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<SEC-DOCUMENT>0001292814-04-000046.txt : 20040625
<SEC-HEADER>0001292814-04-000046.hdr.sgml : 20040625
<ACCEPTANCE-DATETIME>20040625172329
ACCESSION NUMBER:		0001292814-04-000046
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20031231
FILED AS OF DATE:		20040625

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENI SPA
		CENTRAL INDEX KEY:			0001002242
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		20-F
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14090
		FILM NUMBER:		04882853

	BUSINESS ADDRESS:	
		STREET 1:		PIAZZALE ENRICO MATTEI 1
		CITY:			ROME ITALY
		STATE:			L6
		ZIP:			00144
		BUSINESS PHONE:		011390659822449

	MAIL ADDRESS:	
		STREET 1:		PIAZZALE ENRICO MATTEI 1
		CITY:			ROME ITALY
		STATE:			L6
		ZIP:			00144
</SEC-HEADER>
<DOCUMENT>
<TYPE>20-F
<SEQUENCE>1
<FILENAME>eni_form20f.htm
<DESCRIPTION>FORM 20-F 2003
<TEXT>
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<title>Provided by MZ Data Products</title>
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<p align="center"> <FONT FACE="times new roman" SIZE="4"><B>SECURITIES AND EXCHANGE COMMISSION</B> </FONT>
<br>
<FONT FACE="times new roman" SIZE="2">Washington, DC 20549</FONT>
</P>

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     <TD width=40% ALIGN="CENTER"><hr align="center" width="200" size="1" noshade COLOR="#000000"><FONT FACE="times new roman" SIZE="4">
<B>FORM 20-F</B> </FONT></TD>
     <TD width=30% ALIGN="CENTER"></TD></TR>
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<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=top>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
     <TD WIDTH="70%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(Mark One)</FONT></TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=top>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2><IMG SRC="nox.gif"> </FONT></TD>
     <TD WIDTH="70%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) <BR> OF THE SECURITIES EXCHANGE ACT OF 1934</FONT></TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OR</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><IMG SRC="x.gif"> </B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF <BR> THE SECURITIES EXCHANGE ACT OF 1934 <BR> For the fiscal year ended December 31, 2003</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE=2>OR</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE=2> <IMG SRC="nox.gif"> </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) <BR> OF THE SECURITIES EXCHANGE ACT OF 1934 <BR> For the transition period from     to <BR><B>Commission file number: 1-14090</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>


<p align="center"> <FONT FACE="times new roman" SIZE="6"><B>Eni SpA</B> </FONT><BR>
<FONT FACE="times new roman" SIZE="1"><I>(Exact Name of Registrant as Specified in Its Charter)</I> </FONT></P>


<p align="center"> <FONT FACE="times new roman" SIZE="3"><B>Republic of Italy</B> </FONT><BR>
<FONT FACE="times new roman" SIZE="1"><I>(Jurisdiction of Incorporation of Organization)</I> </FONT></P>


<p align="center"> <FONT FACE="times new roman" SIZE="3"><B>Piazzale Enrico Mattei 1, 00144 Rome, Italy</B> </FONT><BR>
<FONT FACE="times new roman" SIZE="1"><I>(Address of principal executive offices)</I> </FONT></P>

<HR SIZE="1" NOSHADE WIDTH="20%" COLOR="#000000" ALIGN="CENTER">



<p align=center><FONT FACE="times new roman" SIZE="2">Securities registered or to be registered pursuant to Section 12(b) of the Act:</FONT> </p>


<p align=center>
<FONT FACE="times new roman" SIZE="2">Shares, nominal value euro 1 each, listed on the New York Stock Exchange not for trading, but only in
connection with the registration of American Depositary Shares, pursuant to the requirements of the New
York Stock Exchange.</FONT> </p>

<p align=center><FONT FACE="times new roman" SIZE="2">American Depositary Shares, each representing the right to receive five Shares, listed on the New York
Stock Exchange.</FONT> </p>


<HR SIZE="1" NOSHADE WIDTH="20%" COLOR="#000000" ALIGN="CENTER">


<div align=center>
<FONT FACE="times new roman" SIZE="2">Securities registered or to be registered pursuant to Section 12(g) of the Act:</FONT> </div>


<p align=center>
<FONT FACE="times new roman" SIZE="2"><B>None.</B></FONT> </p>


<HR SIZE="1" NOSHADE WIDTH="20%" COLOR="#000000" ALIGN="CENTER">


<div align=center>
<FONT FACE="times new roman" SIZE="2">Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:</FONT> </div>

<p align=center>
<FONT FACE="times new roman" SIZE="2"><B>None.</B></FONT> </p>


<HR SIZE="1" NOSHADE WIDTH="20%" COLOR="#000000" ALIGN="CENTER">

<p align=center>
<FONT FACE="times new roman" SIZE="2">

Indicate the number of outstanding shares of each of the issuer&#146;s classes of capital or common stock as of
the close of the period covered by the annual report.</FONT>
</p>


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<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ordinary shares of euro 1 each</B> </FONT></TD>
     <TD WIDTH=50% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>4,002,922,176&nbsp;</B> </FONT></TD></TR>
</TABLE>



<p align=center>
<FONT FACE="times new roman" SIZE="2">

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such
shorter period that the registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days. </FONT>
</p>

<p align=center><FONT FACE="times new roman" SIZE="2">Yes&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>X
</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
_____ </FONT></p>

<p align=center><font face="times new roman" size="2">Indicate by check mark which financial
statement item the registrant has elected to follow:</font></p>



<p align=center><FONT FACE="times new roman" SIZE="2">Item 17&nbsp;&nbsp;_____
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Item 18&nbsp;&nbsp;<U>X</U> </FONT>
</p>
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<a name="content"></a>
<p align="center"><b><font face="Times New Roman, Times, serif" size="2">TABLE OF CONTENTS</font></b></p>

<div align=right><FONT FACE="Times New Roman, Times, serif" SIZE="2"><U><B>Page</B></U></font></div>
<table width="80%"  cellspacing="2" cellpadding="0">
<tr>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a01">Certain Defined Terms</a><br>
<a href="#a02">Presentation of Financial and Other Information</a><br>
<a href="#a03">Statements Regarding Competitive Position</a><br>
<a href="#a04">Glossary</a><br>
<a href="#a05">Conversion Table</a></font></p></td>
</tr>
</table>
 <div align="justify"><b><font size="2" face="Times New Roman, Times, serif"><br>
 <a href="#a06">PART I</a> </font></b>
</div>
 <table width="80%"  cellspacing="2" cellpadding="0">
<tr>
<td width="15%" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a07">Item 1.</a> </font></td>
<td width="85%"><font size="2" face="Times New Roman, Times, serif"><a href="#a07"> IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS (*)</a></font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a08"> Item 2.</a> </font></td>
<td><font size="2" face="Times New Roman, Times, serif"><a href="#a08"> OFFER STATISTICS AND EXPECTED TIMETABLE (*)</a> </font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a09"> Item 3.</a> </font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a09">KEY INFORMATION</a><br>
<a href="#a10">Selected Financial Information</a><br>
<a href="#a11">Selected Operating Information</a><br>
<a href="#a12">Exchange Rates</a><br>
<a href="#a13">Risk Factors </a></font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a14">Item 4. </a></font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a14">INFORMATION ON THE COMPANY</a><br>
<a href="#a15">History and Development of the Company</a><br>
<a href="#a16">Business Overview</a><br>
<a href="#a17">Exploration &amp; Production</a><br>
<a href="#a18">Gas &amp; Power</a><br>
<a href="#a19">Refining &amp; Marketing</a><br>
<a href="#a20">Petrochemicals</a><br>
<a href="#a21">Oilfield Services Construction and Engineering</a><br>
<a href="#a22">Other Activities</a><br>
<a href="#a23">Research and Development</a><br>
<a href="#a24">Insurance</a><br>
<a href="#a25">Environmental Matters</a><br>
<a href="#a26">Regulation of Eni's Businesses</a><br>
<a href="#a27">Property, Plant and Equipment</a><br>
<a href="#a28">Organizational Structure</a></font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a29"> Item 5. </a></font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a29">OPERATING AND FINANCIAL REVIEW AND PROSPECTS</a><br>
<a href="#a30">Executive Summary</a><br>
<a href="#a31">Critical Accounting Estimates</a><br>
<a href="#a32">Principles of Consolidation</a><br>
<a href="#a33">Results of Operations</a><br>
<a href="#a34">Liquidity and Capital Resources</a><br>
<a href="#a35">Financial Condition</a><BR>
<a href="#a36">Recent Developments</a><BR>
<a href="#a37">Management Expectations of Operations</a><br>
<a href="#a38">Summary of Significant Differences Between Italian GAAP and U.S. GAAP</a></font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a39"> Item 6.</a> </font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a38">DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</a><br>
<a href="#a40">Directors and Senior Management</a><br>
<a href="#a41">Compensation</a><br>
<a href="#a42">Board Practices</a><br>
<a href="#a43">Employees</a><br>
<a href="#a44">Share Ownership</a></font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a45"> Item 7.</a> </font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a45">MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</a><br>
<a href="#a46">Major Shareholders</a><br>
<a href="#a47">Related Party Transactions</a></font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a48"> Item 8. </a></font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a48">FINANCIAL INFORMATION</a><br>
<a href="#a49">Consolidated Statements and Other Financial Information</a><br>
<a href="#a50">Significant Changes</a></font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a51"> Item 9.</a> </font></td>
<td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a51">THE OFFER AND THE LISTING</a><br>
<a href="#a52">Offer and Listing Details</a><br>
<a href="#a53">Markets</a> </font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a54">Item 10. </a></font></td>
<td valign="top"><p><font size="2" face="Times New Roman, Times, serif"><a href="#a54">ADDITIONAL INFORMATION</a><br>
<a href="#a55">Memorandum and Articles of Association</a><br>
<a href="#a56">Material Contracts</a><br>
<a href="#a57">Exchange Controls</a><br>
<a href="#a58">Taxation</a><br>
<a href="#a59">Documents on Display</a> </font></p></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a60"> Item 11. </a></font></td>
<td><font size="2" face="Times New Roman, Times, serif"> <a href="#a60">QUALITATIVE AND QUANTITATIVE DISCLOSURES ABOUT MARKET RISK </a></font></td>
</tr>
<tr>
<td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a61"> Item 12.</a> </font></td>
<td><font size="2" face="Times New Roman, Times, serif"><a href="#a61"> DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES </a></font></td>
</tr>
</table>
 <div align="justify"><b><font size="2" face="Times New Roman, Times, serif"><br> <a href="#a62">PART II </a></font></b> </div>
 <table width="80%"  cellspacing="2" cellpadding="0">
 <tr>
 <td width="15%" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a63">Item 13.</a></font></td>
 <td width="85%"><font size="2" face="Times New Roman, Times, serif"> <a href="#a63">DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES</a> </font></td>
 </tr>
 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a64">Item 14.</a> </font></td>
 <td><p><font size="2" face="Times New Roman, Times, serif"><a href="#a64">MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS </a></font></p></td>
 </tr>
 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a65">Item 15.</a> </font></td>
 <td><font size="2" face="Times New Roman, Times, serif"><a href="#a65"> CONTROLS AND PROCEDURES</a> </font></td>
 </tr>
 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a67"> Item 16. </a></font></td>
 <td>&nbsp;</td>
 </tr>

