|--------|-----------|--------|-----------|--------|---------|
| ASG Scarl                                                      |   | 6         |   | 43        |   | 121       |   |    |   | 108       |   |      |   | 3       |
| Bernhard Rosa Inh. Ingeborg Plöchinger GmbH               |   | 11        |   |      |   |      |   |    |   |      |   | 86        |   |    |
| Blue        Stream Pipeline Co BV                              |   | 19        |   |      |   |      |   |    |   | 183       |   |      |   | 1       |
| Bronberger & Kessler und Gill &        Schweiger GmbH  |   | 18        |   |      |   |      |   |    |   |      |   | 106       |   |    |
| CEPAV        (Consorzio Eni per l’Alta Velocità) Uno |   | 84        |   | 70        |   | 5,870     |   |    |   |      |   |      |   | 263     |
| CEPAV (Consorzio Eni per l’Alta Velocità)        Due |   | 1         |   | 1         |   | 64        |   |    |   | 1         |   |      |   | 1       |
| Eni Oil Co        Ltd                                          |   | 7         |   | 60        |   |      |   |    |   | 141       |   | 1         |   |    |
| Fox Energy SpA                                                 |   | 49        |   |      |   |      |   |    |   |      |   | 139       |   |    |
| Gasversorgung        Süddeutschland GmbH                  |   | 54        |   |      |   |      |   |    |   |      |   | 195       |   | 4       |
| Gruppo Distribuzione Petroli Srl                               |   | 26        |   |      |   |      |   |    |   |      |   | 50        |   |    |
| Karachaganak        Petroleum Operating BV                     |   | 43        |   | 102       |   |      |   | 24      |   | 301       |   |      |   | 7       |
| Mellitah Oil & Gas BV                                      |   | 10        |   | 137       |   |      |   |    |   | 105       |   | 1         |   | 6       |
| OOO        "EniNeftegaz"                             |   | 215       |   |      |   |      |   |    |   |      |   |      |   | 1       |
| Petrobel Belayim Petroleum Co                                  |   |      |   | 60        |   |      |   |    |   | 211       |   |      |   |    |
| Raffineria        di Milazzo ScpA                              |   | 17        |   | 21        |   |      |   |    |   | 245       |   | 118       |   | 5       |
| Supermetanol CA                                                |   |      |   | 11        |   |      |   | 78      |   |      |   |      |   | 1       |
| Super        Octanos CA                                        |   |      |   | 18        |   |      |   | 201     |   |      |   |      |   | 1       |
| Trans Austria Gasleitung GmbH                                  |   | 6         |   | 80        |   |      |   | 43      |   | 147       |   |      |   | 47      |
| Transitgas        AG                                           |   |      |   | 8         |   |      |   |    |   | 64        |   |      |   |    |
| Transmediterranean Pipeline Co Ltd                             |   |      |   | 6         |   |      |   |    |   | 70        |   |      |   | 1       |
| Unión        Fenosa Gas SA                                |   | 1         |   |      |   | 61        |   |    |   |      |   | 193       |   |    |
| Other (*)                                                      |   | 120       |   | 127       |   | 56        |   | 76      |   | 374       |   | 172       |   | 118     |
|                                                           |   | **687**   |   | **744**   |   | **6,172** |   | **422** |   | **1,950** |   | **1,011** |   | **459** |
| **Unconsolidated entities controlled by Eni**                  |   |      |   |      |   |      |   |    |   |      |   |      |   |    |
| Agip        Kazakhstan North Caspian Operating Co NV           |   | 49        |   | 111       |   |      |   | 11      |   | 534       |   |      |   | 52      |
| Eni BTC Ltd                                                    |   |      |   |      |   | 138       |   |    |   |      |   |      |   | 1       |
| Other (*)                                                      |   | 23        |   | 8         |   | 11        |   | 2       |   | 18        |   | 5         |   | 18      |
|                                                           |   | **72**    |   | **119**   |   | **149**   |   | **13**  |   | **552**   |   | **5**     |   | **71**  |
|                                                           |   | **759**   |   | **863**   |   | **6,321** |   | **435** |   | **2,502** |   | **1,016** |   | **530** |
| **Entities owned or controlled by the        Government**      |   |      |   |      |   |      |   |    |   |      |   |      |   |    |
| Gruppo        Alitalia                                         |   | 4         |   |      |   |      |   |    |   |      |   | 363       |   | 1       |
| Gruppo Enel                                                    |   | 384       |   | 8         |   |      |   |    |   | 245       |   | 894       |   | 408     |
| GSE -        Gestore Servizi Elettrici                         |   | 124       |   | 63        |   |      |   | 239     |   | 37        |   | 870       |   | 7       |
| Terna SpA                                                      |   | 19        |   | 69        |   |      |   | 106     |   | 105       |   |      |   | 31      |
| Other (*)                                                      |   | 45        |   | 79        |   |      |   | 19      |   | 89        |   | 75        |   | 3       |
|                                                           |   | **576**   |   | **219**   |   |      |   | **364** |   | **476**   |   | **2,202** |   | **450** |
|                                                           |   | **1,335** |   | **1,082** |   | **6,321** |   | **799** |   | **2,978** |   | **3,218** |   | **980** |

|  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

F-94

----

##### Table of Contents

| (euro        million) |   | **Dec. 31, 2008** |   | **2008** |
|-----------------------|--------|-------------------|--------|----------|
|                  |   |                   |   |          |

|   | Costs |   | Revenues |
|--------|-------|--------|----------|
|   |       |   |          |

| Name |    | Receivables and other assets |    | Payables and other liabilities |    | Guarantees |    | Goods |    | Services |    | Other |    | Goods |    | Services |    | Other |
|------|--------------|------------------------------|--------------|--------------------------------|--------------|------------|--------------|-------|--------------|----------|--------------|-------|--------------|-------|--------------|----------|--------------|-------|
|      |         |                              |         |                                |         |            |         |       |         |          |         |       |         |       |         |          |         |       |

| **Joint ventures and associates**                              |   |      |   |      |   |      |   |      |   |      |   |    |   |      |   |      |   |   |
|----------------------------------------------------------------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|---------|--------|-----------|--------|-----------|--------|--------|
| Agiba        Petroleum                                         |   |      |   | 11        |   |      |   |      |   | 60        |   |    |   |      |   |      |   |   |
| Altergaz SA                                                    |   | 30        |   |      |   |      |   |      |   |      |   |    |   | 135       |   |      |   |   |
| ASG Scarl                                                      |   | 2         |   | 25        |   | 49        |   |      |   | 57        |   |    |   |      |   |      |   |   |
| Bayernoil Raffineriegesellschaft mbH                           |   | 3         |   | 4         |   | 1         |   | 6         |   | 62        |   |    |   | 4         |   |      |   |   |
| Bernhard        Rosa Inh. Ingeborg Plöchinger GmbH        |   | 5         |   |      |   |      |   |      |   |      |   |    |   | 98        |   |      |   |   |
| Blue Stream Pipeline Co BV                                     |   | 23        |   | 17        |   |      |   |      |   | 171       |   |    |   |      |   | 1         |   |   |
| Bronberger        & Kessler und Gilg & Schweiger GmbH  |   | 12        |   |      |   |      |   |      |   |      |   |    |   | 175       |   |      |   |   |
| CEPAV (Consorzio Eni per l’Alta Velocità)        Uno |   | 95        |   | 37        |   | 6,001     |   |      |   | 17        |   | 3       |   |      |   | 397       |   |   |
| CEPAV        (Consorzio Eni per l’Alta Velocità) Due |   | 4         |   | 1         |   | 64        |   |      |   | 1         |   |    |   |      |   | 1         |   |   |
| Eni Oil Co Ltd                                                 |   | 9         |   | 28        |   |      |   |      |   | 660       |   |    |   |      |   | 6         |   |   |
| Fox Energy        SpA                                          |   | 37        |   |      |   |      |   | 2         |   |      |   |    |   | 329       |   | 1         |   |   |
| FPSO Mystras - Produção de Petroleo Lda              |   |      |   |      |   |      |   | 94        |   |      |   | 10      |   |      |   |      |   |   |
| Gasversorgung        Süddeutschland GmbH                  |   | 64        |   |      |   |      |   |      |   |      |   |    |   | 337       |   | 18        |   |   |
| Gruppo Distribuzione Petroli Srl                               |   | 20        |   |      |   |      |   |      |   |      |   |    |   | 111       |   |      |   |   |
| InAgip doo                                                     |   | 24        |   | 45        |   |      |   |      |   | 116       |   |    |   | 3         |   | 35        |   |   |
| Karachaganak Petròleum Operating BV                       |   | 72        |   | 207       |   |      |   | 874       |   | 380       |   | 25      |   |      |   | 12        |   |   |
| Mellitah        Oil & Gas BV                               |   | 10        |   | 121       |   |      |   |      |   | 329       |   |    |   | 2         |   | 4         |   |   |
| Petrobel Belayim Petroleum Co                                  |   |      |   | 77        |   |      |   |      |   | 181       |   |    |   |      |   |      |   |   |
| Raffineria        di Milazzo ScpA                              |   | 11        |   | 4         |   |      |   |      |   | 276       |   |    |   | 135       |   | 3         |   |   |
| Saipon Snc                                                     |   | 4         |   |      |   | 58        |   |      |   |      |   |    |   |      |   | 12        |   |   |
| Super        Octanos CA                                        |   |      |   | 24        |   |      |   | 286       |   |      |   |    |   |      |   |      |   |   |
| Supermetanol CA                                                |   |      |   | 5         |   |      |   | 90        |   |      |   |    |   |      |   |      |   |   |
| Trans        Austria Gasleitung GmbH                           |   | 8         |   | 78        |   |      |   | 60        |   | 153       |   |    |   |      |   | 64        |   |   |
| Transitgas AG                                                  |   |      |   | 5         |   |      |   |      |   | 1         |   | 64      |   |      |   |      |   |   |
| Unión        Fenosa Gas SA                                |   | 1         |   | 25        |   | 62        |   | 25        |   |      |   |    |   | 257       |   | 1         |   |   |
| Other (*)                                                      |   | 231       |   | 115       |   | 18        |   | 36        |   | 319       |   | 46      |   | 71        |   | 129       |   | 8      |
|                                                           |   | **655**   |   | **829**   |   | **6,253** |   | **1,473** |   | **2,783** |   | **148** |   | **1,657** |   | **684**   |   | **8**  |
| **Unconsolidated entities controlled by Eni**                  |   |      |   |      |   |      |   |      |   |      |   |    |   |      |   |      |   |   |
| Agip        Kazakhstan North Caspian Operating Co NV           |   | 144       |   | 166       |   |      |   |      |   | 720       |   | 11      |   | 1         |   | 367       |   | 10     |
| Eni BTC Ltd                                                    |   |      |   |      |   | 146       |   |      |   |      |   |    |   |      |   |      |   |   |
| Other (*)                                                      |   | 22        |   | 18        |   | 4         |   | 2         |   | 20        |   | 2       |   | 4         |   | 6         |   | 4      |
|                                                           |   | **166**   |   | **184**   |   | **150**   |   | **2**     |   | **740**   |   | **13**  |   | **5**     |   | **373**   |   | **14** |
|                                                           |   | **831**   |   | **1,013** |   | **6,403** |   | **1,475** |   | **3,523** |   | **161** |   | **1,662** |   | **1,057** |   | **22** |
| **Entities owned or controlled by the        Government**      |   |      |   |      |   |      |   |      |   |      |   |    |   |      |   |      |   |   |
| Ferrovie        dello Stato                                    |   | 4         |   |      |   |      |   |      |   |      |   |    |   | 417       |   | 2         |   |   |
| Gruppo Alitalia                                                |   | 153       |   | 12        |   |      |   | 13        |   | 223       |   |    |   | 941       |   | 380       |   |   |
| Gruppo        Enel                                             |   | 19        |   | 7         |   |      |   |      |   | 27        |   | 1       |   | 57        |   |      |   |   |
| GSE - Gestore Servizi Elettrici                                |   | 92        |   | 63        |   |      |   | 315       |   |      |   | 79      |   | 347       |   | 16        |   | 6      |
| Terna SpA                                                      |   | 33        |   | 35        |   |      |   | 14        |   | 128       |   |    |   | 12        |   | 83        |   | 10     |
| Other (*)                                                      |   | 28        |   | 72        |   |      |   | 33        |   | 88        |   | 5       |   | 72        |   | 2         |   | 1      |
|                                                           |   | **329**   |   | **189**   |   |      |   | **375**   |   | **466**   |   | **85**  |   | **1,846** |   | **483**   |   | **17** |
|                                                           |   | **1,160** |   | **1,202** |   | **6,403** |   | **1,850** |   | **3,989** |   | **246** |   | **3,508** |   | **1,540** |   | **39** |

|  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

Most significant transactions with joint ventures, associatesand non-consolidated subsidiaries concerned:

