Eni Ramps Up Decarbonization Efforts With Investments Outside Hydrocarbons

Eni’s latest strategy to achieve carbon neutrality in 2050 rests on three pillars: decarbonization, diversification, and what it calls flexibility and resiliency. The latter pertains to improving the economics of its legacy oil and gas business which will remain the primary value driver in the medium term and command the majority of investment. It plans to grow production to 2.0 mmboed in 2024 from 1.7 mmboed in 2020 while reducing its breakeven level to below $30/bbl by 2024 and earning returns of 18%. Hydrocarbon production and investment post-2024 remain uncertain and market dependent, though management plans for natural gas to compose 90% of what will likely be a much smaller portfolio in 2050.