 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a67">16 A </a></font></td>
 <td><font size="2" face="Times New Roman, Times, serif"> <a href="#a67">Audit Committee Financial Expert</a> </font></td></tr>

 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a68">16 B </a></font></td>
 <td><font size="2" face="Times New Roman, Times, serif"><a href="#a68"> Code of Ethics </a></font></td></tr>

 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a69"> 16 C</a> </font></td>
 <td><font size="2" face="Times New Roman, Times, serif"><a href="#a69"> Principal Accountant Fees and Services </a></font></td></tr>

 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a70">16 D</a> </font></td>
 <td><font size="2" face="Times New Roman, Times, serif"> <a href="#a70">Exemptions from the Listing Standards for Audit Committees </a></font></td></tr>

 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a71">16 E</a> </font></td>
 <td><font size="2" face="Times New Roman, Times, serif"><a href="#a71"> Purchases of Equity Securities by the Issuer and Affiliated Purchasers </a></font></td></tr>

 </table>
 <br>
 <div align="justify"><b><font size="2" face="Times New Roman, Times, serif"><a href="#a72">PART III </a></font></b> </div>
 <table width="80%"  cellspacing="2" cellpadding="0">
 <tr>
 <td width="15%" valign="top"><font size="2" face="Times New Roman, Times, serif"> <a href="#a73">Item  17.</a></font></td>
 <td width="85%"><font size="2" face="Times New Roman, Times, serif"> <a href="#a73">FINANCIAL STATEMENTS ( * )</a></font></td>
 </tr>
 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a74"> Item  18. </a></font></td>
 <td><p><font size="2" face="Times New Roman, Times, serif"> <a href="#a74">FINANCIAL STATEMENTS  ( ** )</a></font></p> </td>
 </tr>
 <tr>
 <td valign="top"><font size="2" face="Times New Roman, Times, serif"><a href="#a75"> Item  19.</a> </font></td>
 <td><font size="2" face="Times New Roman, Times, serif"><a href="#a75"> EXHIBITS</a></font></td>
 </tr>
 </table>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>

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<TD ALIGN=left WIDTH=5%><font size="1" face="Times New Roman, Times, serif">( * )</font></TD>
<TD WIDTH=95%><font size="1" face="Times New Roman, Times, serif">&nbsp;Omitted pursuant
to General Instructions for Form 20-F.</font></TD>
</TR>
<TR VALIGN=TOP>
<TD ALIGN=left><font size="1" face="Times New Roman, Times, serif">( ** )</font></TD>
<TD><font size="1" face="Times New Roman, Times, serif">The Registrant has responded to Item 18 in lieu of responding to Item 17. </font></TD>
</TR>
</TABLE>



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 <p align="justify"><font face="Times New Roman, Times, serif"><i><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">Certain disclosures
 contained herein including, without limitation, information appearing in &#147;Item 4. Information on the Company&#148;, and in particular &#147;Item
 4&#151;Exploration &amp; Production&#148;, &#147;Item 5&#151;Operating and Financial Review and
 Prospects&#148; and &#147;Item 11&#151;Quantitative and Qualitative Disclosures of Market
 Risk&#148; contain forward-looking statements regarding future events and the future
 results of Eni that are based on current expectations, estimates, forecasts,
 and projections about the industries in which Eni operates and the beliefs
 and assumptions of the management of Eni. Eni may also make forward-looking
 statements in other written materials, including other documents filed
 with or furnished to the U.S. Securities and Exchange Commission (the &#147;SEC&#148;).
 In addition, Eni's senior management may make forward-looking statements orally
 to analysts, investors, representatives of the media and others. In particular,
 among other statements, certain statements with regard to management
 objectives, trends in results of operations, margins, costs, return on capital,
 risk management and competition are forward looking in nature. Words such
 as &#145;expects', &#145;anticipates', &#145;targets', &#145;goals', &#145;projects', &#145;intends', &#145;plans', &#145;believes', &#145;seeks', &#145;estimates',
 variations of such words, and similar expressions are intended to identify
 such forward-looking statements. These forward-looking statements are
 only predictions and are subject to risks, uncertainties, and assumptions
 that are difficult to predict because they relate to events and depend on
 circumstances that will occur in the future. Therefore, Eni's actual results
 may differ materially and adversely from those expressed or implied in any
 forward-looking statements. Factors that might cause or contribute to such
 differences include, but are not limited to, those discussed in this Report
 under the section entitled &#147;Risk
 Factors&#148; and elsewhere. Any forward-looking statements made by or on behalf
 of Eni speak only as of the date they are made. Eni does not undertake
 to update forward-looking statements to reflect any changes in Eni's
 expectations with regard thereto or any changes in events, conditions
 or circumstances on which any such statement is based. The reader should,
 however, consult any further disclosures Eni may make in documents it files
 with the SEC. </font></i></font></p>
<a name="a01"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
 <div align="center"><b><font size="2" face="Times New Roman, Times, serif">CERTAIN
 DEFINED TERMS
 </font></b></div>
 <div align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 this Form 20-F, the term &#147;Eni&#148; refers to Eni SpA and its consolidated
 subsidiaries and, unless the context otherwise requires, their respective predecessor
 companies. All references to &#147; Italy &#148; or the &#147;State&#148; are references to the
 Republic of Italy, all references to the &#147;Government&#148; are references to the
 government of the Republic of Italy . For definitions of certain oil and gas
 terms used herein and certain conversions, see &#147;Certain Oil and Gas Terms&#148; and &#147;Conversion
 Table&#148;. <br>
 <br>
 </font></div>
<a name="a02"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
 <div align="center"><b><font size="2" face="Times New Roman, Times, serif">PRESENTATION OF FINANCIAL AND OTHER INFORMATION
</font></b></div>
 <div align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise indicated, the financial information contained herein has
 been prepared in accordance with Eni Group accounting policies which are in
 accordance with principles prescribed by Italian law and supplemented by the
 accounting principles issued by the <i>Consiglio Nazionale dei Dottori Commercialisti
 e dei Ragionieri </i> or, in the absence thereof and if applicable, the International
 Accounting Standards Board (collectively, &#147;Italian GAAP&#148;). For further details
 see Note 2 to the Consolidated Financial Statements. As described in Note 27
 to the Consolidated Financial Statements, Italian GAAP differ in certain significant
 respects from accounting principles generally accepted in the United States
 (&#147;U.S. GAAP&#148;). Unless otherwise indicated, any reference herein to &#147;Consolidated
 Financial Statements&#148; is to the Consolidated Financial Statements of Eni (including
 the Notes thereto) included herein. </font></div>
 <div align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
 otherwise specified or the context otherwise requires, references herein to &#147;dollars&#148;, &#147;$&#148;, &#147;U.S. dollars&#148; and &#147; U.S. $&#148; are to the currency
 of the United States and references to &#147;euro&#148; and &#147;&#128;&#148; are to the currency
 of the European Monetary Union. <br>
 <br>
 </font></div>
<a name="a03"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
 <div align="center"><font size="2" face="Times New Roman, Times, serif"><b>STATEMENTS REGARDING COMPETITIVE POSITION </b></font></div>
 <p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statements
 made in &#147;Item 4&#151;Information on the Company&#148;,
 referring to Eni's competitive position are based on the company's
 belief, and in some cases rely on a range of sources, including investment
 analysts' reports, independent market studies and Eni's internal assessment
 of market share based on publicly available information about the financial
 results and performance of market participants. Market share estimates contained
in this document are based on management estimates unless otherwise indicated.</font></p>
<a name="a04"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
 <p align="center"><b><font size="2" face="Times New Roman, Times, serif">GLOSSARY</font> </b></p>
 <p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A glossary of oil and gas terms is available on Eni's web
 page at the address www.eni.it . Below is a selection of the most frequently used terms. </font></p>
 <p><i><font face="Times New Roman, Times, serif" size="2"><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Financial Terms</b></font></i></p>