- transactions related to the planning and the construction        of the tracks for high speed/high capacity trains from        Milan to Bologna with ASG Scarl, CEPAV (Consorzio Eni per        l’Alta Velocità) Uno, and related guarantees;

F-95

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##### Table of Contents

- acquisition of refining services from Bayernoil        Raffineriegesellschaft mbH and Raffineria di Milazzo ScpA        in relation to incurred costs;
- supply of oil products to Bernhard Rosa Inh. Ingeborg        Plöchinger GmbH, Bronberger & Kessler und Gilg &        Schweiger GmbH, Fox Energy Srl, Gruppo Distribuzione        Petroli Srl and Raffineria di Milazzo ScpA on the basis        of prices referred to the quotations on international        markets of the main oil products, as they would be        conducted on an arm’s length basis;
- acquisition of FPSO from FPSO Mystras - Produção de        Petròleo Lda;
- acquisition of natural gas transport services outside        Italy from Blue Stream Pipeline Co BV, Trans Austria        Gasleitung GmbH and Transitgas AG;
- guarantees issued on behalf of CEPAV (Consorzio Eni per        l’Alta Velocità) Due in relation to contractual        commitments related to the execution of project planning        and realization;
- provision of specialized services in upstream activities        and payables for investment activities from Agip        Kazakhstan North Caspian Operating Co NV, Agiba Petroleum        Co, Eni Oil Co Ltd, InAgip doo, Karachaganak Petroleum        Operating BV, Mellitah Oil & Gas BV, Petrobel Belayim        Petroleum Co and, only for Karachaganak Petroleum        Operating BV supply of oil products; services are        invoiced on the basis of incurred costs;
- sale of natural gas to Altergaz SA and Gasversorgung        Süddeutschland GmbH;
- acquisition of petrochemical products from Supermetanol        CA and Super Octanos CA on the basis of prices referred        to the quotations on international markets of the main        products;
- performance guarantees given on behalf of Unión Fenosa        Gas SA in relation to contractual commitments related to        the results of operations;
- guarantees issued in relation to the construction of an        oil pipeline on behalf of Eni BTC Ltd.

Most significant transactions with entities owned orcontrolled by the Government concerned:

- sale of oil products with Alitalia and Ferrovie dello        Stato;
- sale and transportation of natural gas, the sale of fuel        oil and the sale and purchase of electricity and the        acquisition of electricity transmission service with        Enel;
- sale and purchase of electricity with GSE - Gestore        Servizi Elettrici;
- sale and purchase of electricity and the acquisition of        domestic electricity transmission service jointly with        Terna SpA.

Financing transactions with joint ventures, associates andnon-consolidated subsidiaries as well as with entities directlyand indirectly owned or controlled by the Government in the 2006,2007 and 2008, respectively, consisted of the following:

| (euro        million) |   | **Dec. 31, 2006** |   | **2006** |
|-----------------------|--------|-------------------|--------|----------|
|                  |   |                   |   |          |

| Name |    | Receivables |    | Payables |    | Guarantees |    | Charges |    | Gains |
|------|--------------|-------------|--------------|----------|--------------|------------|--------------|---------|--------------|-------|
|      |         |             |         |          |         |            |         |         |         |       |

| **Joint ventures and associates**             |   |    |   |    |   |      |   |   |   |   |
|-----------------------------------------------|--------|---------|--------|---------|--------|-----------|--------|--------|--------|--------|
| Blue        Stream Pipeline Co BV             |   |    |   | 3       |   | 794       |   | 4      |   | 26     |
| Raffineria di Milazzo ScpA                    |   |    |   |    |   | 57        |   |   |   |   |
| Spanish        Egyptian Gas Co SAE            |   |    |   |    |   | 323       |   |   |   |   |
| Trans Austria Gasleitung GmbH                 |   | 41      |   |    |   |      |   |   |   | 6      |
| Transmediterranean        Pipeline Co Ltd     |   | 147     |   |    |   |      |   |   |   | 11     |
| Other (*)                                     |   | 88      |   | 81      |   | 39        |   | 13     |   | 11     |
|                                          |   | **276** |   | **84**  |   | **1,213** |   | **17** |   | **54** |
| **Unconsolidated entities controlled by Eni** |   |    |   |    |   |      |   |   |   |   |
| Other (*)                                     |   | 95      |   | 25      |   | 2         |   | 1      |   | 4      |
|                                          |   | **95**  |   | **25**  |   | **2**     |   | **1**  |   | **4**  |
|                                          |   | **371** |   | **109** |   | **1,215** |   | **18** |   | **58** |

|  |   |  |   |  |   |  |   |  |   |  |
|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

F-96

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##### Table of Contents

| (euro        million) |   | **Dec. 31, 2007** |   | **2007** |
|-----------------------|--------|-------------------|--------|----------|
|                  |   |                   |   |          |

| Name |    | Receivables |    | Payables |    | Guarantees |    | Charges |    | Gains |    | Derivative financial        instruments |
|------|--------------|-------------|--------------|----------|--------------|------------|--------------|---------|--------------|-------|--------------|-----------------------------------------|
|      |         |             |         |          |         |            |         |         |         |       |         |                                         |

| **Joint ventures and associates**                         |   |    |   |    |   |    |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|---------|--------|---------|--------|---------|--------|--------|--------|--------|--------|--------|
| Blue        Stream Pipeline Co BV                         |   |    |   | 1       |   | 711     |   |   |   | 20     |   |   |
| Raffineria di Milazzo ScpA                                |   |    |   |    |   | 60      |   |   |   |   |   |   |
| Trans        Austria Gasleitung GmbH                      |   | 65      |   |    |   |    |   |   |   | 3      |   |   |
| Transmediterranean Pipeline Co Ltd                        |   | 97      |   |    |   |    |   |   |   | 9      |   |   |
| Other (*)                                                 |   | 108     |   | 120     |   | 52      |   | 19     |   | 11     |   |   |
|                                                      |   | **270** |   | **121** |   | **823** |   | **19** |   | **43** |   |   |
| **Unconsolidated        entities controlled by Eni**      |   |    |   |    |   |    |   |   |   |   |   |   |
| Other (*)                                                 |   | 114     |   | 26      |   | 1       |   | 1      |   | 6      |   |   |
|                                                      |   | **114** |   | **26**  |   | **1**   |   | **1**  |   | **6**  |   |   |
| **Entities owned or controlled by the        Government** |   |    |   |    |   |    |   |   |   |   |   |   |
| GSE -        Gestore Servizi Elettrici                    |   |    |   |    |   |    |   |   |   |   |   | 10     |
|                                                      |   |    |   |    |   |    |   |   |   |   |   | **10** |
|                                                      |   | **384** |   | **147** |   | **824** |   | **20** |   | **49** |   | **10** |

|  |   |  |   |  |   |  |   |  |   |  |   |  |
|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

 

| (euro        million) |   | **Dec. 31, 2008** |   | **2008** |
|-----------------------|--------|-------------------|--------|----------|
|                  |   |                   |   |          |

| Name |    | Receivables |    | Payables |    | Guarantees |    | Charges |    | Gains |    | Derivative financial        instruments |
|------|--------------|-------------|--------------|----------|--------------|------------|--------------|---------|--------------|-------|--------------|-----------------------------------------|
|      |         |             |         |          |         |            |         |         |         |       |         |                                         |

| **Joint ventures and associates**                         |   |    |   |    |   |    |   |   |   |   |   |   |
|-----------------------------------------------------------|--------|---------|--------|---------|--------|---------|--------|--------|--------|--------|--------|--------|
| Bayernoil        Raffineriegesellschaft mbH               |   | 131     |   |    |   |    |   |   |   |   |   |   |
| Blue Stream Pipeline Co BV                                |   |    |   |    |   | 752     |   |   |   | 14     |   |   |
| PetroSucre        SA                                      |   | 153     |   |    |   |    |   |   |   |   |   |   |
| Raffineria di Milazzo ScpA                                |   |    |   |    |   | 70      |   |   |   |   |   |   |
| Trans        Austria Gasleitung GmbH                      |   | 186     |   |    |   |    |   |   |   | 7      |   |   |
| Transmediterranean Pipeline Co Ltd                        |   | 103     |   |    |   |    |   |   |   | 6      |   |   |
| Other (*)                                                 |   | 123     |   | 124     |   | 27      |   | 16     |   | 9      |   |   |
|                                                      |   | **696** |   | **124** |   | **849** |   | **16** |   | **36** |   |   |
| **Unconsolidated        entities controlled by Eni**      |   |    |   |    |   |    |   |   |   |   |   |   |
| Other (*)                                                 |   | 115     |   | 38      |   | 1       |   | 1      |   | 6      |   |   |
|                                                      |   | **115** |   | **38**  |   | **1**   |   | **1**  |   | **6**  |   |   |
| **Entities owned or controlled by the        Government** |   |    |   |    |   |    |   |   |   |   |   |   |
| GSE -        Gestore Servizi Elettrici                    |   |    |   |    |   |    |   |   |   |   |   | 58     |
|                                                      |   |    |   |    |   |    |   |   |   |   |   | **58** |
|                                                      |   | **811** |   | **162** |   | **850** |   | **17** |   | **42** |   | **58** |

|  |   |  |   |  |   |  |   |  |   |  |   |  |
|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                             |
|--------------|--------------|---------------------------------------------------------------------------------------|
| (*)          |    | Each        individual amount included herein does not exceed euro 50        million. |

Most significant transactions with joint ventures, associatesand non-consolidated subsidiaries included:

- bank debt guarantee issued on behalf of Blue Stream        Pipeline Co BV and cash deposit at Eni’s financial        companies;
- bank debt guarantee issued on behalf of Raffineria di        Milazzo ScpA;
- financing loan to Bayernoil Raffineriegesellschaft mbH;
- receivable from PetroSucre SA following the contribution        of Corocoro activities, still to be defined, in the new        mixed company;
- the financing of the Austrian section of the gasline from        the Russian Federation to Italy and the construction of        natural gas transmission facilities and transport        services with Trans Austria Gasleitung GmbH and        Transmediterranean Pipeline Co Ltd, respectively.

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Most significant transactions with entities owned orcontrolled by the Government concerned the fair value ofderivative financial instruments included in prices ofelectricity related to sale/purchase transactions with GSE -Gestore Servizi Elettrici.

**Impact of transactions and positions with relatedparties on the balance sheet, net profit and cash flows**The impact of transactions and positions with relatedparties on the balance sheet, net profit and cash flows consistedof the following:

|   |   | **Dec. 31, 2006** |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |   |                   |

| (euro        million) |   | Total |   | Related parties |   | Impact % |   | Total |   | Related parties |   | Impact % |   | Total |   | Related parties |   | Impact % |
|-----------------------|--------|-------|--------|-----------------|--------|----------|--------|-------|--------|-----------------|--------|----------|--------|-------|--------|-----------------|--------|----------|
|                  |   |       |   |                 |   |          |   |       |   |                 |   |          |   |       |   |                 |   |          |

| Trade and other receivables                                 |   | 18,799 |   | 1,027  |   | 5.46   |   | 20,676 |   | 1,616  |   | 7.82   |   | 22,222 |   | 1,539 |   | 6.93  |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|-------|
| Other        current assets                                 |   | 855    |   | 4      |   | 0.47   |   | 1,080  |   |   |   |   |   | 2,349  |   | 59    |   | 2.51  |
| Other non-current financial assets                          |   | 805    |   | 136    |   | 16.89  |   | 923    |   | 87     |   | 9.43   |   | 1,134  |   | 356   |   | 31.39 |
| Other        non-current assets                             |   | 994    |   |   |   |   |   | 1,110  |   | 16     |   | 1.44   |   | 1,401  |   | 21    |   | 1.50  |
| Current financial liabilities                               |   | 3,400  |   | 92     |   | 2.71   |   | 7,763  |   | 131    |   | 1.69   |   | 6,359  |   | 153   |   | 2.41  |
| Trade and        other payables                             |   | 15,995 |   | 961    |   | 6.01   |   | 17,116 |   | 1,021  |   | 5.97   |   | 20,515 |   | 1,253 |   | 6.11  |
| Other liabilities                                           |   | 634    |   | 4      |   | 0.63   |   | 1,556  |   | 4      |   | 0.26   |   | 4,319  |   | 4     |   | 0.09  |
| Long-term        debt and current portion of long-term debt |   | 8,299  |   | 17     |   | 0.20   |   | 12,067 |   | 16     |   | 0.13   |   | 14,478 |   | 9     |   | 0.06  |
| Other non-current liabilities                               |   | 418    |   | 56     |   | 13.40  |   | 2,031  |   | 57     |   | 2.81   |   | 2,538  |   | 53    |   | 2.09  |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

The impact of transactions with related parties on the profitand loss accounts consisted of the following:

|   |   | **Dec. 31, 2006** |   | **Dec. 31, 2007** |   | **Dec. 31, 2008** |
|--------|--------|-------------------|--------|-------------------|--------|-------------------|
|   |   |                   |   |                   |   |                   |

| (euro        million) |   | Total |   | Related parties |   | Impact % |   | Total |   | Related parties |   | Impact % |   | Total |   | Related parties |   | Impact % |
|-----------------------|--------|-------|--------|-----------------|--------|----------|--------|-------|--------|-----------------|--------|----------|--------|-------|--------|-----------------|--------|----------|
|                  |   |       |   |                 |   |          |   |       |   |                 |   |          |   |       |   |                 |   |          |

| Net sales from operations                              |   | 86,105 |   |   | 3,974  |   |   | 4.62 |   |   | 87,256 |   |   | 4,198  |   |   | 4.81  |   |   | 108,148 |   |   | 5,048 |   |   | 4.67 |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|--------|--------|--------|--------|--------|--------|--------|-------|--------|--------|---------|--------|--------|-------|--------|--------|------|--------|
| Other        income and revenues                       |   | 783    |   |   |   |   |   | ..   |   |   | 827    |   |   |   |   |   | ..    |   |   | 720     |   |   | 39    |   |   | 5.42 |   |
| Purchases, services and other                          |   | 57,490 |   |   | 2,720  |   |   | 4.73 |   |   | 58,179 |   |   | 3,777  |   |   | 6.49  |   |   | 76,408  |   |   | 6,298 |   |   | 8.24 |   |
| Financial        income                                |   | 3,749  |   |   | 58     |   |   | 1.55 |   |   | 4,445  |   |   | 49     |   |   | 1.10  |   |   | 7,985   |   |   | 42    |   |   | 0.53 |   |
| Financial expense                                      |   | (3,971 | )      |   | (18    | )      |   | 0.45 |   |   | (4,554 | )      |   | (20    | )      |   | 0.44  |   |   | (8,198  | )      |   | (17   | )      |   | 0.21 |   |
| Gain        (loss) on derivative financial instruments |   | 383    |   |   |   |   |   | ..   |   |   | 26     |   |   | 10     |   |   | 38.46 |   |   | (551    | )      |   | 58    |   |   | ..   |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

Transactions with related parties concerned the ordinarycourse of Eni’s business and were mainly conducted on anarm’s length basis.

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Main cash flows with related parties were as follows:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Revenues and other income                                        |   | 3,974     |   |   | 4,198    |   |   | 5,087      |   |
|------------------------------------------------------------------|--------|-----------|--------|--------|----------|--------|--------|------------|--------|
| Costs and        other expenses                                  |   | (2,720    | )      |   | (3,777   | )      |   | (6,298     | )      |
| Net change in trade and other receivables and        liabilities |   | 162       |   |   | (492     | )      |   | 351        |   |
| Dividends        and net interests                               |   | 790       |   |   | 620      |   |   | 798        |   |
| **Net cash provided from operating activities**                  |   | **2,206** |   |   | **549**  |   |   | **(62**    | **)**  |
| Capital        expenditures in tangible and intangible assets    |   | (733      | )      |   | (779     | )      |   | (2,022     | )      |
| Investments                                                      |   | (20       | )      |   | 8        |   |   |       |   |
| Change in        accounts payable in relation to investments     |   | (276      | )      |   | (8       | )      |   | 27         |   |
| Change in financial receivables                                  |   | 343       |   |   | (43      | )      |   | 397        |   |
| **Net        cash used in investing activities**                 |   | **(686**  | **)**  |   | **(822** | **)**  |   | **(1,598** | **)**  |
| Change in financial liabilities                                  |   | (57       | )      |   | 20       |   |   | 14         |   |
| **Net        cash used in financing activities**                 |   | **(57**   | **)**  |   | **20**   |   |   | **14**     |   |
| **Total financial flows to related parties**                     |   | **1,463** |   |   | **(253** | **)**  |   | **(1,646** | **)**  |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

The impact of cash flows with related parties consisted of thefollowing:

|   |   | **2006** |   | **2007** |   | **2008** |
|--------|--------|----------|--------|----------|--------|----------|
|   |   |          |   |          |   |          |

| (euro        million) |   | Total |   | Related parties |   | Impact % |   | Total |   | Related parties |   | Impact % |   | Total |   | Related parties |   | Impact % |
|-----------------------|--------|-------|--------|-----------------|--------|----------|--------|-------|--------|-----------------|--------|----------|--------|-------|--------|-----------------|--------|----------|
|                  |   |       |   |                 |   |          |   |       |   |                 |   |          |   |       |   |                 |   |          |

| Cash provided from operating activities  |   | 17,001 |   |   | 2,206 |   |   | 12.98 |   |   | 15,517  |   |   | 549  |   |   | 3.54 |   |   | 21,801  |   |   | (62    | )      |   | ..   |   |
|------------------------------------------|--------|--------|--------|--------|-------|--------|--------|-------|--------|--------|---------|--------|--------|------|--------|--------|------|--------|--------|---------|--------|--------|--------|--------|--------|------|--------|
| Cash used        in investing activities |   | (7,051 | )      |   | (686  | )      |   | 9.73  |   |   | (20,097 | )      |   | (822 | )      |   | 4.09 |   |   | (16,958 | )      |   | (1,598 | )      |   | 9.42 |   |
| Cash used in financing activities        |   | (7,097 | )      |   | (57   | )      |   | 0.80  |   |   | 2,909   |   |   | 20   |   |   | 0.69 |   |   | (5,025  | )      |   | 14     |   |   | ..   |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

**38 Significant non-recurring events and operations**Non-recurring incomes (charges) consisted of thefollowing:

| (euro million) |   | **2006** |   | **2007** |   | **2008** |
|----------------|--------|----------|--------|----------|--------|----------|
|           |   |          |   |          |   |          |

| Curtailment of post-retirement benefits for        Italian employees                         |   |     |   |   | 83     |   |   |    |   |
|----------------------------------------------------------------------------------------------|--------|----------|--------|--------|--------|--------|--------|---------|--------|
| Risk        provisions for proceedings against Antitrust authorities                         |   | (184     | )      |   | (130   | )      |   | (21     | )      |
| Risk provisions for proceedings against the        Italian Authority for Electricity and Gas |   | (55      | )      |   | 39     |   |   |    |   |
|                                                                                         |   | **(239** | **)**  |   | **(8** | **)**  |   | **(21** | **)**  |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

Non-recurring income related to a gain deriving from thecurtailment of the provisions accrued by Italian companies foremployee termination indemnities ("TFR") following thechanges introduced by Italian Budget Law for 2007 and relateddecrees (euro 83 million). Non recurring charges for 2007concerned risk provisions related to ongoing antitrustproceedings against the European Antitrust authorities (euro 130million) in the fields of paraffin and elastomers.

In 2006 a risk provision was made in connection with aproceeding against the Italian Antitrust authority regarding thefield of supplies of jet fuel (euro 109 million). In addition arisk provision was made for an inquiry before the EuropeanAntitrust authorities in the field of elastomers (euro 75million). In 2006 certain fines were imposed by the Authority forElectricity and Gas regarding an inquiry relating to the use ofstorage capacity in thermal year 2005-2006 (euro 45 million) andan inquiry relating to an information requirement on natural gassupplying prices (euro 10 million).

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**39 Positions or transactions derivingfrom atypical and/or unusual operations**In 2006, 2007 and in 2008 no transactions deriving fromatypical and/or unusual operations were reported.

**Recent developments**

On April 7, 2009 Gazprom exercised its call option to purchasea 20% interest in OAO Gazprom Neft held by Eni followingagreements between the two partners. The 20% interest in GazpromNeft was acquired by Eni on April 4, 2007 as part of a bidprocedure for the assets of bankrupt Russian company Yukos. Theexercise price of the call option is equal to the bid price (U.S.$ 3.7 billion) as adjusted by subtracting dividends distributedand adding the contractual yearly remuneration of 9.4% on thecapital employed and related financing expenses. At the sametime, Eni and Gazprom signed new cooperation agreements targetingcertain development projects to be conducted jointly in Russiaand other countries of interest. Terms of the call option grantedto Gazprom to purchase a 51% interest in the share capital of OOOSeverEnergia, which owns 100% of the three abovementioned Russiancompanies engaging in gas development, are currently under reviewby Eni, Enel and Gazprom.

On March 19, 2009, a mandatory tender offer on the minoritiesof Distrigas was finalized. Shareholders representing 41.61% ofthe share capital of Distrigas tendered 292,390 shares onEni’s offer. Publigaz Scrl tendered its entire interest(31.25%). The transaction has been accounted in Eni financialstatements as at March 31, 2009. On April 8, 2009 Eni paid tothose shareholders cash consideration amounting to euro 1,991million. Following the tender offer, Eni owns 98.86% of the sharecapital of Distrigas. The squeeze-out on the residual 1.14% ofthe share capital has been completed early in May. ConsequentlyEni holds all the shares of Distrigas except for one sharebelonging to the Belgian State with special powers. Distrigasshares has been delisted from Euronext Brussels. For furtherdetails on this transaction see "Item 4 – Gas &Power".

On February 12, 2009, Eni’s Board of Directors approvedthe divestment of 100% of Italgas SpA and Stoccaggi Gas ItaliaSpA (Stogit) to Snam Rete Gas (50.03% owned by Eni) for totalcash consideration of euro 4,720 million (euro 3,070 million andeuro 1,650 million, respectively). The transaction will befinanced by Snam Rete Gas through: (i) a rights issue up for amaximum of euro 3.5 billion (Eni has already committed tosubscribe its relative share of the rights issue); and (ii) newmedium to long-term financing for euro 1.3 billion. The mainimpacts expected on Eni's consolidated financial statements whenthe transaction closes will be: (i) a decrease of euro 1.5billion in net borrowings and a corresponding increase in totalequity as a consequence of the pro-quota subscription of the SnamRete Gas capital increase by the minority shareholders; and (ii)a decrease in Eni’s net profit equal to 45% of the aggregatenet profit of Italgas and Stogit, with a corresponding increasein net profit attributable to minorities. From an industrialperspective the transaction, expected to close in July 2009, willcreate significant synergies in the regulated businesses segmentand maximize the value of Italgas and Stogit due to the highervisibility of regulated businesses as a part of Snam Rete Gas.For further details on this transaction see "Item 4 –Gas & Power".

By the end of May 2008, based on the approval of the full yeardividend proposal made by the Company’s Annual GeneralShareholders Meeting on April 30, 2009, Eni expects to pay thebalance of the dividend for fiscal year 2008 amounting to euro0.65 per share. Total cash out is estimated at euro 2.36 billion.