<table width="100%"  cellspacing="2" cellpadding="0">
    <tr>
    <td width="30%" valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Leverage </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> It
    is a non-GAAP measure of a company's financial condition, calculated
    as the ratio between net borrowings and shareholders' equity, including
    minority interests. For a discussion of the usefulness of this measure
    and its reconciliation with the most directly comparable GAAP measure,
see &#147;Item 5 &#150; Financial condition&#148;. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td width="30%" valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Net borrowings </i> </font></td>
    <td width="70%"><p align="justify"><font size="2" face="Times New Roman, Times, serif">Eni evaluates
    its financial condition by reference to &#147;net borrowings&#148;,
    which is a non-GAAP measure. Eni calculates net borrowings as total finance
    debt less: cash, cash equivalents and certain very liquid investments
    not related to operations, including among others non-operating financing receivables
    and securities not related to operations.
    Non operating financing receivables consist of amounts due to Eni's
    financing subsidiaries from banks and other financing institutions and
    amounts due to other subsidiaries from banks for investing purposes and
    deposits in escrow. Securities not related to operations consist primarily
    of government and corporate securities. For a discussion of the usefulness
    of this measure and its reconciliation with the most directly comparable
GAAP measure, see &#147;Item 5 &#150; Financial condition&#148;. </font></p></td>
   </tr>
</table>
 <p><i><b><font size="2" face="Times New Roman, Times, serif"> </font></b><font face="Times New Roman, Times, serif"><b><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"></font></b></font><b><font size="2" face="Times New Roman, Times, serif">Business
 terms</font></b></i></p>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=top>
     <TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><i>Associated gas</i></FONT></TD>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Natural gas, occurring in the form of a gas cap, overlying an oil zone, contained in the reservoir&#146;s crude oil gas</FONT></TD></TR>
</TABLE>
<BR>
<table width="100%"  cellspacing="2" cellpadding="0">
    <tr>
    <td width="30%" valign="top"><font size="2" face="Times New Roman, Times, serif"> <i>Average reserve life index </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif">
Ratio between the amount of reserves at the end of the year and total production for the year.
 </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></div></td>
   </tr>
    <tr>
    <td width="30%" valign="top"> <font size="2" face="Times New Roman, Times, serif"> <i>Barrel </i>  </font></td>
    <td width="70%"><p align="justify"><font size="2" face="Times New Roman, Times, serif">
Volume unit corresponding to 159 liters. A barrel of oil corresponds to about 0.137 metric tons.
 </font></p></td>
   </tr>
    <tr>
    <td valign="top">&nbsp;</td>
    <td>&nbsp;</td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Boe </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Barrel of Oil Equivalent. It is used as a standard unit measure for
    oil and natural gas. The latter is converted from standard cubic meters
    into barrels of oil equivalent using a certain coefficient (see "Conversion Table"). </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Concession contracts </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Contracts currently applied mainly in Western countries regulating
    relationships between States and oil companies with regards to hydrocarbon
    exploration and production. The company holding the mining concession
    has an exclusive on mining activities and for this reason it acquires
    a right on hydrocarbons extracted, against the payment of royalties on
production and taxes on oil revenues to the State. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Condensates </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> These are light hydrocarbons produced along with gas that condense
to a liquid state at surface temperature and pressure. </font></div></td>
   </tr>
    <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Conversion capacity </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Maximum amount of heavy fractions that can be processed in certain
dedicated facilities of a refinery to obtain finished products. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Deep waters </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Waters deeper than 200 meters. </font></div></td>
   </tr>
    <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Development </i> </font></td>
    <td><p align="justify"><font size="2" face="Times New Roman, Times, serif">Drilling and other post - exploration activities aimed at the production
of oil and gas. </font></p></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>EPC </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Engineering, Procurement, Construction. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>EPIC </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Engineering, Procurement, Installation, Construction. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Exploration </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Oil and natural gas exploration that includes land surveys, geological
    and geophysical studies, seismic data gathering and analysis and well
drilling. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Infilling wells </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Infilling wells are wells drilled in a producing area in order to
    improve the recovery of hydrocarbons from the field and to maintain and/or
increase production levels. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>FPSO</i></font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Floating Production Storage and Offloading System. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>LNG </i> </font></td>
    <td><p align="justify"><font size="2" face="Times New Roman, Times, serif">Liquefied Natural
    Gas obtained through the cooling of natural gas to minus 160&deg; C
    at normal pressure. The gas is liquefied to allow transportation from
    the place of extraction to the sites at which it is transformed and
consumed. One ton of LNG corresponds to 1,400 cubic meters of gas. </font></p></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>LPG </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Liquefied Petroleum Gas, a mix of light petroleum fractions, gaseous
    at normal pressure and easily liquefied at room temperature through limited
compression. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Margin </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> The difference between the average selling price and direct acquisition
    cost of a finished product or raw material excluding other production
    costs (e.g. refining margin, margin on distribution of natural gas and
    petroleum products or margin of petrochemicals products). Margin trends
    reflect the trading environment and are, to a certain extent, a gauge
of industry profitability. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Mineral Storage </i> </font></td>
    <td><p align="justify"><font size="2" face="Times New Roman, Times, serif">According to Legislative Decree No. 164/2000, these are volumes
    required for allowing optimal operation of natural gas fields in Italy
    for technical and economic reasons. The purpose is to ensure production
    flexibility as required by long-term purchase contracts as well as to
cover technical risks associated with production. </font></p></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Modulation Storage </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> According to Legislative Decree No. 164/2000, these are volumes required
for meeting hourly, daily and seasonal swings of demand. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Network Code </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> A Code containing norms and regulations for access to, management
and operation of natural gas pipelines. </font></div></td>
   </tr>
    <tr>
    <td valign="top">&nbsp;</td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Over/Under lifting </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Agreements stipulated between partners which regulate the right of
    each to its share in the production for a set period of time. Amounts
    different from the agreed ones determine temporary Over/Under lifting
situations. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"><p><font size="2" face="Times New Roman, Times, serif"><i>Primary balanced refining capacity </i> </font></p>   </td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Maximum amount of feedstock that can be processed in a refinery to
obtain finished products measured in BBL/d. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"><p><font size="2" face="Times New Roman, Times, serif"><i>Production
Sharing Agreement (&#147;PSA&#148;) </i> </font></p>   </td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Contract
    in use in African, Middle Eastern, Far Eastern and Latin American countries,
    regulating relationships between States and oil companies with regards
    to the exploration and production of hydrocarbons. The mining concession
    is assigned to the national oil company jointly with the foreign oil
    company who has exclusive right to perform exploration, development
    and production activities and can enter into agreements with other local
    or international entities. In this type of contract the national oil
    company assigns to the international contractor the task of performing
    exploration and production with the contractor's equipment
    and financial resources. Exploration risks are borne by the contractor
    and production is divided into two portions: &#147;cost oil&#148; is used to recover costs borne by the contractor
    and &#147;profit oil&#148; is divided between contractor and national company according
    to variable schemes and represents the profit deriving from
    exploration and production. Further terms and conditions may vary from
one country to the other. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Proved reserves </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Proved oil and gas reserves are the estimated quantities of crude
    oil, natural gas, and natural gas liquids which geological and engineering
    data demonstrate with reasonable certainty to be recoverable in future
    years from known reservoirs under existing economic and operating conditions,
    i.e., prices and costs as of the date the estimate is made. Prices include
    consideration of changes in existing prices provided only by contractual
    arrangements, but not on escalations based upon future conditions. Proved
    reserves include: (i) proved developed reserves: amounts of hydrocarbons
    that are expected to be retrieved through existing wells, facilities and
    operating methods; and (ii) non developed proved reserves: amounts of
    hydrocarbons that are expected to be retrieved following new drilling,
    facilities and operating methods. Based on these amounts the company has
    already defined a clear development expenditure program which is an expression
of the company's determination to develop existing reserves. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Ship-or-pay </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Clause included in natural gas transportation contracts according
    to which the customer is requested to pay for the transportation of gas
whether or not the gas is actually transported. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Strategic Storage </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> According to Legislative Decree No. 164/2000, these are volumes required
    for covering lack or reduction of supplies from extra-European sources
or crises in the natural gas system. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Take-or-pay </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> Clause included in natural gas supply contracts according to which
    the purchaser is bound to pay the contractual price or a fraction of such
    price for a minimum quantity of the gas set in the contract also in case
    it is not collected by the purchaser. The purchaser has the option of
    collecting the gas paid and not delivered at a price equal to the residual
fraction of the price set in the contract in subsequent contract years. </font></div></td>
   </tr>
    <tr>
    <td valign="top"><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"></font></div></td>
   </tr>
    <tr>
    <td valign="top"> <font size="2" face="Times New Roman, Times, serif"><i>Upstream/Downstream </i> </font></td>
    <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"> The term upstream refers to all hydrocarbon exploration and production
    activities. The term downstream includes all activities inherent to the
oil sector that are downstream of exploration and production activities. </font></div></td>
   </tr>
</table>
 <p>&nbsp; </p>
 <p align="center"><font face="Times New Roman, Times, serif"><b><font size="2">ABBREVIATIONS</font></b> </font></p>
 <p align="justify"><font size="2" face="Times New Roman, Times, serif">BCF = billion cubic feet </font></p>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif">BOE = barrel of oil equivalent </font></p>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif">mmBBL = million barrels </font></p>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif">KBBL/d = thousand barrels per day </font></p>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif">mmCF/d = million cubic feet per day </font></p>
    <p>&nbsp;</p>
<a name="a05"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
    <p align="center"><b><font size="2" face="Times New Roman, Times, serif">CONVERSION TABLE </font></b></p>
    <table WIDTH=80% ALIGN=CENTER cellspacing="4" cellpadding="0">
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">1 acre</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">= 0.405 hectares </font></td>
    <td>&nbsp;</td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">1 barrel</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">= 42 U.S. gallons</font></td>
    <td>&nbsp;</td>
   </tr>
    <tr valign="top">
    <td width="33%"><p><font size="2" face="Times New Roman, Times, serif">1 BOE </font></p></td>
    <td width="33%"> <p><font size="2" face="Times New Roman, Times, serif">= 1 barrel of crude oil </font></p></td>
    <td width="33%"><p><font size="2" face="Times New Roman, Times, serif">= 5,600 cubic feet of natural gas in Italy<sup>(1)</sup></font></p></td>
   </tr>
    <tr valign="top">
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><font size="2" face="Times New Roman, Times, serif">= 5,800 cubic feet of natural gas outside Italy<sup>(1)</sup></font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 barrel of crude oil per day </font></td>
    <td><p><font size="2" face="Times New Roman, Times, serif">= approximately 50 tonnes of crude oil per year </font></p>   </td>
    <td>&nbsp;</td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 cubic meter of natural gas </font></td>
    <td><p><font size="2" face="Times New Roman, Times, serif">= 35.3147 cubic feet of natural gas </font></p>   </td>
    <td>&nbsp;</td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 cubic meter of natural gas </font></td>
    <td><p><font size="2" face="Times New Roman, Times, serif">= approximately 0.0063 barrels of oil equivalent in Italy <sup>(1)</sup> </font></p>   </td>
    <td>&nbsp;</td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><p><font size="2" face="Times New Roman, Times, serif">= approximately 0.0061 barrels of oil equivalent outside Italy <sup>(1)</sup> </font></p>   </td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 kilometer </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = approximately 0.62 miles </font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 short ton </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 0.907 tonnes </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 2,000 pounds </font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 long ton </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 1.016 tonnes </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 2,240 pounds </font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 tonne </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 1 metric ton </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 1,000 kilograms </font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif">&nbsp;</font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = approximately 2,205 pounds </font></td>
   </tr>
    <tr valign="top">
    <td><font size="2" face="Times New Roman, Times, serif"> 1 tonne of crude oil </font></td>
    <td><font size="2" face="Times New Roman, Times, serif"> = 1 metric ton of crude oil </font></td>
    <td><p><font size="2" face="Times New Roman, Times, serif">= approximately 7.3 barrels of crude oil (assuming an API gravity
of 34 degrees) </font></p>   </td>
   </tr>
    </table>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>