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**Supplemental oil and gas information(unaudited)**The following information pursuant to"International Financial Reporting Standards" (IFRS) ispresented in accordance with Statement of Financial AccountingStandards No. 69, "Disclosures about Oil & Gas ProducingActivities". Amounts related to minority interests are notsignificant.*Capitalized costs*Capitalized costs represent the total expenditures for proved andunproved mineral interests and related support equipment andfacilities utilized in oil and gas exploration and productionactivities, together with related accumulated depreciation,depletion and amortization. Capitalized costs by geographicalarea consist of the following:

| (euro        million) |   | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|-----------------------|--------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|---------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|
|                  |   |           |   |                  |   |                 |   |               |   |                     |   |                   |   |                                     |   |                                            |

| **December 31, 2007**                                       |   |       |   |   |       |   |   |       |   |   |      |   |   |      |   |   |       |   |   |        |   |   |      |   |
|-------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|-------------|--------|--------|-----------|--------|
| Proved        mineral interests                             |   | 10,571     |   |   | 8,118      |   |   | 8,506      |   |   | 8,672     |   |   | 1,447     |   |   | 7,718      |   |   | **45,032**  |   |   | 790       |   |
| Unproved mineral interests                                  |   | 32         |   |   | 120        |   |   | 1,030      |   |   | 330       |   |   | 35        |   |   | 2,582      |   |   | **4,129**   |   |   | 1,089     |   |
| Support        equipment and facilities                     |   | 279        |   |   | 1,125      |   |   | 443        |   |   | 16        |   |   | 41        |   |   | 59         |   |   | **1,963**   |   |   | 10        |   |
| Incomplete wells and other                                  |   | 726        |   |   | 562        |   |   | 1,078      |   |   | 75        |   |   | 1,852     |   |   | 808        |   |   | **5,101**   |   |   | 112       |   |
| **Gross        capitalized costs**                          |   | **11,608** |   |   | **9,925**  |   |   | **11,057** |   |   | **9,093** |   |   | **3,375** |   |   | **11,167** |   |   | **56,225**  |   |   | **2,001** |   |
| Accumulated depreciation, depletion and        amortization |   | (7,440     | )      |   | (4,960     | )      |   | (5,340     | )      |   | (5,670    | )      |   | (445      | )      |   | (4,909     | )      |   | **(28,764** | **)**  |   | (345      | )      |
| **Net        capitalized costs******(a) (b)                 |   | **4,168**  |   |   | **4,965**  |   |   | **5,717**  |   |   | **3,423** |   |   | **2,930** |   |   | **6,258**  |   |   | **27,461**  |   |   | **1,656** |   |
| **December 31, 2008**                                       |   |       |   |   |       |   |   |       |   |   |      |   |   |      |   |   |       |   |   |        |   |   |      |   |
| Proved mineral interests                                    |   | 10,772     |   |   | 10,116     |   |   | 11,368     |   |   | 7,499     |   |   | 2,130     |   |   | 8,954      |   |   | **50,839**  |   |   | 813       |   |
| Unproved mineral interests                                  |   | 32         |   |   | 638        |   |   | 2,267      |   |   | 316       |   |   | 1,051     |   |   | 2,908      |   |   | **7,212**   |   |   | 928       |   |
| Support equipment and facilities                            |   | 283        |   |   | 1,205      |   |   | 520        |   |   | 16        |   |   | 51        |   |   | 71         |   |   | **2,146**   |   |   | 14        |   |
| Incomplete wells and other                                  |   | 1,374      |   |   | 1,006      |   |   | 1,443      |   |   | 159       |   |   | 2,631     |   |   | 1,797      |   |   | **8,410**   |   |   | 267       |   |
| **Gross capitalized costs**                                 |   | **12,461** |   |   | **12,965** |   |   | **15,598** |   |   | **7,990** |   |   | **5,863** |   |   | **13,730** |   |   | **68,607**  |   |   | **2,022** |   |
| Accumulated depreciation, depletion and        amortization |   | (7,943     | )      |   | (6,318     | )      |   | (7,027     | )      |   | (5,132    | )      |   | (858      | )      |   | (6,932     | )      |   | **(34,210** | **)**  |   | (441      | )      |
| **Net capitalized costs**(a) (b)                            |   | **4,518**  |   |   | **6,647**  |   |   | **8,571**  |   |   | **2,858** |   |   | **5,005** |   |   | **6,798**  |   |   | **34,397**  |   |   | **1,581** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| i   | i | i                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|-----|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | i | The amounts        include net capitalized financial charges totaling euro        441 million in 2007 and euro 537 million in 2008.                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (b) | i | The amounts        do not include costs associated with exploration        activities which are capitalized in order to reflect        their investment nature and amortized in full when        incurred. The application of the "Successful Effort        Method" would have led to an increase in net        capitalized costs of euro 2,547 million in 2007 and euro        3,308 million in 2008 for the consolidated companies and        of euro 94 million in 2007 and euro 48 million in 2008        for joint ventures and associates. |

| (1) | i | Eni's        capitalized costs of the Kashagan field are determined        based on Eni's share of 16.81% as of December 31, 2008        and 18.52% in the previous year.                                                                     |
|-----|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | i | The amounts        of joint ventures and associates as at December 31, 2007        and December 31, 2008 include 60% of the three Russian        companies former Yukos purchased in 2007, for which        Gazprom has a call option of 51%. |

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*Costs incurred*Costs incurred represent amounts both capitalized and expensed inconnection with oil and gas producing activities. Costs incurredby geographical area consist of the following:

| (euro        million) |   | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|-----------------------|--------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|
|                  |   |           |   |                  |   |                 |   |               |   |                            |   |                   |   |                                     |   |                                            |

| **2006**                                |   |      |   |      |   |      |   |      |   |      |   |      |   |       |   |      |
|-----------------------------------------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|--------|------------|--------|-----------|
| Proved        property acquisitions     |   | 139       |   | 10        |   |      |   |      |   |      |   |      |   | **149**    |   |      |
| Unproved property acquisitions          |   |      |   |      |   |      |   |      |   |      |   | 3         |   | **3**      |   |      |
| Exploration                             |   | 128       |   | 270       |   | 471       |   | 174       |   | 25        |   | 280       |   | **1,348**  |   | 26        |
| Development (a)                         |   | 1,120     |   | 892       |   | 956       |   | 478       |   | 595       |   | 766       |   | **4,807**  |   | 31        |
| **Total        costs incurred**         |   | **1,387** |   | **1,172** |   | **1,427** |   | **652**   |   | **620**   |   | **1,049** |   | **6,307**  |   | **57**    |
| **2007**                                |   |      |   |      |   |      |   |      |   |      |   |      |   |       |   |      |
| Proved        property acquisitions (b) |   |      |   | 11        |   | 451       |   |      |   |      |   | 1,395     |   | **1,857**  |   | 187       |
| Unproved property acquisitions (b)      |   |      |   |      |   | 510       |   |      |   |      |   | 1,417     |   | **1,927**  |   | 1,086     |
| Exploration        (b)                  |   | 104       |   | 380       |   | 298       |   | 193       |   | 36        |   | 1,181     |   | **2,192**  |   | 42        |
| Development (a) (b)                     |   | 320       |   | 1,047     |   | 1,425     |   | 518       |   | 744       |   | 1,185     |   | **5,239**  |   | 156       |
| **Total        costs incurred**         |   | **424**   |   | **1,438** |   | **2,684** |   | **711**   |   | **780**   |   | **5,178** |   | **11,215** |   | **1,471** |
| **2008**                                |   |      |   |      |   |      |   |      |   |      |   |      |   |       |   |      |
| Proved property acquisitions (b)        |   |      |   | 626       |   | 413       |   |      |   | 173       |   | 83        |   | **1,295**  |   |      |
| Unproved property acquisitions (b)      |   |      |   | 384       |   | 655       |   | 33        |   | 647       |   |      |   | **1,719**  |   |      |
| Exploration (b)                         |   | 135       |   | 421       |   | 581       |   | 214       |   | 144       |   | 719       |   | **2,214**  |   | 48        |
| Development (a) (b)                     |   | 644       |   | 1,388     |   | 1,884     |   | 850       |   | 1,208     |   | 1,593     |   | **7,567**  |   | 163       |
| **Total costs incurred**                |   | **779**   |   | **2,819** |   | **3,533** |   | **1,097** |   | **2,172** |   | **2,395** |   | **12,795** |   | **211**   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| i   | i | i                                                                                                                                                                                                                                           |
|-----|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) | i | Eni’s        costs incurred of the Kashagan field are determined based        on Eni’s share of 16.81% as of December 31, 2008 and        18.52% in the previous year.                                                            |
| (2) | i | The amounts        of joint ventures and associates for December 31, 2007        and December 31, 2008 include 60% of the three Russian        companies former Yukos purchased in 2007, for which        Gazprom has a call option of 51%. |
| (a) | i | Includes the        abandonment costs of the assets for euro 1,170 million in        2006, euro 173 million in 2007 and euro 628 million in        2008 and euro 16 million for joint ventures and        associates.                       |
| (b) | i | Of which        business combination:                                                                                                                                                                                                       |

| (euro        million) |   | **Italy** |   | **North        Africa** |   | **West        Africa** |   | **North        Sea** |   | **Caspian        Area** |   | **Rest        of World** |   | **Total        consolidated subsidiaries** |   | **Total joint        ventures and associates** |
|-----------------------|--------|-----------|--------|-------------------------|--------|------------------------|--------|----------------------|--------|-------------------------|--------|--------------------------|--------|--------------------------------------------|--------|------------------------------------------------|
|                  |   |           |   |                         |   |                        |   |                      |   |                         |   |                          |   |                                            |   |                                                |

| **2007**                            |   |   |   |    |   |      |   |   |   |      |   |      |   |      |   |      |
|-------------------------------------|--------|--------|--------|---------|--------|-----------|--------|--------|--------|-----------|--------|-----------|--------|-----------|--------|-----------|
| Proved        property acquisitions |   |   |   |    |   | 451       |   |   |   |      |   | 1,395     |   | **1,846** |   | 187       |
| Unproved property acquisitions      |   |   |   |    |   | 510       |   |   |   |      |   | 1,334     |   | **1,844** |   | 1,086     |
| Exploration                         |   |   |   |    |   | 59        |   |   |   |      |   | 474       |   | **533**   |   |      |
| Development                         |   |   |   |    |   | 10        |   |   |   |      |   | 345       |   | **355**   |   | 101       |
| **Total**                           |   |   |   |    |   | **1,030** |   |   |   |      |   | **3,548** |   | **4,578** |   | **1,374** |
| **2008**                            |   |   |   |    |   |      |   |   |   |      |   |      |   |      |   |      |
| Proved property acquisitions        |   |   |   |    |   | 298       |   |   |   | 173       |   | 83        |   | **554**   |   |      |
| Unproved property acquisitions      |   |   |   | 384     |   | 560       |   | 33     |   | 647       |   |      |   | **1,624** |   |      |
| Exploration                         |   |   |   | 23      |   | 115       |   |   |   | 116       |   | 42        |   | **296**   |   |      |
| Development                         |   |   |   | 132     |   | 4         |   | 52     |   | 156       |   | 77        |   | **421**   |   |      |
| **Total**                           |   |   |   | **539** |   | **977**   |   | **85** |   | **1,092** |   | **202**   |   | **2,895** |   |      |

*Results of operations from oil and gas producingactivities*Results of operations from oil and gas producing activities,including gas storage services used to modulate the seasonalvariation of demand, represent only those revenues and expensesdirectly associated with such activities, including operatingoverheads. These amounts do not include any allocation ofinterest expense or general corporate overhead and, therefore,are not necessarily indicative of the contributions toconsolidated net earnings of Eni. Related income taxes arecomputed by applying the local income tax rates to the pre-taxincome from producing activities. Eni is a party to certainProduction Sharing Agreements (PSAs), whereby a portion ofEni’s share of oil and gas production is withheld and soldby its joint venture partners which are state-owned entities,with proceeds being remitted to the state in satisfaction ofEni’s PSA-related tax liabilities. Revenue and income taxesinclude such taxes owed by Eni but paid by state-owned entitiesout of Eni’s share of oil and gas production.

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Results of operations from oil and gas producingactivities by geographical area consist of the following:

| (euro        million) |   | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|-----------------------|--------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|
|                  |   |           |   |                  |   |                 |   |               |   |                            |   |                   |   |                                     |   |                                            |

| **2006**                                                    |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |       |   |   |    |   |
|-------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|---------|--------|
| **Revenues**                                                |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |       |   |   |    |   |
| Sales to consolidated entities                              |   | 3,601     |   |   | 4,185     |   |   | 4,817     |   |   | 3,295     |   |   | 261       |   |   | 712       |   |   | **16,871** |   |   |    |   |
| Sales to        third parties                               |   | 184       |   |   | 3,012     |   |   | 967       |   |   | 983       |   |   | 721       |   |   | 1,873     |   |   | **7,740**  |   |   | 120     |   |
| **Total revenues**                                          |   | **3,785** |   |   | **7,197** |   |   | **5,784** |   |   | **4,278** |   |   | **982**   |   |   | **2,585** |   |   | **24,611** |   |   | **120** |   |
| Operation        costs                                      |   | (249      | )      |   | (496      | )      |   | (475      | )      |   | (481      | )      |   | (147      | )      |   | (191      | )      |   | **(2,039** | **)**  |   | (18     | )      |
| Production taxes                                            |   | (181      | )      |   | (95       | )      |   | (475      | )      |   |      |   |   |      |   |   | (82       | )      |   | **(833**   | **)**  |   | (3      | )      |
| Exploration        expenses                                 |   | (137      | )      |   | (273      | )      |   | (186      | )      |   | (160      | )      |   | (25       | )      |   | (293      | )      |   | **(1,074** | **)**  |   | (26     | )      |
| D.D. & A. and provision for abandonment        (a)      |   | (457      | )      |   | (795      | )      |   | (737      | )      |   | (684      | )      |   | (80       | )      |   | (895      | )      |   | **(3,648** | **)**  |   | (43     | )      |
| Other        income and (expenses)                          |   | (315      | )      |   | (569      | )      |   | (190      | )      |   | 57        |   |   | (89       | )      |   | (283      | )      |   | **(1,389** | **)**  |   | 8       |   |
| **Pretax income from producing activities**                 |   | **2,446** |   |   | **4,969** |   |   | **3,721** |   |   | **3,010** |   |   | **641**   |   |   | **841**   |   |   | **15,628** |   |   | **38**  |   |
| Income        taxes                                         |   | (909      | )      |   | (2,980    | )      |   | (2,133    | )      |   | (1,840    | )      |   | (223      | )      |   | (381      | )      |   | **(8,466** | **)**  |   | (31     | )      |
| **Results of operations from E&P activities**(b)        |   | **1,537** |   |   | **1,989** |   |   | **1,588** |   |   | **1,170** |   |   | **418**   |   |   | **460**   |   |   | **7,162**  |   |   | **7**   |   |
| **2007**                                                    |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |       |   |   |    |   |
| **Revenues**                                                |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |       |   |   |    |   |
| Sales to        consolidated entities                       |   | 3,171     |   |   | 3,000     |   |   | 4,439     |   |   | 3,125     |   |   | 296       |   |   | 512       |   |   | **14,543** |   |   |    |   |
| Sales to third parties                                      |   | 163       |   |   | 4,793     |   |   | 693       |   |   | 755       |   |   | 833       |   |   | 2,260     |   |   | **9,497**  |   |   | 176     |   |
| **Total        revenues**                                   |   | **3,334** |   |   | **7,793** |   |   | **5,132** |   |   | **3,880** |   |   | **1,129** |   |   | **2,772** |   |   | **24,040** |   |   | **176** |   |
| Operation costs                                             |   | (248      | )      |   | (542      | )      |   | (499      | )      |   | (579      | )      |   | (142      | )      |   | (271      | )      |   | **(2,281** | **)**  |   | (27     | )      |
| Production        taxes                                     |   | (188      | )      |   | (91       | )      |   | (473      | )      |   |      |   |   |      |   |   | (28       | )      |   | **(780**   | **)**  |   | (6      | )      |
| Exploration expenses                                        |   | (108      | )      |   | (385      | )      |   | (291      | )      |   | (193      | )      |   | (36       | )      |   | (764      | )      |   | **(1,777** | **)**  |   | (42     | )      |
| D.D. &        A. and provision for abandonment (a)      |   | (499      | )      |   | (768      | )      |   | (685      | )      |   | (729      | )      |   | (76       | )      |   | (989      | )      |   | **(3,746** | **)**  |   | (51     | )      |
| Other income and (expenses)                                 |   | (283      | )      |   | (627      | )      |   | (297      | )      |   | (45       | )      |   | (72       | )      |   | (243      | )      |   | **(1,567** | **)**  |   | (18     | )      |
| **Pretax        income from producing activities**          |   | **2,008** |   |   | **5,380** |   |   | **2,887** |   |   | **2,334** |   |   | **803**   |   |   | **477**   |   |   | **13,889** |   |   | **32**  |   |
| Income taxes                                                |   | (746      | )      |   | (3,102    | )      |   | (1,820    | )      |   | (1,419    | )      |   | (284      | )      |   | (241      | )      |   | **(7,612** | **)**  |   | (49     | )      |
| **Results        of operations from E&P activities**(b) |   | **1,262** |   |   | **2,278** |   |   | **1,067** |   |   | **915**   |   |   | **519**   |   |   | **236**   |   |   | **6,277**  |   |   | **(17** | )      |
| **2008**                                                    |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |       |   |   |    |   |
| **Revenues**                                                |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |      |   |   |       |   |   |    |   |
| Sales to consolidated entities                              |   | 3,956     |   |   | 2,622     |   |   | 5,013     |   |   | 3,691     |   |   | 360       |   |   | 629       |   |   | **16,271** |   |   |    |   |
| Sales to third parties                                      |   | 126       |   |   | 7,286     |   |   | 1,471     |   |   | 121       |   |   | 1,288     |   |   | 2,928     |   |   | **13,220** |   |   | 265     |   |
| **Total revenues**                                          |   | **4,082** |   |   | **9,908** |   |   | **6,484** |   |   | **3,812** |   |   | **1,648** |   |   | **3,557** |   |   | **29,491** |   |   | **265** |   |
| Operation costs                                             |   | (260      | )      |   | (528      | )      |   | (609      | )      |   | (515      | )      |   | (173      | )      |   | (326      | )      |   | **(2,411** | **)**  |   | (34     | )      |
| Production taxes                                            |   | (195      | )      |   | (32       | )      |   | (616      | )      |   |      |   |   |      |   |   | (35       | )      |   | **(878**   | **)**  |   | (53     | )      |
| Exploration expenses                                        |   | (135      | )      |   | (425      | )      |   | (529      | )      |   | (215      | )      |   | (57       | )      |   | (697      | )      |   | **(2,058** | **)**  |   | (48     | )      |
| D.D. & A. and provision for abandonment (a)             |   | (551      | )      |   | (1,120    | )      |   | (1,115    | )      |   | (782      | )      |   | (331      | )      |   | (1,490    | )      |   | **(5,389** | **)**  |   | (84     | )      |
| Other income and (expenses)                                 |   | (420      | )      |   | (936      | )      |   | (279      | )      |   | (63       | )      |   | (286      | )      |   | (270      | )      |   | **(2,254** | **)**  |   | (15     | )      |
| **Pretax income from producing activities**                 |   | **2,521** |   |   | **6,867** |   |   | **3,336** |   |   | **2,237** |   |   | **801**   |   |   | **739**   |   |   | **16,501** |   |   | **31**  |   |
| Income taxes                                                |   | (924      | )      |   | (4,170    | )      |   | (2,262    | )      |   | (1,581    | )      |   | (315      | )      |   | (435      | )      |   | **(9,687** | **)**  |   | (49     | )      |
| **Results of operations from E&P activities******(b)    |   | **1,597** |   |   | **2,697** |   |   | **1,074** |   |   | **656**   |   |   | **486**   |   |   | **304**   |   |   | **6,814**  |   |   | **(18** | )      |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| i   | i | i                                                                                                                                                                                                                                                                                                                                                                                           |
|-----|---|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a) | i | Includes        asset impairments amounting to euro 130 million in 2006,        euro 91 million in 2007 and euro 770 million in 2008.                                                                                                                                                                                                                                                       |
| (b) | i | The        "Successful Effort Method" application would        have led to an increase in results of operations of euro        220 million in 2006, euro 438 million in 2007 and euro        408 million in 2008 for the consolidated companies and of        euro 15 million in 2006, euro 26 million in 2007 and no        variation in 2008 for joint ventures and associates. |

| (1) | i | Eni's results        of operations of the Kashagan field are determined based        on Eni’s share of 16.81% as of December 31, 2008 and        18.52% in the previous year.                                                                    |
|-----|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | i | The amounts        of joint ventures and associates for December 31, 2007        and December 31, 2008 include 60% of the three Russian        companies formerly part of Yukos purchased in 2007, for        which Gazprom has a call option of 51%. |

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*Average sale prices and production costs per unit ofproduction*

| (euro        million) | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian Area** |   | **Rest of World** |   | **Total** |
|-----------------------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|------------------|--------|-------------------|--------|-----------|
|                  |           |   |                  |   |                 |   |               |   |                  |   |                   |   |           |

| **2006**                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Average sales        prices             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and condensates per BBL             |   | ($)    |   | 55.22  |   | 60.99  |   | 61.55  |   | 62.18  |   | 53.18  |   | 57.15  |   | 60.09  |
| Natural gas.        per KCF             |   |   |   | 8.23   |   | 4.17   |   | 1.05   |   | 6.89   |   | 0.39   |   | 5.09   |   | 5.29   |
| Average production costs per BOE        |   |   |   | 6.36   |   | 3.87   |   | 9.02   |   | 6.03   |   | 5.02   |   | 4.52   |   | 5.79   |
| **2007**                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average sales prices                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and        condensates per BBL      |   | ($)    |   | 62.47  |   | 67.86  |   | 69.77  |   | 69.40  |   | 59.34  |   | 68.63  |   | 67.70  |
| Natural gas. per KCF                    |   |   |   | 8.58   |   | 4.60   |   | 1.21   |   | 6.53   |   | 0.41   |   | 5.53   |   | 5.42   |
| Average        production costs per BOE |   |   |   | 7.89   |   | 4.22   |   | 11.53  |   | 8.56   |   | 4.90   |   | 5.33   |   | 6.90   |
| **2008**(a)                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average sales prices                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Oil and condensates per BBL             |   | ($)    |   | 84.87  |   | 84.71  |   | 91.58  |   | 71.90  |   | 80.43  |   | 82.06  |   | 84.05  |
| Natural gas. per KCF                    |   |   |   | 13.06  |   | 7.14   |   | 1.50   |   | 10.21  |   | 0.53   |   | 7.56   |   | 8.01   |
| Average production costs per BOE        |   |   |   | 9.40   |   | 3.66   |   | 15.25  |   | 8.99   |   | 5.79   |   | 6.92   |   | 7.77   |
|                                    |   |   |   |        |   |        |   |        |   |        |   |        |   |        |   |        |

|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)    |   | In 2008        Eni’s liquid realizations amounted to $84.05 per        barrel and were reduced by approximately $4.13 per barrel        due to the settlement of certain commodity derivatives        relating to the sale of 46 mmBBL in the year. This was        part of a derivative transaction the Company entered into        to hedge exposure to variability in future cash flows        expected from the sale of a portion of the Company’s        proved reserves for an original amount of approximately        125.7 mmBBL in the 2008-2011 period, decreasing to 79.7        mmBBL by the end of December 2008. |

*Oil and natural gas reserves*Proved oil and gas reserves are the estimated quantities of crudeoil, natural gas and natural gas liquids which geological andengineering data demonstrate with reasonable certainty to berecoverable in future years from known reservoirs undertechnical, contractual, economic and operating conditionsexisting at the time. Prices include consideration of changes inexisting prices provided only by contractual arrangements, butnot of increases based upon future conditions.

Net proved reserves exclude royalties and interests owned byothers.

Proved developed oil and gas reserves are proved reserves thatcan be estimated to be recovered through existing wells,equipment and operating methods.

Proved undeveloped oil and gas reserves are reserves that areexpected to be recovered from new wells on undrilled acreage, orfrom existing wells where a relatively major expenditure isrequired for completion.