<!-- MARKER FORMAT-SHEET="tabela 5 e 95" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1> From
January 1, 2004 in order to conform to the practice of other international
oil companies, Eni unified the conversion rate of natural gas from cubic meters
to BOE. The new rate adopted is 1 barrel of oil equals 5,742 cubic feet of
natural gas. This conversion rate has been determined by management based
on a number of factors. Other oil companies may use a different conversion
rate. The change introduced does not affect the amount of proved reserves
recorded at December 31, 2003 and is expected to have a negligible impact
on production expressed in boe in 2004.</FONT></P></TD>
</TR>
</TABLE>
<a name="a06"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
    <p><b><font size="2">PART I </font></b></p>
<a name="a07"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
    <p align="justify"><font size="2"> <font face="Times New Roman, Times, serif"><b>Item 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISORS</b>    <br>
   </font><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font face="Times New Roman, Times, serif">NOT APPLICABLE </font></font></p>
<a name="a08"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif"> <b>Item 2. OFFER STATISTICS
    AND EXPECTED TIMETABLE </b><br>
   &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOT APPLICABLE </font></p>
<a name="a09"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif"><b>Item
3. KEY INFORMATION</b></font></p>
<a name="a10"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif">           <b>Selected Financial Information </b></font></p>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif">The following tables show Eni selected historical financial data as of
    and for the years ended December 31, 1999 through 2003. The selected historical
    financial data are derived from Eni Consolidated Financial Statements which
    have been prepared in accordance with Italian GAAP, which differs in certain
    significant respects from US GAAP. For further information on the differences
    between Italian GAAP and US GAAP as they relate to Eni, please refer to
   Note 27 to Eni Consolidated Financial Statements.</font></p>

<TABLE WIDTH=80% ALIGN=CENTER BORDER=0 CELLPADDING=0 CELLSPACING=2>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="5" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Years
ended December 31,</B> </FONT></TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT colspan="5"><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD width="50%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"> </TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"> </TD>
     <TD ALIGN=RIGHT><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
        <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
        <TD colspan="5" ALIGN=center> <p><FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>(million </B>&#128; <B>except
number of shares and per share and per ADS data)</B> </FONT> </p></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>CONSOLIDATED INCOME STATEMENT DATA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amounts in accordance with Italian GAAP:</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations<SUP>(1)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31,008&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,938&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48,925&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,922&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,487&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income<SUP>(2)</SUP>: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,834&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,603&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,984&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,175&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,746&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas &amp; Power<SUP>(3)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,580&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,178&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,672&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,244&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,627&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">478&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">986&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">985&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">321&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">583&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(362) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(332) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(126) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(176) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">149&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">144&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">255&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">298&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">311&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(201) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(279) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(199) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(143) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(168) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(209) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(295) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,480&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,772&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,396&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,502&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,517&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before extraordinary items and income taxes<SUP>(4)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,579&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,869&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,378&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,346&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income<SUP>(3) (4)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,857&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,771&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,751&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,593&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,585&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Data
per ordinary share (&#128;) <sup>(5)</sup>:</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.36&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.70&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.66&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.22&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.52&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before extraordinary items and income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.40&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.72&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.54&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.19&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.47&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income: basic and diluted </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.71&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.44&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.98&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.48&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Data per ADS ($) <sup>(6)</sup>:</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.92&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.66&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.83&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.65&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.86&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before extraordinary items and income taxes<SUP>(3)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.04&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.77&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.39&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.48&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.58&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income: basic and diluted </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.61&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.79&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.82&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.31&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amounts
in accordance with U.S. GAAP (&#128;):</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28,369&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">45,488&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">45,848&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43,632&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48,018&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income <sup>(7)</sup> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,880&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,819&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,853&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,861&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,215&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before cumulative effect of change</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">in accounting principle and income taxes <SUP>(3)</SUP>: </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,912&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,067&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,330&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,350&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,274&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income before cumulative effect of change in accounting principle </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,098&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effect of adoption of SFAS No. 143 </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">198&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,873&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,758&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,317&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,292&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,296&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Data
per ordinary share (&#128;):</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.18&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.42&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.26&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.05&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.44&nbsp; </FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before cumulative effect of change </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE="1">in accounting principle and income taxes <SUP>(3)</SUP>: </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.22&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.52&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.64&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.18&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.45&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income before cumulative effect of change in accounting principle: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;basic and diluted </FONT></TD>
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.61 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income: basic and diluted </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.72&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.44&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.62&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.38&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.67&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Data per ADS ($) <sup>(6)</sup>:</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income: </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.96&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.36&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.08&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.77&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.36&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD colspan="6" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before cumulative effect of change </FONT></TD>
     </TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT SIZE="1">in accounting principle and income taxes<SUP>(3)</SUP>:</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.20 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.83 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.76 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.44 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.46 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan="6"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income before cumulative effect of change in accounting principle: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;basic and diluted </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.17 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income: basic and diluted </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.63 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.77 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.19 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.50 </FONT></TD></TR>
</TABLE>
<br>
<TABLE WIDTH=80% ALIGN=CENTER BORDER=0 CELLPADDING=0 CELLSPACING=2>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="5" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>As of December
31,</B>&nbsp; </FONT> </TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT colspan="6"><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD width="50%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT></TD>
     <TD width="10%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="5" ALIGN=center> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>(million &#128; except
number of shares and dividend information)</B> </FONT> </TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>CONSOLIDATED BALANCE SHEET DATA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amounts in accordance with Italian GAAP:</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total assets, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46,197&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56,363&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62,736&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65,808&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67,336&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Short-term and long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,551&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,044&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,819&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,420&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,254&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital stock issued </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,133&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,133&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,001&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,002&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,003&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amounts in accordance with U.S. GAAP:</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total assets, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,612&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57,257&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64,976&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66,122&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71,995&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Short-term and long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,389&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,810&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,379&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,320&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,144&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital stock issued </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,133&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,133&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,001&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,002&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,003&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other Financial Information</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditure </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,483&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,431&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,577&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,048&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,802&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments (including net borrowings of acquired companies) <sup>(8)</sup> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">114&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,384&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,664&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,366&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,255&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Weighted average number of ordinary shares outstanding (shares million) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,001&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,994&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,912&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,827&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,778&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividend per share (&#128;) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.362&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.424&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.750&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.750&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.750&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividend per ADS ($) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.70&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.81&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.71&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.72&nbsp; </FONT></TD></TR>
</TABLE>

<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>
<table WIDTH=100% ALIGN=CENTER cellspacing="2" cellpadding="0">
<tr valign="top">
<td width="5%"><font size="1" face="Times New Roman, Times, serif">(1)</font></td>
<td width="95%"> <div align="justify"><font size="1" face="Times New Roman, Times, serif">Eni
is a party to certain Production Sharing Agreements (PSAs)
whereby a portion of Eni's share of oil and gas production is withheld and
sold by its joint-venture partners which are state-owned entities, with
proceeds being remitted to the state in satisfaction of Eni's PSA-related
tax liabilities. Revenue and income taxes include such taxes owed by Eni
but paid by state-owned entities out of Eni's share of oil and gas production.
Starting in 1999, in order to be consistent with international practices,
Eni began classifying the value of production equivalent to such taxes as
revenues and the associated taxes in the appropriate income tax account.
See &#147;Item 4&#151;Exploration &amp; Production&#151;Oil
and Natural Gas Reserves&#151;Note 1 on page 26&#148;. </font></div></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(2)</font></td>
<td> <div align="justify"><font size="1" face="Times New Roman, Times, serif">As
compared to 2002, in 2003 Eni's activities have been grouped
differently: Syndial (former EniChem) has now been included in the &#147;Other activities&#148; segment,
which includes all Eni companies not included in specific segments (such as,
among others, EniData, Sieco, Tecnomare, EniTecnologie, Eni Corporate University,
AGI); the new &#147;Corporate and financial companies&#148; segment has been created,
which includes Eni Corporate, Sofid and the financial companies formerly included
in the &#147;Other Activities&#148; segment. In order to allow for comparability
with the prior year, data for 2002 have been reclassified accordingly;
data of years before 2002 have not been reclassified as it is impractible to restate segment
information for earlier periods. </font></div></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(3)</font></td>
<td> <div align="justify"><font size="1" face="Times New Roman, Times, serif">Legislative
Decree No. 164 dated May 23, 2000 requires Eni to unbundle
its transmission and distribution activities from other businesses in the
Natural Gas segment. In connection with such decree, Eni arranged for an
independent appraisal of its transmission and distribution assets which
resulted in estimates of the useful lives of such assets (40 years for pipelines
and 50 for distribution networks). Such useful lives have also been confirmed
by various reports issued by the Italian Authority for Electricity and Gas.
Effective January 1, 2000, assets related to transmission and distribution
activities are now depreciated based on the useful lives established by
the aforementioned appraisal and no longer on the basis of useful lives
established by the Ministry of Economy and Finance based on technical studies
conducted for homogeneous industries (10% and 8% for pipelines and distribution
networks, respectively). In 2001, this lower rate of depreciation resulted
in an increase in operating income amounting to euro 663 million, an increase
in income before minority interest amounting to euro 396 million and an
increase in net income amounting to euro 312 million. Also note that effective
from January 2002, the new Gas &amp; Power
division is responsible for Eni's natural gas and electricity generation activities.
For comparability, results of operations and financial data of the Natural
Gas and Electricity Generation segments, which were reported separately until
year 2001, have been aggregated in the new Gas &amp; Power segment. </font></div></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(4)</font></td>
<td> <div align="justify"><font size="1" face="Times New Roman, Times, serif">Extraordinary income (expense) is as defined under Italian GAAP. These
items would not qualify as extraordinary under U.S. GAAP. See Notes 27 and
28 to the Consolidated Financial Statements. </font></div></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(5)</font></td>
<td><p align="justify"><font size="1" face="Times New Roman, Times, serif">Euro
per Share or dollars per American Depositary Share (ADS),
as the case may be. Eni Shareholders' Meeting held on June 1, 2001 resolved
to convert the nominal value of Eni Shares into euro by applying the fixed
exchange rate of 1936.27 lire per euro; reduce the resulting nominal value
of each share from euro 0.516 to euro 0.5; and group two shares of nominal
value euro 0.5 into one share with nominal value of 1 euro. The conversion,
due to EU requirements, was effective from June 18, 2001 . Starting from
the same date, each ADS represents five Eni Shares. Consequently, all earnings
per Share and earnings per ADS amounts in this selected financial data corresponding
to prior periods have been restated to reflect the 2 for
1 reverse stock split. Earnings per share is calculated by dividing net
income by the weighted-average number of shares issued and outstanding during
the year, excluding treasury shares. In order to compare earnings per share
to previous years, the number of shares issued through stock grants made
in 2000, 2001 and 2002 has been added to the number of shares outstanding
in previous years. The dilutive effect of potential ordinary shares when
converted into shares underlying the outstanding stock options on earnings
per share is not material. See Note
29 to the Consolidated Financial Statements &#151; Stock Compensation. </font></p></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(6)</font></td>
<td> <div align="justify"><font size="1" face="Times New Roman, Times, serif">The
financial statements are stated in euro. The translations
of certain euro amounts into U.S. dollars are included solely for the convenience
of the reader. The convenience translations should not be construed as representations
that the euro amounts have been, could have been, or could
in the future be, converted into US dollars at this or any other rate of
exchange. Data per ADS, with the exception of dividend per ADS in the years 1999 to 2002,
were translated at the Noon Buying Rate of December 31 for each year presented
($1.2597 = &#128; 1.00
at December 31, 2003 ). Dividend per ADS for the years 1999 through
2002 has been translated into U.S. dollars using for each year
presented the Noon Buying Rate of the payment date. On June
11, 2004 , the Noon Buying Rate was U.S. dollars 1.2011 = euro 1.00. </font></div></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(7)</font></td>
<td> <div align="justify"><font size="1" face="Times New Roman, Times, serif">
See Note 28 to the  Consolidated  Financial  Statements  for details of operating  income under U.S. GAAP by
    business segment for the last three years.
</font></div></td>
</tr>
<tr valign="top">
<td></td>
<td></td>
</tr>
<tr valign="top">
<td><font size="1" face="Times New Roman, Times, serif">(8)</font></td>
<td> <div align="justify"><font size="1" face="Times New Roman, Times, serif">This
item refers mainly to the acquisition cost of net equity of
other companies and includes also the net borrowings of companies acquired.
In 2003, it includes also the outlay for the tender offer
for Italgas shares (euro 2,569 million). For a discussion of net borrowings,
see &#147;Item 5 Financial conditions&#148;. </font></div></td>
</tr>
</table>