Additional oil and gas reserves expected to be obtainedthrough the application of fluid injection or other improvedrecovery techniques for supplementing natural forces andmechanisms of primary recovery are included as proved developedreserves only after testing by a pilot project or after theoperation of an installed program has confirmed, throughproduction response, that increased recovery will be achieved.

Eni’s proved reserves have been estimated on the basis ofthe applicable U.S. Securities & Exchange Commissionregulation, Rule 4-10 of Regulation S-X and its interpretationsand have been disclosed in accordance with Statement of FinancialAccounting Standard No. 69. The estimates of proved reserves,developed and undeveloped, for the years ended December 31, 2006,2007 and 2008 are based on data prepared by Eni. Since 1991 Enihas requested qualified independent oil engineering companies tocarry out an independent evaluation16 of its provedreserves on a rotation basis. Eni believes these independentevaluators to be experienced and qualified in the marketplace. Inthe preparation of their reports, these independent evaluatorsrelied, without independent verification, upon informationfurnished by Eni with respect to property interest, production,current cost of operation and development, agreements relating tofuture operations and sale prices and other information and datathat were accepted as represented by the independent evaluators.This information was the same used by Eni in determining provedreserves and include: log, directional surveys, core and PVTanalysis, maps, oil/gas/water production/injection data of wells,reservoirs and fields, reservoir studies, technical analysisrelevant to field performance, reservoir performance, budget dataper field, long-term development plans, future capital andoperating costs. In order to calculate the economic value ofreserve NPV, actual prices received from hydrocarbon sales,instructions on future prices, and other pertinent informationare provided. Accordingly, the work performed 

 

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| (16) |   | From 1991 to        2002 by DeGolyer and MacNaughton, from 2003 also by Ryder        Scott Company. |
|------|--------|-----------------------------------------------------------------------------------------------------|

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by the independent evaluators is an evaluation of Eni’sproved reserves carried out in parallel with the internal one.The circumstance that the independent evaluations achieved thesame results as those of the Company for the vast majority offields support the management’s confidence that thecompany’s booked reserves meet the regulatory definition ofproved reserves which are reasonably certain to be produced inthe future. When the assessment of independent engineers is lowerthan internal evaluations, Eni revises its estimates based oninformation provided by independent evaluators. In particular, in2008, a total of 1.5 BBOE of proved reserves, or about 22% ofEni’s total proved reserves at December 31, 2008, have beenevaluated. The results of this independent evaluation haveessentially confirmed, as in previous years, the internalassessment. In the 2006-2008 three-year period, 77% of Eni’stotal proved reserves were subject to independent evaluations. Inthe last three years, the most important of Eni’s propertiesas at December 31, 2008 which were not subject to an independentevaluation were: Bouri and Bu Attifel (Libya), Barbara (Italy),M’Boundi (Congo) and Elgin-Franklin (UK).

Eni operates under Production Sharing Agreements (PSAs) inseveral of the foreign jurisdictions where it has oil and gasexploration and production activities. Reserves of oil andnatural gas to which Eni is entitled under PSA arrangements areshown in accordance with Eni’s economic interest in thevolumes of oil and natural gas estimated to be recoverable infuture years. Such reserves include estimated quantitiesallocated to Eni for recovery of costs, income taxes owed by Enibut settled by its joint venture partners (which are state-ownedentities) out of Eni’s share of production and Eni’snet equity share after cost recovery.

Proved oil and gas reserves associated with PSAs represented53%, 46% and 54% of total proved reserves as of year-end 2006,2007 and 2008, respectively, on an oil-equivalent basis.

Proved reserves associated with service and"Buy-Back" represented 2%, 1% and 2% of total provedreserves on an oil-equivalent basis as of year-end 2006, 2007 and2008, respectively.

Oil and gas reserve quantities include: (i) oil and naturalgas quantities in excess of cost recovery which the company hasan obligation to purchase under certain PSAs with governments orauthorities, whereby the company serves as producer of reserves.Reserve volumes associated with oil and gas deriving from suchobligations represent 1.1%, 1.8% and 0.1% of total provedreserves as of year-end 2006, 2007 and 2008, respectively, on anoil-equivalent basis; (ii) volumes of natural gas used for ownconsumption; and (iii) volumes of natural gas held in certain ofEni’s storage fields in Italy. Proved reserves attributableto these fields include: (a) the residual natural gas volumes ofthe reservoirs and (b) natural gas volumes from other Eni fieldsinput into these reservoirs in subsequent periods. Provedreserves do not include volumes owned by or acquired by thirdparties. Gas withdrawn from storage is produced and therebyremoved from proved reserves when sold.

Numerous uncertainties are inherent in estimating quantitiesof proved reserves and in projecting future rates of productionand timing of development expenditures. The accuracy of anyreserve estimate is a function of the quality of available dataand engineering and geological interpretation and judgment.Results of drilling, testing and production after the date of theestimate may require substantial upward or downward revision. Inaddition, changes in oil and natural gas prices have an effect onthe quantities of Eni’s proved reserves since estimates ofreserves are based on prices and costs relevant at the date whensuch estimates are made. Consequently, reserves evaluation couldalso diverge significantly from oil and natural gas volumes whichwill be actually produced.

The following table presents yearly changes in estimatedproved reserves, developed and undeveloped, of crude oil(including condensate and natural gas liquids) and natural gasfor the years 2006, 2007 and 2008.

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*Crude oil (including condensate and natural gas liquids)*

| **Proved oil reserves** |   | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|-------------------------|--------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|

| (mmBBL) |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|---------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| **Reserves at December 31, 2005**          |   | **228** |   |   | **961** |   |   | **936** |   |   | **433** |   |   | **778** |   |   | **412** |   |   | **3,748** |   |   | **25**  |   |
|--------------------------------------------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|---------|--------|--------|-----------|--------|--------|---------|--------|
| Revisions        of Previous Estimates (a) |   | 15      |   |   | 61      |   |   | (85     | )      |   | 20      |   |   | 72      |   |   | (19     | )      |   | **64**    |   |   | 1       |   |
| Improved Recovery                          |   |    |   |   | 49      |   |   | 41      |   |   |    |   |   | 14      |   |   |    |   |   | **104**   |   |   | 1       |   |
| Extensions        and Discoveries          |   |    |   |   | 30      |   |   | 11      |   |   |    |   |   | 52      |   |   | 10      |   |   | **103**   |   |   |    |   |
| Production                                 |   | (28     | )      |   | (119    | )      |   | (117    | )      |   | (65     | )      |   | (23     | )      |   | (38     | )      |   | **(390**  | **)**  |   | (3      | )      |
| Sales of        Minerals in Place (b)      |   |    |   |   |    |   |   |    |   |   | (2      | )      |   |    |   |   | (170    | )      |   | **(172**  | **)**  |   |    |   |
| **Reserves at December 31, 2006**          |   | **215** |   |   | **982** |   |   | **786** |   |   | **386** |   |   | **893** |   |   | **195** |   |   | **3,457** |   |   | **24**  |   |
| Purchase        of Minerals in Place       |   |    |   |   |    |   |   | 32      |   |   |    |   |   |    |   |   | 54      |   |   | **86**    |   |   | 101     |   |
| Revisions of Previous Estimates            |   | 28      |   |   | (35     |   |   | (26     | )      |   | 14      |   |   | (114    | )      |   | (31     | )      |   | **(164**  | **)**  |   | 20      |   |
| Improved        Recovery                   |   |    |   |   | 9       |   |   | 12      |   |   | 1       |   |   |    |   |   |    |   |   | **22**    |   |   | 1       |   |
| Extensions and Discoveries                 |   |    |   |   | 43      |   |   | 22      |   |   | 1       |   |   |    |   |   | 29      |   |   | **95**    |   |   | 1       |   |
| Production                                 |   | (28     | )      |   | (121    | )      |   | (101    | )      |   | (57     | )      |   | (26     | )      |   | (36     | )      |   | **(369**  | **)**  |   | (5      | )      |
| **Reserves at December 31, 2007**          |   | **215** |   |   | **878** |   |   | **725** |   |   | **345** |   |   | **753** |   |   | **211** |   |   | **3,127** |   |   | **142** |   |
| Purchase of Minerals in Place              |   |    |   |   |    |   |   | 32      |   |   |    |   |   | 32      |   |   | 4       |   |   | **68**    |   |   |    |   |
| Revisions of Previous Estimates            |   | (8      | )      |   | 56      |   |   | 80      |   |   | (31     | )      |   | 238     |   |   | 56      |   |   | **391**   |   |   | 4       |   |
| Improved Recovery                          |   |    |   |   | 7       |   |   | 25      |   |   |    |   |   |    |   |   |    |   |   | **32**    |   |   | 1       |   |
| Extensions and Discoveries                 |   | 4       |   |   | 4       |   |   | 26      |   |   | 13      |   |   | 2       |   |   | 3       |   |   | **52**    |   |   |    |   |
| Production                                 |   | (25     | )      |   | (122    | )      |   | (105    | )      |   | (51     | )      |   | (30     | )      |   | (38     | )      |   | **(371**  | **)**  |   | (5      | )      |
| Sales of Minerals in Place                 |   |    |   |   |    |   |   |    |   |   |    |   |   | (56     | )      |   |    |   |   | **(56**   | **)**  |   |    |   |
| **Reserves at December 31, 2008**          |   | **186** |   |   | **823** |   |   | **783** |   |   | **276** |   |   | **939** |   |   | **236** |   |   | **3,243** |   |   | **142** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

 

| **Proved developed oil        reserves** |   | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|------------------------------------------|--------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|

| (mmBBL) |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|---------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| Reserves at December 31, 2005        |   | 149 |   | 697 |   | 568 |   | 353 |   | 266 |   | 298 |   | **2,331** |   | 19 |
|--------------------------------------|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----|--------|-----------|--------|----|
| Reserves        at December 31, 2006 |   | 136 |   | 713 |   | 546 |   | 329 |   | 262 |   | 140 |   | **2,126** |   | 18 |
| Reserves at December 31, 2007        |   | 133 |   | 649 |   | 511 |   | 299 |   | 219 |   | 142 |   | **1,953** |   | 26 |
| Reserves        at December 31, 2008 |   | 111 |   | 613 |   | 576 |   | 222 |   | 321 |   | 166 |   | **2,009** |   | 33 |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| i   | i |                                                                                                       |
|-----|---|------------------------------------------------------------------------------------------------------------|
| (a) | i | Includes the        redetermination of Eni’s share in the Val        d’Agri concession in Italy. |
| (b) | i | Includes 170        mmBBL related to unilateral termination of OSA for        Dación field by PDVSA.  |

| (1) | i | Eni’s        proved reserves of the Kashagan field are determined        based on Eni's share of 16.81% as of December 31, 2008        and 18.52% in previous years.                                                                            |
|-----|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | i | Reserves of        joint ventures and associates as at December 31, 2007 and        December 31, 2008 include 60% of the three Russian        companies formerly part of Yukos purchased in 2007, for        which Gazprom has a call option of 51%. |