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<P STYLE="PAGE-BREAK-BEFORE: always">
<a name="a11"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<p><b><font size="2" face="Times New Roman, Times, serif">Selected Operating Information </font></b></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table
below sets forth selected operating information with respect to Eni's proved
reserves, developed and undeveloped, of crude oil (including condensates and
natural gas liquids) and natural gas, as well as other data, for the years
ended and at December 31, 1999, 2000, 2001, 2002 and 2003. Such estimates of
proved reserves have been prepared in accordance with Statement of Financial
Accounting Standards No. 69 (&#147;SFAS 69&#148;).
See the unaudited supplemental oil and gas information in Note 29 to
the Consolidated Financial Statements. </font></p>

<TABLE WIDTH=80% ALIGN=CENTER BORDER=0 CELLPADDING=0 CELLSPACING=2>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="5" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Years
ended December 31,</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="6" ALIGN=RIGHT>&nbsp;
<hr size="1"> </TD>
    </TR>
<TR VALIGN=Bottom>
     <TD width="45%" ALIGN=LEFT>&nbsp; </TD>
     <TD width="9%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999</B> </FONT></TD>
     <TD width="9%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT></TD>
     <TD width="9%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT></TD>
     <TD width="9%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT></TD>
     <TD width="9%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD>
     <TD ALIGN=RIGHT><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Proved
reserves at period end of: oil (mmBBL) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,137&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,422&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,948&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,783&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,138&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><div align="right"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">natural gas (BCF)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></div></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,665 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,772 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17,072 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,629 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,008 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Proved reserves of hydrocarbons in mmBOE at <br> period end<SUP>(1)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,534 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,008 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,929 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,030 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,272 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Finding and development costs per BOE <br>
(three-year average)<SUP>(2)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.43 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.35 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.28 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.78 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.12 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserve replacement ratio<SUP>(3) </SUP>(three-year average) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">174 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">173 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">226 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">204 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">181 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserve life index<SUP>(4)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.7 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.2 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.7 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average
daily production of oil (KBBL/d) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">674&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">748&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">857&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">981&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><div align="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average daily production available for sale of natural gas (mmCF/d)<SUP>(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</SUP> </FONT></div></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,209 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,493 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,827 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,015 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,174 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average daily production of hydrocarbons (KBOE/d)<SUP>(5)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,064 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,187 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,353 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,449 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,536 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oil and gas production costs per BOE<SUP>(6)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.64 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.61 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.85 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.83 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.16 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Profit per barrel of oil equivalent<SUP>(7)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.11 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.86 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.48 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.08 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.95 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Natural gas sales to third parties in primary distribution<SUP>(8)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61.96 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.44 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.12 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Natural gas consumed by Eni<SUP>(8)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
         <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.02 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.90 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Natural gas sales in secondary distribution<SUP>(8)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.67 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.48 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.79 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.44 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Natural
gas sales to third parties and natural gas consumed by Eni<SUP>(8)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.73 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.87 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71.46 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Third-party transport of natural gas in Italy<SUP>(8)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.90 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.45 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.41 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19.84 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24.63 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Length of natural gas transport network in Italy at
period end<SUP>(9)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29.1 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29.6 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29.8 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.1 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Electricity production sold<SUP>(10)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,77 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,99 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,00 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.55 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refined products production<SUP>(11)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38.31 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38.89 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37.78 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.55 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.52 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Balanced capacity of wholly&#150;owned refineries<SUP>(12)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">664 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">664 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">664 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">504 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">504 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capacity utilization of wholly&#150;owned refineries<SUP>(13)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">99 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">97 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">99 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Number of service stations at period end (in Italy and outside Italy) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,489 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,085 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,707 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,762 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,647 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average throughput per service station (in Italy and outside Italy)<SUP>(14)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,543 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,555 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,621 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,674 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,771 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals production<SUP>(15)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.30 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.53 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.83 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.12 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.91 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering order backlog at period end<SUP>(16)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,439 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,638 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,937 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,065 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,405 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Employees at period end (units) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">72,023 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69,969 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">70,948 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80,655 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76,521 </FONT></TD></TR>
</TABLE>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>
<table WIDTH=100% ALIGN=CENTER cellspacing="2" cellpadding="0">
<tr>
<td width="5%" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1) </FONT></td>
<td width="95%"><p align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1">Includes
approximately 756, 783, 728, 779 and 747 BCF of natural gas held in storage
in Italy at December 31, 1999, 2000, 2001, 2002 and 2003 respectively. See &#147;Item 4&#151;Information on the Company&#151;Exploration
and Production&#151;Storage&#148;. For 1999 data see &#147;Item 4&#151;Information on the Company&#151;Exploration &amp; Production&#151;Oil
and Natural Gas reserves&#151;Note 1 on page 26. </FONT> </p></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2) </FONT></td>
<td><p align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1">Consists of (i) the sum of costs incurred in respect of (a) acquisitions
of unproved property and (b) exploration and development activities, divided
by (ii) the increase in proved reserves attributable to (a) revisions of
previous estimates, (b) improved recovery and (c) extensions and discoveries,
in each case prepared in accordance with SFAS 69. In 2001, 2002 and 2003,
excluding the purchase cost of unproved property of Lasmo (acquired in year
2001) and Fortum Petroleum (acquired in 2003), as well as cost incurred in
connection with Iranian buy-back contracts in 2002 and 2003, finding and
development costs (three-year average) were 5.33, 5.67 and 6.53 USD/BOE respectively.
See the unaudited supplemental oil and gas information in Note 29 to
the Consolidated Financial Statements. Expressed in dollars. </FONT> </p></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3) </FONT></td>
<td><p align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1">Consists of (i) the increase in proved reserves attributable to (a)
purchases of minerals in place, (b) revisions of previous estimates, (c)
improved recovery and (d) extensions and discoveries, divided by (ii) production
during the year as set forth in the reserve tables, in each case prepared
in accordance with SFAS 69. See the unaudited supplemental oil and gas information
in Note 29 to the Consolidated Financial Statements. Expressed as a percentage. </FONT> </p></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4) </FONT></td>
<td><p align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1">Consists of proved reserves at year-end divided by production during
the year as set forth in the reserve tables, in each case presented in accordance
with SFAS 69. See the unaudited supplemental oil and gas information in Note 29
 to the Consolidated Financial Statements. Expressed on a yearly basis. </FONT> </p></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5) </FONT></td>
<td><p align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1">Natural gas production
volumes exclude gas consumed in operations (94, 132 and 151 mmCF/d in 2001,
2002 and 2003, respectively). See also &#147;Item
4&#151;Information on the Company&#151;Exploration and Production&#151;Production&#151;Notes
1 and 3 on page 27&#148;. </FONT> </p></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Consists of production costs (costs incurred to operate and maintain wells
and field equipment) prepared in accordance with SFAS 69 divided by actual
production net of production volumes of natural gas consumed in operations.
See the unaudited supplemental oil and gas information in Note 29 to the
Consolidated Financial Statements. Expressed in dollars. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Results of operations from oil and gas producing activities, divided by
actual sold production, in each case prepared in accordance with SFAS 69.
See the unaudited supplemental oil and gas information in Note 29 to the
Consolidated Financial Statements. for a calculation of results of operations
from oil and gas producing activities. Expressed in dollars. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(8) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Billions of cubic meters. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(9) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Thousands of kilometers. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Gigawatthour. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(11) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Millions of tons. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(12) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in KBBL/d. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(13) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Production as a percentage of capacity taking into account
scheduled plant shutdowns. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(14) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Thousands of liters per day. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(15) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> Expressed in Millions of tons. For year 2003 and 2002 data see Note 2 in the preceding page. </FONT> </div></td>
</tr>
<tr>
<td valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(16) </FONT></td>
<td><div align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="1"> The sum of the order backlog of Saipem SpA and Snamprogetti
SpA, expressed in millions of euro. </FONT> </div></td>
</tr>
</table>
<a name="a12"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<p align="justify"><font face="Times New Roman, Times, serif"><b><font size="2">Exchange Rates </font></b></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Italy is one of the eleven member states of the European Monetary Union that
entered the single European currency which became effective on January 1, 1999; the other countries are Austria, Belgium, Finland, France, Germany, Ireland,
 Luxembourg, the Netherlands, Portugal and Spain. Greece entered the single
European currency on January 1, 2001. The official fixing rate of the lira
versus the euro is 1,936.27 lire per euro. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth, for the periods indicated, certain information
regarding the Noon Buying Rate in U.S. dollars per euro, rounded to the second
decimal (Source: The Federal Reserve Board).
</font></p>
<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="60%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>At&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>High&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Low&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Average(1)</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Period End</B> </FONT> </TD></TR>
<tr>
     <TD><FONT SIZE="1"><B>&nbsp;</B> </FONT></td>
     <TD><hr size="1"></td>
     <td><hr size="1"></td>
     <td><hr size="1"></td>
     <td><hr size="1"></td></tr>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER" colspan=4> <FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>U.S. dollars per euro</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Year ended December 31 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.18&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.00&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.06&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.01&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.03&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.83&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.92&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.94&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.95&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.84&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.90&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.89&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.05&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.86&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.95&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.05&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.26&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.04&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.26&nbsp; </FONT></TD></TR>
</TABLE>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>
<!-- MARKER FORMAT-SHEET="hang formatado" FSL="Workstation" -->
<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Average
of the Noon Buying Rates for the last business day of each month in the period.</FONT></P></TD>
</TR>
</TABLE>