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*Natural gas*

| **Proved natural gas        reserves** |   | **Italy**        (a) |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|----------------------------------------|--------|----------------------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|

| (BCF) |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|-------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| **Reserves at December 31, 2005**    |   | **3,676** |   |   | **6,117** |   |   | **1,965** |   |   | **1,864** |   |   | **1,774** |   |   | **2,105** |   |   | **17,501** |   |   | **90**    |   |
|--------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|-----------|--------|--------|------------|--------|--------|-----------|--------|
| Purchase        of Minerals in Place |   |      |   |   |      |   |   |      |   |   | 4         |   |   |      |   |   |      |   |   | **4**      |   |   |      |   |
| Revisions of Previous Estimates      |   | 36        |   |   | 154       |   |   | 31        |   |   | 53        |   |   | 183       |   |   | 47        |   |   | **504**    |   |   | (7        | )      |
| Extensions        and Discoveries    |   | 19        |   |   | 146       |   |   | 34        |   |   | 1         |   |   |      |   |   | 132       |   |   | **332**    |   |   | 8         |   |
| Production                           |   | (340      | )      |   | (471      | )      |   | (103      | )      |   | (218      | )      |   | (83       | )      |   | (222      | )      |   | **(1,437** | **)**  |   | (15       | )      |
| Sales of        Minerals in Place    |   |      |   |   |      |   |   |      |   |   | (7        | )      |   |      |   |   |      |   |   | **(7**     | **)**  |   |      |   |
| **Reserves at December 31, 2006**    |   | **3,391** |   |   | **5,946** |   |   | **1,927** |   |   | **1,697** |   |   | **1,874** |   |   | **2,062** |   |   | **16,897** |   |   | **68**    |   |
| Purchase        of Minerals in Place |   |      |   |   |      |   |   | 5         |   |   |      |   |   |      |   |   | 395       |   |   | **400**    |   |   | 2,963     |   |
| Revisions of Previous Estimates      |   | (53       | )      |   | 250       |   |   | 74        |   |   | 67        |   |   | (222      | )      |   | 6         |   |   | **122**    |   |   | 5         |   |
| Improved        Recovery             |   |      |   |   |      |   |   |      |   |   | 3         |   |   |      |   |   |      |   |   | **3**      |   |   |      |   |
| Extensions and Discoveries           |   | 4         |   |   | 89        |   |   | 213       |   |   | 7         |   |   | 205       |   |   | 89        |   |   | **607**    |   |   |      |   |
| Production                           |   | (285      | )      |   | (534      | )      |   | (97       | )      |   | (216      | )      |   | (87       | )      |   | (261      | )      |   | **(1,480** | **)**  |   | (14       | )      |
| **Reserves at December 31, 2007**    |   | **3,057** |   |   | **5,751** |   |   | **2,122** |   |   | **1,558** |   |   | **1,770** |   |   | **2,291** |   |   | **16,549** |   |   | **3,022** |   |
| Purchase of Minerals in Place        |   |      |   |   |      |   |   | 6         |   |   | 8         |   |   |      |   |   | 114       |   |   | **128**    |   |   |      |   |
| Revisions of Previous Estimates      |   | 56        |   |   | 1,163     |   |   | 45        |   |   | (51       | )      |   | 773       |   |   | 55        |   |   | **2,041**  |   |   | 6         |   |
| Improved Recovery                    |   |      |   |   |      |   |   | 4         |   |   |      |   |   |      |   |   |      |   |   | **4**      |   |   |      |   |
| Extensions and Discoveries           |   | 5         |   |   | 38        |   |   | 2         |   |   | 25        |   |   |      |   |   | 42        |   |   | **112**    |   |   |      |   |
| Production                           |   | (274      | )      |   | (641      | )      |   | (95       | )      |   | (204      | )      |   | (90       | )      |   | (300      | )      |   | **(1,604** | **)**  |   | (13       | )      |
| Sales of Minerals in Place           |   |      |   |   |      |   |   |      |   |   |      |   |   | (16       | )      |   |      |   |   | **(16**    | **)**  |   |      |   |
| **Reserves at December 31, 2008**    |   | **2,844** |   |   | **6,311** |   |   | **2,084** |   |   | **1,336** |   |   | **2,437** |   |   | **2,202** |   |   | **17,214** |   |   | **3,015** |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

 

| **Proved developed        natural gas reserves** |   | **Italy**(a) |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|--------------------------------------------------|--------|--------------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|

| (BCF) |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|-------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| Reserves at December 31, 2005        |   | 2,704 |   | 3,060 |   | 1,289 |   | 1,484 |   | 1,618 |   | 1,004 |   | **11,159** |   | 70  |
|--------------------------------------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|--------|-------|--------|------------|--------|-----|
| Reserves        at December 31, 2006 |   | 2,449 |   | 3,042 |   | 1,447 |   | 1,395 |   | 1,511 |   | 1,105 |   | **10,949** |   | 48  |
| Reserves at December 31, 2007        |   | 2,304 |   | 3,065 |   | 1,469 |   | 1,293 |   | 1,580 |   | 1,256 |   | **10,967** |   | 428 |
| Reserves        at December 31, 2008 |   | 2,031 |   | 3,537 |   | 1,443 |   | 1,065 |   | 2,006 |   | 1,056 |   | **11,138** |   | 420 |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                            |
|--------------|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)          |    | Including        approximately 760, 754, 749 and 746 BCF of natural gas        held in storage at December 31, 2005, 2006, 2007 and        2008, respectively.                                                                                       |
| (1)          |    | Eni’s        proved reserves of the Kashagan field are determined        based on Eni's share of 16.81% as of December 31, 2008        and 18.52% in previous years.                                                                            |
| (2)          |    | Reserves of        joint ventures and associates as at December 31, 2007 and        December 31, 2008 include 60% of the three Russian        companies formerly part of Yukos purchased in 2007, for        which Gazprom has a call option of 51%. |

*Standardized measure of discounted future net cash flows*Estimated future cash inflows represent the revenues that wouldbe received from production and are determined by applyingyear-end prices of oil and gas to the estimated future productionof proved reserves. Future price changes are considered only tothe extent provided by contractual arrangements. Estimated futuredevelopment and production costs are determined by estimating theexpenditures to be incurred in developing and producing theproved reserves at the end of the year. Neither the effects ofprice and cost escalations nor expected future changes intechnology and operating practices have been considered.

The standardized measure is calculated as the excess of futurecash inflows from proved reserves less future costs of producingand developing the reserves, future income taxes and a yearly 10%discount factor.

Future cash flows as of December 31, 2006, 2007 and 2008include amounts that Eni’s Gas & Power segment and othergas companies pay for storage services, required to supportmarket demand flexibility needs.

Future production costs include the estimated expendituresrelated to the production of proved reserves plus any productiontaxes without consideration of future inflation. Futuredevelopment costs include the estimated costs of drillingdevelopment wells and installation of production facilities, plusthe net costs associated with dismantlement and abandonment ofwells and facilities, under the assumption that year-end costscontinue without considering future inflation. Future incometaxes were calculated in accordance with the tax laws of thecountries in which Eni operates.

The standardized measure of discounted future net cash flows,related to the preceding proved oil and gas reserves, iscalculated in accordance with the requirements of Statement ofFinancial Accounting Standard No. 69. The standardized measuredoes not purport to reflect realizable values or fair marketvalue of Eni’s proved reserves. An estimate of fair valuewould also take into account, among other things, hydrocarbonresources other than proved 

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reserves, anticipated changes in future prices and costs and adiscount factor representative of the risks inherent in the oiland gas exploration and production activity.

The standardized measure of discounted future net cash flowsby geographical area consists of the following:

| (euro        million) |   | **Italy** |   | **North Africa** |   | **West Africa** |   | **North Sea** |   | **Caspian        Area**(1) |   | **Rest of World** |   | **Total consolidated subsidiaries** |   | **Total joint ventures and associates**(2) |
|-----------------------|--------|-----------|--------|------------------|--------|-----------------|--------|---------------|--------|----------------------------|--------|-------------------|--------|-------------------------------------|--------|--------------------------------------------|

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

| **At December 31, 2006**                                            |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |        |   |   |      |   |
|---------------------------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|--------|-----------|--------|
| Future        cash inflows                                          |   | 43,495     |   |   | 64,381     |   |   | 34,935     |   |   | 24,821     |   |   | 33,825     |   |   | 14,766     |   |   | **216,223** |   |   | 1,038     |   |
| Future production costs                                             |   | (6,086     | )      |   | (9,707     | )      |   | (8,028     | )      |   | (6,426     | )      |   | (4,162     | )      |   | (1,753     | )      |   | **(36,162** | **)**  |   | (224      | )      |
| Future        development and abandonment costs                     |   | (6,739     | )      |   | (5,383     | )      |   | (2,865     | )      |   | (2,265     | )      |   | (3,103     | )      |   | (1,473     | )      |   | **(21,828** | **)**  |   | (79       | )      |
| **Future cash inflow before income tax**                            |   | **30,670** |   |   | **49,291** |   |   | **24,042** |   |   | **16,130** |   |   | **26,560** |   |   | **11,540** |   |   | **158,233** |   |   | **735**   |   |
| Future        income tax                                            |   | (10,838    | )      |   | (24,639    | )      |   | (14,141    | )      |   | (10,901    | )      |   | (7,649     | )      |   | (3,824     | )      |   | **(71,992** | **)**  |   | (227      | )      |
| **Future net cash flows**                                           |   | **19,832** |   |   | **24,652** |   |   | **9,901**  |   |   | **5,229**  |   |   | **18,911** |   |   | **7,716**  |   |   | **86,241**  |   |   | **508**   |   |
| 10%        discount factor                                          |   | (11,493    | )      |   | (10,631    | )      |   | (2,994     | )      |   | (1,392     | )      |   | (13,878    | )      |   | (2,626     | )      |   | **(43,014** | **)**  |   | (154      | )      |
| **Standardized measure of discounted future net        cash flows** |   | **8,339**  |   |   | **14,021** |   |   | **6,907**  |   |   | **3,837**  |   |   | **5,033**  |   |   | **5,090**  |   |   | **43,227**  |   |   | **354**   |   |
| **At        December 31, 2007**                                     |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |        |   |   |      |   |
| Future cash inflows                                                 |   | 47,243     |   |   | 73,456     |   |   | 48,283     |   |   | 29,610     |   |   | 42,710     |   |   | 20,359     |   |   | **261,661** |   |   | 7,135     |   |
| Future        production costs                                      |   | (5,926     | )      |   | (11,754    | )      |   | (9,875     | )      |   | (6,670     | )      |   | (4,997     | )      |   | (2,782     | )      |   | **(42,004** | **)**  |   | (1,249    | )      |
| Future development and abandonment costs                            |   | (7,218     | )      |   | (4,643     | )      |   | (3,013     | )      |   | (2,461     | )      |   | (3,374     | )      |   | (2,459     | )      |   | **(23,168** | **)**  |   | (1,721    | )      |
| **Future        cash inflow before income tax**                     |   | **34,099** |   |   | **57,059** |   |   | **35,395** |   |   | **20,479** |   |   | **34,339** |   |   | **15,118** |   |   | **196,489** |   |   | **4,165** |   |
| Future income tax                                                   |   | (10,778    | )      |   | (29,083    | )      |   | (23,083    | )      |   | (14,375    | )      |   | (9,977     | )      |   | (5,397     | )      |   | **(92,693** | **)**  |   | (2,009    | )      |
| **Future        net cash flows**                                    |   | **23,321** |   |   | **27,976** |   |   | **12,312** |   |   | **6,104**  |   |   | **24,362** |   |   | **9,721**  |   |   | **103,796** |   |   | **2,156** |   |
| 10% discount factor                                                 |   | (13,262    | )      |   | (11,143    | )      |   | (3,953     | )      |   | (1,600     | )      |   | (17,480    | )      |   | (3,356     | )      |   | **(50,794** | **)**  |   | (1,265    | )      |
| **Standardized        measure of discounted future net cash flows** |   | **10,059** |   |   | **16,833** |   |   | **8,359**  |   |   | **4,504**  |   |   | **6,882**  |   |   | **6,365**  |   |   | **53,002**  |   |   | **891**   |   |
| **At December 31, 2008**                                            |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |       |   |   |        |   |   |      |   |
| Future cash inflows                                                 |   | 46,458     |   |   | 62,785     |   |   | 22,344     |   |   | 16,056     |   |   | 22,199     |   |   | 13,622     |   |   | **183,464** |   |   | 4,782     |   |
| Future production costs                                             |   | (5,019     | )      |   | (10,673    | )      |   | (6,715     | )      |   | (3,414     | )      |   | (6,380     | )      |   | (2,715     | )      |   | **(34,916** | **)**  |   | (1,104    | )      |
| Future development and abandonment costs                            |   | (6,805     | )      |   | (6,153     | )      |   | (3,868     | )      |   | (2,166     | )      |   | (5,114     | )      |   | (1,897     | )      |   | **(26,003** | **)**  |   | (1,845    | )      |
| **Future cash inflow before income tax**                            |   | **34,634** |   |   | **45,959** |   |   | **11,761** |   |   | **10,476** |   |   | **10,705** |   |   | **9,010**  |   |   | **122,545** |   |   | **1,833** |   |
| Future income tax                                                   |   | (11,329    | )      |   | (27,800    | )      |   | (5,599     | )      |   | (7,621     | )      |   | (2,781     | )      |   | (1,901     | )      |   | **(57,031** | **)**  |   | (1,032    | )      |
| **Future net cash flows**                                           |   | **23,305** |   |   | **18,159** |   |   | **6,162**  |   |   | **2,855**  |   |   | **7,924**  |   |   | **7,109**  |   |   | **65,514**  |   |   | **801**   |   |
| 10% discount factor                                                 |   | (13,884    | )      |   | (8,639     | )      |   | (2,155     | )      |   | (869       | )      |   | (6,272     | )      |   | (2,243     | )      |   | **(34,062** | **)**  |   | (763      | )      |
| **Standardized measure of discounted future net        cash flows** |   | **9,421**  |   |   | **9,520**  |   |   | **4,007**  |   |   | **1,986**  |   |   | **1,652**  |   |   | **4,866**  |   |   | **31,452**  |   |   | **38**    |   |

|   |   |  |   |  |   |  |   |  |   |  |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|--------|--|

|    |    |                                                                                                                                                                                                                                               |
|--------------|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)          |    | Eni's        standardized measure of discounted future of net cash        flows of the Kashagan field is determined based on        Eni’s share of 16.81% as of December 31, 2008 and        18.52% in previous years.                             |
| (2)          |    | The amounts        of joint ventures and associates as at December 31, 2007        and December 31, 2008 include 60% of the three Russian        companies formerly part of Yukos purchased in 2007, for        which Gazprom has a call option of 51%. |

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*Changes in standardized measure of discounted future netcash flows*

Changes in standardized measure of discounted future net cashflows for the years 2006, 2007 and 2008.

| (euro        million) |   | **2006** |   | **2007** |   | **2008** |
|-----------------------|--------|----------|--------|----------|--------|----------|
|                  |   |          |   |          |   |          |

|                                                                                                   |   |        |   |   |       |   |   |        |   |
|--------------------------------------------------------------------------------------------------------|--------|-------------|--------|--------|------------|--------|--------|-------------|--------|
| ****Beginning of year****                                                                              |   | **55,722**  |   |   | **43,581** |   |   | **53,893**  |   |
| Beginning        of year related to joint venture and associates                                       |   | (371        | )      |   | (354       | )      |   | (891        | )      |
| ****Beginning of year consolidated****                                                                 |   | **55,351**  |   |   | **43,227** |   |   | **53,002**  |   |
| Increase        (decrease):                                                                            |   |        |   |   |       |   |   |        |   |
| - sales, net of production costs                                                                       |   | (21,739     | )      |   | (20,979    | )      |   | (26,202     | )      |
| - net        changes in sales and transfer prices, net of production        costs                      |   | 4,097       |   |   | 34,999     |   |   | (39,699     | )      |
| - extensions, discoveries and improved recovery,        net of future production and development costs |   | 3,629       |   |   | 3,982      |   |   | 1,110       |   |
| - changes        in estimated future development and abandonment costs                                 |   | (6,964      | )      |   | (4,000     | )      |   | (6,222      | )      |
| - development costs incurred during the period        that reduced future development costs            |   | 3,558       |   |   | 4,682      |   |   | 6,584       |   |
| -        revisions of quantity estimates                                                               |   | 383         |   |   | (2,995     | )      |   | 5,835       |   |
| - accretion of discount                                                                                |   | 9,489       |   |   | 7,968      |   |   | 10,538      |   |
| - net        change in income taxes                                                                    |   | 3,060       |   |   | (17,916    | )      |   | 21,359      |   |
| - purchase of reserves in-place                                                                        |   | 10          |   |   | 3,521      |   |   | 476         |   |
| - sale of        reserves in-place                                                                     |   | (1,252      | )      |   |       |   |   | 25          |   |
| - changes in production rates (timing) and other                                                       |   | (6,395      | )      |   | 513        |   |   | 4,646       |   |
| ****Net        increase (decrease)****                                                                 |   | **(12,124** | **)**  |   | **9,775**  |   |   | **(21,550** | **)**  |
| ****Standardized measure of discounted        future net cash flows consolidates****                   |   | **43,227**  |   |   | **53,002** |   |   | **31,452**  |   |
| Standardized        measure of discounted future net cash flows joint        ventures and associates   |   | 354         |   |   | 891        |   |   | 38          |   |
| ****Standardized measure of discounted        future net cash flows****                                |   | **43,581**  |   |   | **53,893** |   |   | **31,490**  |   |

|   |   |  |   |  |   |  |
|--------|--------|--|--------|--|--------|--|

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**SIGNATURES**

The registrant hereby certifies that it meets all of therequirements for filing on Form 20-F and that it has duly causedand authorized the undersigned to sign this Amendment No. 1 tothis annual report on its behalf.

Date: September 1, 2009

 

 

 

 

 

 

 

| Eni SpA                           |
|-----------------------------------|
|                              |
| /s/ANTONIO CRISTODORO             |
|                                   |
|                              |
| Antonio Cristodoro                |
| Title: Deputy Corporate Secretary |

 

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Certifications as separate documents filedas exhibits

**EXHIBIT 12.1**

**Certification**

 

I, Paolo Scaroni, certify that:

|   | 1. |   | I have reviewed this annual        report on Form 20-F/A of Eni SpA; |
|--------|----|--------|----------------------------------------------------------------------|

|   | 2. |   | Based on my knowledge, this        report does not contain any untrue statement of a        material fact or omit to state a material fact necessary        to make the statements made, in light of the        circumstances under which such statements were made, not        misleading with respect to the period covered by this        report; |
|--------|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. |   | Based on my knowledge, the        financial statements, and other financial information        included in this report, fairly present in all material        respects the financial condition, results of operations        and cash flows of the company as of, and for, the periods        presented in this report; |
|--------|----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. |   | The company’s other        certifying officer and I are responsible for establishing        and maintaining disclosure controls and procedures (as        defined in Exchange Act Rules 13a-15(e) and 15d-15(e))        and internal control over financial reporting (as defined        in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the        company and have: |
|--------|----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) |   | Designed such disclosure        controls and procedures, or caused such disclosure        controls and procedures to be designed under our        supervision, to ensure that material information relating        to the company, including its consolidated subsidiaries,        is made known to us by others within those entities,        particularly during the period in which this report is        being prepared; |
|--------|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) |   | Designed such internal        control over financial reporting, or caused such internal        control over financial reporting to be designed under our        supervision, to provide reasonable assurance regarding        the reliability of financial reporting and the        preparation of financial statements for external purposes        in accordance with generally accepted accounting        principles; |
|--------|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) |   | Evaluated the effectiveness        of the company’s disclosure controls and procedures        and presented in this report our conclusions about the        effectiveness of the disclosure controls and procedures,        as of the end of the period covered by this report based        on such evaluation; and |
|--------|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) |   | Disclosed in this report any        change in the company’s internal control over        financial reporting that occurred during the period        covered by the annual report that has materially        affected, or is reasonably likely to materially affect,        the company’s internal control over financial        reporting; and |
|--------|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. |   | The company’s other        certifying officer and I have disclosed, based on our        most recent evaluation of internal control over financial        reporting, to the company’s auditors and the audit        committee of the company’s board of directors (or        persons performing the equivalent functions): |
|--------|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) |   | All significant deficiencies        and material weaknesses in the design or operation of        internal control over financial reporting which are        reasonably likely to adversely affect the company’s        ability to record, process, summarize and report        financial information; and |
|--------|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) |   | Any fraud, whether or not        material, that involves management or other employees who        have a significant role in the company’s internal        control over financial reporting. |
|--------|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Date: September 1, 2009

| /s/PAOLO SCARONI                                    |
|-----------------------------------------------------|
|                                                     |
| Paolo Scaroni        Title: Chief Executive Officer |

 

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**EXHIBIT 12.2**

**Certification**

 

I, Alessandro Bernini, certify that:

|   | 1. |   | I have reviewed this annual        report on Form 20-F/A of Eni SpA; |
|--------|----|--------|----------------------------------------------------------------------|

|   | 2. |   | Based on my knowledge, this        report does not contain any untrue statement of a        material fact or omit to state a material fact necessary        to make the statements made, in light of the        circumstances under which such statements were made, not        misleading with respect to the period covered by this        report; |
|--------|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. |   | Based on my knowledge, the        financial statements, and other financial information        included in this report, fairly present in all material        respects the financial condition, results of operations        and cash flows of the company as of, and for, the periods        presented in this report; |
|--------|----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. |   | The company’s other        certifying officer and I are responsible for establishing        and maintaining disclosure controls and procedures (as        defined in Exchange Act Rules 13a-15(e) and 15d-15(e))        and internal control over financial reporting (as defined        in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the        company and have: |
|--------|----|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) |   | Designed such disclosure        controls and procedures, or caused such disclosure        controls and procedures to be designed under our        supervision, to ensure that material information relating        to the company, including its consolidated subsidiaries,        is made known to us by others within those entities,        particularly during the period in which this report is        being prepared; |
|--------|-----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) |   | Designed such internal        control over financial reporting, or caused such internal        control over financial reporting to be designed under our        supervision, to provide reasonable assurance regarding        the reliability of financial reporting and the        preparation of financial statements for external purposes        in accordance with generally accepted accounting        principles; |
|--------|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) |   | Evaluated the effectiveness        of the company’s disclosure controls and procedures        and presented in this report our conclusions about the        effectiveness of the disclosure controls and procedures,        as of the end of the period covered by this report based        on such evaluation; and |
|--------|-----|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) |   | Disclosed in this report any        change in the company’s internal control over        financial reporting that occurred during the period        covered by the annual report that has materially        affected, or is reasonably likely to materially affect,        the company’s internal control over financial        reporting; and |
|--------|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5. |   | The company’s other        certifying officer and I have disclosed, based on our        most recent evaluation of internal control over financial        reporting, to the company’s auditors and the audit        committee of the company’s board of directors (or        persons performing the equivalent functions): |
|--------|----|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (a) |   | All significant deficiencies        and material weaknesses in the design or operation of        internal control over financial reporting which are        reasonably likely to adversely affect the company’s        ability to record, process, summarize and report        financial information; and |
|--------|-----|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) |   | Any fraud, whether or not        material, that involves management or other employees who        have a significant role in the company’s internal        control over financial reporting. |
|--------|-----|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Date: September 1, 2009

 

| /s/ALESSANDRO BERNINI                                    |
|----------------------------------------------------------|
|                                                          |
| Alessandro Bernini        Title: Chief Financial Officer |

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**EXHIBIT 13.1**

 

**Certification Pursuant to 18U.S.C. Section 1350**

 

For purposes of 18 U.S.C. Section 1350, the undersignedofficer of Eni SpA, a company incorporated under the laws ofItaly (the "Company"), hereby certifies, to suchofficer’s knowledge, that:

> 
(i) the Annual Report on Form 20-F/A of the Company for    the year ended December 31, 2008 (the "Report")    fully complies with the requirements of section 13(a) or    15(d) as applicable, of the Securities Exchange Act of 1934;    and

(ii) the information contained in the Report fairly    presents, in all material respects, the financial condition    and results of operations of the Company.

Date: September 1, 2009

 

| /s/PAOLO SCARONI                                    |
|-----------------------------------------------------|
|                                                     |
| Paolo Scaroni        Title: Chief Executive Officer |

 

The foregoing certification is not deemed filed for purpose ofSection 18 of the Exchange Act and not incorporated by referencewith any filing under the Securities Act.

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**EXHIBIT 13.2**

 

**Certification Pursuant to 18U.S.C. Section 1350**

 

For purposes of 18 U.S.C. Section 1350, the undersignedofficer of Eni SpA, a company incorporated under the laws ofItaly (the "Company"), hereby certifies, to suchofficer’s knowledge, that:

> 
(i) the Annual Report on Form 20-F/A of the Company for    the year ended December 31, 2008 (the "Report")    fully complies with the requirements of section 13(a) or    15(d) as applicable, of the Securities Exchange Act of 1934;    and

(ii) the information contained in the Report fairly    presents, in all material respects, the financial condition    and results of operations of the Company.

Date: September 1, 2009

 

| /s/ALESSANDRO BERNINI                                    |
|----------------------------------------------------------|
|                                                          |
| Alessandro Bernini        Title: Chief Financial Officer |

 

The foregoing certification is not deemed filed for purpose ofSection 18 of the Exchange Act and not incorporated by referencewith any filing under the Securities Act.

 

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