<br>
<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="70%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>At</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>High&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Low&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Period End</B> </FONT> </TD></TR>
<tr>
     <TD><FONT SIZE="1"><B>&nbsp;</B> </FONT></td>
     <TD><hr size="1"></td>
     <td><hr size="1"></td>
     <td><hr size="1"></td>
     </tr>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER" COLSPAN="3"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>U.S.dollars per euro</B> </FONT> </TD></tr>
<tr>
     <td><FONT SIZE="1">&nbsp; </FONT></td>
     <td><FONT SIZE="1">&nbsp; </FONT></td>
     <td><FONT SIZE="1">&nbsp; </FONT></td>
     <td><FONT SIZE="1">&nbsp; </FONT></td></tr>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2597&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.1956&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2597&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">January 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2853&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2389&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2452&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">February 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2848&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2426&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2441&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">March 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2431&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2088&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2292&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">April 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,2358&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,1802&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,1975&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">May 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2274&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.1801&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2217&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">June 2004 (through June 11, 2004) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2320&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2011&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.2011&nbsp; </FONT></TD></TR>
</TABLE>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fluctuations in the exchange rate between the euro and the dollar affect the
dollar equivalent of the euro price of the Shares on Telematico and the dollar
price of the ADSs on the NYSE. Cash dividends related to fiscal year 2003 will
be paid by Eni SpA in euro in 2004 and exchange rate fluctuations will also
affect the dollar amounts received by owners of ADSs upon conversion by the
Depository of cash dividends paid in euro on the underlying Shares. The Noon
Buying Rate on June 11, 2004 was U.S. dollars 1.2011 = euro 1.00. </font></p>

<a name="a13"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>

<p><font face="Times New Roman, Times, serif"><b><font size="2">Risk Factors</font></b></font></p>
<p><b><i><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Competition; Risks Deriving from the Influence of Italian Regulations on Certain
Eni Business Segments</font> </i></b></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is strong competition worldwide, both within the oil industry and with other
industries, in supplying energy to the industrial, commercial and residential
energy markets. A number of Eni's competitors have merged or may have the intention
to merge and so lead to possibly stronger competition from competitors with
greater financial resources. In its Exploration &amp; Production
business, particularly outside Italy, Eni encounters competition from
other major international oil companies for obtaining exploration and development
rights. In its natural gas business, Eni encounters increasingly strong
competition from both national and international natural gas suppliers, also
following the impact of the liberalization of the Italian natural gas market
introduced by Legislative Decree No. 164/2000 which provides for, among other
things, the opening of the entire Italian market to competition by 2003, limits
to the size of gas companies relative to the market and third parties access
to transport infrastructure. In its electricity business, Eni competes with
other producers from Italy or outside Italy which sell electricity on the Italian
open market. In addition, an uncertain regulatory framework and delays
in the authorization process for the construction of new power plants on the
part of public administrations prevent operators, including Eni, from fully
deploying their growth plans in the electricity business according to schedule.
Eni faces competition from several major international oil companies in its
refinery and refined product marketing businesses. In the retail market, Eni
competes with third parties both in Italy and outside Italy (including major
international oil companies, companies owned by oil producing nations and local
operators) to obtain concessions to establish and operate service stations.
Once established, Eni's service stations compete primarily on the basis of
services and availability of non-petroleum products. In Italy plans for the
upgrading and efficiency improvement of the national service station network
can advance only in accordance with the evolution of the regulatory framework,
which lags behind that of other major European countries. Eni also faces significant
competition from certain international operators in the oilfield services,
construction and engineering industries. Such competition is primarily on the
basis of technical expertise, quality and number of services and availability
of technologically advanced facilities (for example vessels for offshore construction). </font></p>
<p align="justify"><b><i><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cyclicality of Petrochemical Industry; Regional and Competitive Risks for
Eni Petrochemical Activities </font></i></b></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The petrochemical industry is subject to cyclical fluctuations in demand,
with consequent effects on prices and profitability exacerbated by the highly
competitive environment of the industry. Eni's petrochemicals operations, which
are located mainly in Italy, have been in the past and may in the future be
adversely affected by worldwide excess installed production capacity, as well
as by economic slowdowns in many industrialized countries. The dislocation of
petrochemical activities to geographical areas like the Far East and oil producing
countries which provide long term competitive advantages has weakened the competitiveness
of petrochemicals operations in industrialized countries, including Eni's own
petrochemical operations. Petrochemical operations in industrialized countries
are also less competitive than those located in the above-mentioned areas due
to stricter regulatory frameworks and growing environmental concerns which prevail
in industrialized countries. </font></p>
<p><i><b><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Political and Economic Considerations </font></b></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The production of oil and natural gas requires high levels of capital expenditure
and entails particular economic risks and opportunities. It is subject to natural
hazards and other uncertainties including those relating to the physical characteristics
of oil or natural gas fields. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The production of oil and natural gas is highly regulated and is subject to
intervention by governments throughout the world in matters such as the award
of exploration and production interests, the imposition of specific drilling
and other work obligations, environmental protection measures, control over
the development and abandonment of fields and installations, and restrictions
on production. In addition, the oil and gas industry is subject to the payment
of royalties and excise duties, which tend to be higher than those payable in
respect of many other commercial activities. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crude oil prices are subject to international supply and demand and other
factors that are beyond Eni's control. OPEC member countries control production
of a significant portion of the worldwide supply of oil and can exercise substantial
influence over its price levels. International geopolitical tensions and political
developments, including sanctions imposed on certain oil-producing countries
on the basis of resolutions of the United Nations, can also affect world supply
and prices of oil. Such factors can also affect the prices of natural gas because
such prices are typically tied to the prices of certain refined petroleum products.
Lower crude oil prices have an adverse impact on Eni's results of operations. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Substantial portions of
Eni's hydrocarbons reserves are located in countries outside the EU and North
America, certain of which may be politically or economically less stable than
EU or North American countries. At December 31, 2003, approximately 70% of
Eni's proved hydrocarbons reserves were located in such countries. See &#147;Item
4 &#151;Exploration &amp; Production&#151;Oil and Natural Gas Reserves&#148;. Similarly, a
substantial portion of Eni's natural gas supply comes from countries outside
the EU and North America . In 2003, approximately 28% of Eni's domestic supply
of natural gas came from such countries. See &#147;Item 4 &#151;Gas &amp; Power&#151;Natural
Gas Supplies&#148;. In August 1996, the United States adopted the Iran and Libya
Sanctions Act (the &#147;Sanctions Act&#148;). The Sanctions Act requires the President
of the United States to impose at least two sanctions from a six&#150;sanction menu
under certain circumstances against companies which engage in trade with or
investment activities in Libya and Iran. The Sanctions Act is expected to expire
on August 5, 2006. Under the Sanctions Act, sanctions against Libya are expected
to be applied until the President of the United States decides that Libya has
complied with UN resolutions No. 731 of 1992 and No. 883 of 1993. Recent signs
of a new Libyan attitude to the solution of existing controversies have led
the UN to suspend Resolutions No. 731 and 883. Recently also the United States
have been changing their attitudes towards Lybia as witnessed by the lifting
of Lybian economic sanctions administered by the U.S. Treasury Department's
Office of Foreign Assets Control on April 23, 2004. Eni does not believe that
the Sanctions Act will have a material adverse effect on its financial condition
or results of operations. For a description of Eni's operations in Libya and
Iran see &#147;Item 4 &#151; Information on the Company&#151;Exploration and Production&#151; North
Africa and Rest of the World.&#148; </font></p>
<p align="justify"><FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liberalization of the Italian Natural Gas Market</I></B> </FONT> </p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislative Decree n. 164 dated May 23, 2000 introduced rules for the liberalization
of the Italian natural gas market which have a significant impact on Eni's activity,
as the company is present in all the phases of the natural gas chain. The decree,
among other things, establishes: </font></p>
<div align="justify">
<ul>
<li>
<p><font size="2" face="Times New Roman, Times, serif">opening of the entire market to competition by 2003; this means that all
customers in Italy are free to chose their supplier of natural gas
since the start of the year; </font></p>
</li>
<li>
<p><font size="2" face="Times New Roman, Times, serif">until December 31, 2010 antitrust thresholds for operators calculated as
a percentage share of national consumption set as follows: (i) effective
January 1, 2002, 75% for imported or domestically produced natural
gas volumes input in the national transport network and destined to sales;
this percentage is to decrease by 2 percentage points per year until it reaches
61% in 2009; (ii) effective January 1, 2003, 50% for sales to final customers.
These ceilings are calculated on a three-year base net of losses (in the case
of sales) and volumes of natural gas consumed in own operations. In accordance
with article 19, line 4 of Legislative Decree No. 164/2000 the volumes of natural
gas consumed in own operations by a company or its subsidiaries are excluded
from the calculation of ceilings for sales to end customers and for volumes
input into the Italian network to be sold in Italy; </font></p>
</li>
<li>
<p><font size="2" face="Times New Roman, Times, serif">the Authority for Electricity and Gas determines criteria for transport,
dispatching, storage, use of LNG terminals and tariffs for natural
gas for distribution by means of local networks; and </font></p>
</li>
<li>
<p><font size="2" face="Times New Roman, Times, serif">third parties are allowed to access infrastructure according to set conditions. </font></p>
</li>
</ul>
    <div align="justify">
    <p><i><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2" face="Times New Roman, Times, serif">Eni's natural
gas margin<sup>(1)</sup> in Italy may decrease permanently compared to historical levels </font></i></p>
    </div>
</div>

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<div ALIGN=justify><FONT FACE="Times New Roman" SIZE=2>_______________
</FONT></div>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT> </TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="1">For
a definition of margin in this document, see "Glossary". </FONT> </TD>
</TR>
</TABLE>
<BR>

<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to meet the medium and long-term demand of natural gas, and in particular
of the Italian market, Eni entered into long-term purchase contracts with
producing countries that currently have a residual average term of approximately
17 years. Existing contracts, which in general contain take-or-pay clauses,
will ensure a total of about 67.3 billion cubic meters of natural gas per year
( Russia 28.5, Algeria 21.5, Netherlands 10, Norway 6 and Nigeria 1.5) by 2008.
The above quantities are based on the annual contract quantity of the relevant
contract. The average annual minimum quantity is approximately 85% of said
quantities. In order to comply with the above mentioned regulatory thresholds
relating to volumes input to the national transport network, Eni signed multi-annual
contracts with third party importers to sell natural gas volumes exceeding
said thresholds outside of the Italian territory; in prior years these volumes
were imported into Italy and sold to Italian consumers by Eni. This change
in the sale mix is structural and adversely affects Eni's results of operations.
Further, management expects Eni's margins on natural gas in Italy to come under
pressure in future years due to the entry into the market of new competitors
including the above mentioned third parties which purchase natural gas from
Eni outside the Italian territory and resell it to Italian customers. </font></p>
<p align="justify"> <font size="2"><i><font face="Times New Roman, Times, serif"><br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni growth prospects in Italy
are limited by regulation </font></i></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Due to the antitrust threshold on direct sales in Italy , management expects
Eni's natural gas sales in Italy to increase at a rate that cannot exceed the
growth rate of natural gas demand in Italy . Management believes all these
developments might have a material adverse impact on Eni's results of operations. </font></p>
<p align="justify"><i><br>
    <font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni may not be able to sell in Italy all the natural gas volumes it planned
to import and, as a consequence, it may be unable to sell all natural gas volumes
which Eni is committed to purchase under take-or-pay contract obligations </font></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
date Eni's natural gas supply contracts have entailed the application of take-or-pay
clauses only once in year 2003; the relevant cash outlay following the application
of the pay clause on that circumstance was not material. See &#147;Item
5 - Management expectations of operations&#148;. Natural gas imports for the next
few years have been planned based on the highest flexibility allowed by long
term supply contracts, assuming that access capacity to the Italian network
will be available in accordance with said flexibility. However, this assumption
may be inconsistent with the current network code as established by the Authority
for Electricity and Gas with decision No. 137 of July 17, 2002 , in implementation
of article 24, line 5 of Legislative Decree No. 164/2000. Decision No. 137 established
priority criteria for the entitlement of transmission capacity at entry points
from international networks into the domestic network. Entitlement periods can
last no longer than five years. In particular it recognises priority access
to take-or-pay contracts entered into before 1998, within the limit of the average
daily contractual quantity. There is therefore no guaranteed access priority
for the whole contractual flexibility. In fact, take-or-pay contracts entered
into by Eni before 1998 envisage Eni's right to withdraw daily amounts larger
than the average daily contractual amount; this contractual flexibility provided
by the difference between the maximum daily amount Eni is entitled to and the
average contractual daily amount is used in particular in winter. In the event
of congestion at entry points, natural gas volumes not receiving a priority
are assigned available transmission capacity on a pro-rata basis. Decision No.
137 establishes a transitional regime according to which for thermal year 2003-2004
access priority is granted also for one third of the difference between maximum
contractual daily amounts and average daily amounts. On November 6, 2002 Eni
filed a claim with the Regional Administrative Court of Lombardia requesting
the annulment of decision No. 137/2002 as Eni considers this decision inconsistent
with the overall rationale of the European natural gas framework, especially
with reference to Directive 98/30/CE and Legislative Decree No. 164/2000, which
key provisions have been reaffirmed by the recently enacted Directive 2003/55/CE.
See &#147;Item 4 &#150; Regulation &#150; Natural Gas&#148;. In case of an unfavourable outcome
of this matter, management believes that Eni's results of operations could be
negatively affected should market conditions prevent Eni from selling its whole
availability of natural gas under take-or pay contract obligations. See &#147;Item
5&#151;Management Expectations of Operations&#148;. </font></p>
<p align="justify"><i><br>
    <font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni may be required to upgrade the infrastructure for natural gas import
creating an oversupply of natural gas in the long term (beyond 2007) </font></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
November 21, 2002 the Italian Antitrust Authority concluded an inquiry started
on request of Blugas SpA concerning Eni's alleged violation of competition
rules. The Antitrust Authority judged that Eni had violated these rules for
having given, with the aim of respecting binding market thresholds, priority
access to Italian purchasers with which Eni had entered supply contracts
with volumes bought outside of Italy and supplied at entry points into the
Italian network. The Antitrust Authority considers that these contracts infringe
the rationale of article 19 of Legislative Decree No. 164/2000 which defines
the limits for volumes to be input by a single operator into the national network.
The Antitrust Authority imposed on Eni a symbolic fine amounting to euro
1,000 and requested Eni to submit &#147;a report indicating measures to be taken to eliminate
infringing behaviours with specific attention to the upgrading of the transmission
network or equivalent actions&#148;. On February 19, 2004, Eni filed this report
in which the company stated its commitment to increasing the level of competition
in the national gas market, particularly through the upgrading of natural
gas import pipelines from Austria and Tunisia on the condition that construction
of new LNG terminals in Italy would not be commenced by third parties in
the same time frame. With a decision of March 18, 2004, notified on March 26,
2004 , the Authority for Electricity and Gas started an infraction procedure
against Eni having considered that the measures planned by Eni are not adequate
to remove the infringing behaviour. According to Eni the construction of new
LNG terminals would be a sufficient upgrading of the Italian natural gas infrastructure
system in order to meet the expected growth in Italian natural gas demand over
the long term (beyond 2007) while at the same time ensuring a sound level of
market opening. In order to comply with the requests included in the Antitrust Authority's
decision of November 21, 2002, Eni submitted  to the Authority on June 18, 2004, a proposal
entailing the sale to third parties of 2.3 billion cubic meters oer year of natural gas starting
in 2004 through 2008 (for a total of 9.2 billion cubic meters of natural gas in this four-year period)
before such natural gas enters the national transmission network, in accordance with a pro-rata
mechanism. In its decision on June 24,2004, the Authority judged this proposal as adequate, if
implemented, to the end the effects of the violation of competition rules hoghlighted in the November
21, 2002 decision. In its June 24, 2004 decision the Authority also extended to October 7, 2004 the deadline
for closing the infraction procedure in order to allow Eni to implement its proposal.
In the event of a negative outcome of this infraction procedure, should
Eni be obliged to upgrade the import infrastructure from
Austria and Tunisia in addition to the planned LNG terminal construction by
third parties, this could led to a situation of oversupply of natural gas on
the domestic market, which in turn would cause further pressure on Eni's natural
gas margins. This situation is expected to occur presumably in 2008-2010 when
this additional transport capacity should come on stream. On February 5, 2003
Eni filed a claim with the Regional Administrative Court of Lazio in Rome requesting
the annulment of the ruling taken by the Antitrust Authority. </font></p>
<p align="justify"><br>
<font face="Times New Roman, Times, serif"><i><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">The Italian Government, Parliament and regulatory authorities may take
further steps to improve competition in the Italian natural gas market and
such regulatory developments may adversely affect Eni' s results of operations </font></i></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni cannot
predict the final outcome of this matter and future developments in the more
general institutional debate ongoing on the liberalization of the natural gas
market in Italy as confirmed by the joint official inquiry regarding the Italian
gas market started in March 2003 by the Authority for electricity and gas and
the Antitrust Authority with the aim of acquiring elements and information
useful to define actions to improve competition. On June 19, 2004, the findings
of this inquiry were made publicly available. According to both Authorities,
the overall level of competition of the Italian natural gas market is unsatisfactory
due to the dominant position held by Eni in many phases of the natural gas
chain. Specifically,  the  Authorities  state  that  the  vertical  integration  of Eni in the  supply  and
transport of gas has restricted the  development of competition in Italy  notwithstanding  the antitrust
ceilings  introduced  with Law 164/2000.  It is further  stated that the overall price of natural gas in
Italy  (in  particular  for  the  industrial  sector)  is  higher  than  in  other  European  countries.
Accordingly,  both  authorities  identified  possible  measures which in their opinion could enhance the
level  of  competition  in the  natural  gas  market,  among  which  the  most  important  are:  (i) the
construction  of new  infrastructure  for the import of natural gas; (ii) the creation of an independent
transmission  system  operator  (TSO) that owns and operates both the national  high pressure  transport
grid and the  storage  of gas;  and (iii) a  framework for the assignment to third parties of
 natural  gas  volumes  or  natural  gas  contracts
relating to Eni&#146;s  take-or-pay  long term  natural  gas supply  contracts.
Management  believes the  institutional  debate on the degree of competition in the Italian  natural gas
market to be an area of attention and cannot exclude  negative  impacts on Eni&#146;s financial  condition or
results of operations in future years  deriving from the  developments  of this matter.  In  particular,
the  implementation of any of the above measures designed to improve  competition in the Italian natural
gas market in the future may have a material  adverse effect on Eni&#146;s financial  condition or results of
operations.


</font> </p>
<br>

<p align=justify><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
<p align="justify"><i><b><font size="2" face="Times New Roman, Times, serif">Environmental
Regulation </font></b></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">Together
with other companies in the industries in which it operates, Eni is subject
to numerous EU, national, regional and local environmental laws and regulations
concerning its oil and gas operations, products and other activities, including
legislation that implements international conventions or protocols. In particular,
these laws and regulations require the acquisition of a permit before drilling
for hydrocarbons may commence, restrict the types, quantities and concentration
of various substances that can be released into the environment in connection
with exploration, drilling and production activities, limit or prohibit
drilling activities on certain protected areas, and impose criminal or civil
liabilities for pollution resulting from oil, natural gas, refining and
petrochemical operations. These laws and regulations may also restrict emissions
and discharges to surface and subsurface water resulting from the operation
of natural gas processing plants, petrochemicals plants, refineries, pipeline
systems and other facilities that Eni owns. In addition, Eni's operations
are subject to laws and regulations relating to the generation, handling,
transportation, storage, disposal and treatment of waste materials. Environmental
laws and regulations have a substantial impact on Eni's operations. Some
risk of environmental costs and liabilities is inherent in particular operations
and products of Eni, as it is with other companies engaged in similar businesses,
and there can be no assurance that material costs and liabilities will not
be incurred. Although management, considering the actions already taken,
the insurance policies to cover environmental risks and the provision for
risks accrued, does not currently expect any material adverse effect upon
Eni's consolidated financial statements as a result of its compliance with
such laws and regulations, there can be no assurance that there will not
be a material adverse impact on Eni's consolidated financial statements
due to: (i) the possibility of as yet unknown contamination; (ii) the results
of the on-going surveys and the other possible effects of statements required
by Decree No. 471/1999 of the Ministry of Environment; (iii) the possible
effect of future environmental legislation and rules, including Decree No.
367 of the Ministry of Environment, published on January 8, 2004, fixing
new quality standards for aquatic environment and dangerous substances.
This decree modifies completely the actual set of rules, because of the
imposition of qualitative standards that can be reached only through considerable
investments; (iv) the effect of possible technological changes relating
to future remediation; (v) the possibility of litigation and the difficulty
of determining Eni's liability, if any, as against other potentially responsible
parties with respect to such litigation and the possible insurance recoveries.</font></p>

<p align="justify"><br>
<i><b><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Risks deriving from changes in oil prices and in natural gas, refined and
petrochemical products prices and margins  </font></b></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating results in certain
of Eni's businesses, particularly the Exploration &amp; Production,
Refining &amp; Marketing, Gas &amp; Power and Petrochemical segments are affected
by changes in the price of oil and by their impact on prices and margins
of natural gas and refined and petrochemical products. Overall, lower oil
prices have a net adverse impact on Eni's results of operations. The effect
of lower oil prices on Eni's average realizations of oil is generally immediate.
However Eni's average realizations for oil differs from the price of marker
crude Brent due primarily to the circumstance that Eni's production slate, including
also heavy crudes, has a lower API gravity compared with Brent crude (when
processed the latter allows for higher yields of valuable products compared
to heavy crudes, hence higher market price). </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A time lag exists between movements in oil prices and movements in the prices
and margins of natural gas and refined and petrochemical products. In particular,
trends of natural gas margins in Eni primary distribution business tend to mitigate
the impact of changes in oil prices on Eni's operating results due to different
movements in prices of certain energy parameters to which natural gas purchase
and sale prices are contractually indexed in different proportions and as measured
over different reference periods. In secondary distribution of natural gas,
despite the fact that all customers are eligible since January 1, 2003, the
Authority for Electricity and Gas still establishes reference sale prices for
non eligibile customers in order to allow for a gradual and regular transition
to a free market, in accordance with the provisions of a Decree of the President
of the Council of Ministers of October 31, 2002. In this segment, sale prices
can be affected by Government regulations aimed at fighting inflation that limit
the ability to transfer natural gas purchase costs onto the final sale price. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The results of operations
of Eni's Refining &amp; Marketing
segment are substantially affected by changes in European refining margins
which reflect changes in relative prices of crude oil and refined products.
Generally, a time lag exists between changes in oil prices and movements
in refined products prices. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni's petrochemical products margins are affected by trends in demand and
changes in oil prices which influence changes in cost of petroleum-based feedstock.
Generally, an increase in oil price determines a decrease in petrochemical products
margins on the short term. Prolonged weakness of the European economy as well
as Eni's own structural weaknesses have prevented Eni's Petrochemical segment
from returning to profitability in recent years due to the inability to transfer
increases of oil-based feedstocks onto to selling prices. Due to industry conditions
and weak economic growth in Europe, management does not expect any significant
improvement in petrochemicals segment profitability over the foreseeable future.</font> </p>

<p align="justify"><i><b><br>
    <font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exchange Rates </font></b></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Movements in the exchange rate of the euro against the U.S. dollar can have
a material impact on Eni's results of operations. Prices of oil, natural gas
and refined products generally are denominated in, or linked to, U.S. dollars,
while a significant portion of Eni's expenses is denominated in euro. Similarly,
prices of Eni's petrochemical products generally are denominated in, or linked
to, euro, whereas expenses in the Petrochemicals segment are denominated both
in euro and U.S. dollars. Accordingly a depreciation of the U.S. dollar versus
the euro generally has an adverse impact on Eni results of operations. </font></p>
<p align="justify"><i><b><font size="2" face="Times New Roman, Times, serif"><br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Weather in Italy and Seasonality </font></b></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Significant changes in
weather conditions in Italy from year to year may cause variations in demand
for natural gas and some refined products; in colder years, demand is higher.
Accordingly, the results of operations of the Gas &amp; Power
segment and, to a lesser extent, the Refining &amp; Marketing segment, may be
affected by such variations in weather conditions. In addition, Eni's results
of operations reflect the seasonality in demand for natural gas and certain
refined products used in residential space heating, the demand for which
is typically highest in the first quarter of the year, which includes the
coldest months, and lowest in the third quarter, which includes the warmest
months.</font> </p>
<p align="justify"><i><br>
        <b><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">Interest Rates </font></b></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">Interest on Eni's financial debt is primarily indexed at a
spread to benchmark rates such as the Europe Interbank Offered Rate, &#147;EURIBOR&#148; and the London Interbank
Offered Rate, &#147;LIBOR&#148;. As a consequence, movements in interest rates can have
a material impact on Eni's financial expense in respect of its financial
debt. </font></p>
<p align="justify"><i><font size="2"><b><br>
</b></font><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2"><b>Uncertainties in Estimates of Oil and Natural Gas Reserves </b></font></i></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">Numerous uncertainties are inherent in estimating
quantities of proved reserves and in projecting future rates of production
and timing of development expenditures. The accuracy of proved reserve
estimates depends on a number of factors, assumptions and variables,
among which the most important are the following:</font><br>
    <font size="2" face="Times New Roman, Times, serif">- the quality of available geological, technical and economic data and their
interpretation and judgement;<br>
- - whether the prevailing tax rules, other government
regulations and contractual conditions, will remain the same as on the date
estimates are made; <br>
- - results of drilling, testing and production after the
date of the estimates may require substantial upward or downward revisions;
<br>
- - changes in oil and natural gas prices could have an effect on the quantities
of Eni's proved reserves because the estimates of reserves are based on prices
and costs at the date when such estimates are made . In particular the reserves
estimates are subject to revision as prices fluctuate due to the cost recovery
feature under certain Production Sharing Agreements (PSA); and <br>
- - the production
performance of Eni reservoirs.</font> </p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Many of these factors, assumptions and variables involved in estimating reserves
are beyond Eni control and may prove to be incorrect over time. Accordingly,
the estimated reserves could be materially different from the quantities of oil
and natural gas that ultimately will be recovered. Additionally, any downward
revision in Eni&#146;s estimated quantities of reserves could have adverse consequences on Eni&#146;s financial
results, such as increased depreciation, depletion and amortization charges and/or
impairment charges, which would reduce earnings and shareholders' equity.</font></p>
<p><b><i><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font size="2">Critical accounting estimates </font></i></b></p>
<div align="justify"><font size="2" face="Times New Roman, Times, serif">The
preparation of financial statements entails accounting estimates that are characterized
by a high degree of uncertainty, complexity and judgement. Notwithstanding
these critical accounting estimates are thoroughly applied and underlying amounts
are fairly determined, management cannot rule out that in future years such
estimates might be wrong due to, among other things, the following factors:
uncertainty, lack or limited availability of information; the availability
of new informative elements, variations in economic conditions such as prices,
significant factors (e.g. removal technologies and costs) and the final outcome
of legal, environmental or regulatory proceedings. See &#147;Item 5 - Critical accounting estimates&#148;.</font>
</div>
<p align="justify">&nbsp;</p>


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<a name="a14"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 4.
              INFORMATION ON THE COMPANY</B> </FONT></P>
<a name="a15"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>History and
Development of the Company</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
SpA with its consolidated subsidiaries is engaged in the oil and gas, electricity
generation, petrochemicals,  oilfield services and engineering industries. Eni has
operations in about 70 countries and 76,521 employees as of December 31, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni,
the former Ente Nazionale Idrocarburi,  a public law agency, established by Law 136 of
February 10, 1953, was transformed into a joint stock company by Law Decree 333 published
in the Official Gazette of the Republic of Italy no. 162 of July 11, 1992  (converted
 into law on August 8, 1992,  by Law 359,  published in the Official  Gazette of the
Republic of Italy no. 190 of August 13, 1992).  The  shareholders&#146;meeting of August 7,
1992 resolved that the company be called Eni SpA. Eni is registered at the Companies
Register of Rome, register tax identification number 00484960588,  VAT number
00905811006,  R.E.A. Rome no. 756453. Eni is expected to remain in existence until
December 31, 2100; its duration can however be extended by resolution of the shareholders. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
registered head office is located at Piazzale Enrico Mattei 1, Rome, Italy (telephone
number: +39-0659821). Eni branches are located in: </FONT></P>

<!-- MARKER FORMAT-SHEET="LI Times Just" FSL="Workstation" -->
<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>San Donato
Milanese (Milan), Via Emilia, 1; </FONT></P></UL>

<!-- MARKER FORMAT-SHEET="LI Times Just" FSL="Workstation" -->
<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>San Donato
Milanese (Milan), Piazza Ezio Vanoni, 1; and </FONT></P></UL>

<!-- MARKER FORMAT-SHEET="LI Times Just" FSL="Workstation" -->
<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gela (Sicily),
Strada Statale 117 bis, Entrada Ponte Olivo, 93012 Gela. </FONT></P></UL>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internet
address: </FONT> <FONT FACE="Times New Roman, Times, Serif" SIZE="2" COLOR="#0000FF"><U>www.eni.it</U> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
agent in the United States is Viscusi Enzo, 666 Fifth Ave., New York, NY 10103. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
principal segments of operations and subsidiaries are described below. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agip
SpA was merged into Eni SpA effective as of January 1, 1997 to become Eni&#146;s  Exploration &amp; Production
 division.  Eni conducts its  exploration  and  production  activities  through its
 Exploration &amp; Production  division and certain  operating  subsidiaries.  Eni&#146;s
 exploration,  development  and production  activities  commenced in 1926, when Agip was
formed by the Government with a mandate to explore for and develop oil and natural gas.
 Exploration  and  production  operations  are conducted in Italy,  Croatia,  North
Africa,  West Africa,  the North Sea, the Gulf of Mexico,  the Middle and Far East, the
Caspian Sea, Australia and Latin  America.  In 2003,  Eni produced  1,536 KBOE/d of
 hydrocarbons  and, at December 31, 2003,  it had estimated  proved  reserves of 7,272
mmBOE with a life index of 12.7 years.  In 2003,  Eni&#146;s Exploration &amp; Production segment
had net sales from operations (including intersegment sales) of euro 12,746 million and
operating income of euro 5,746 million. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Snam
SpA was merged into Eni SpA  effective as of February 1, 2002 to become Eni&#146;s Gas &amp; Power
 division.  Eni now conducts its natural gas and  electricity  generation  activities
 through its Gas &amp; Power division and certain operating subsidiaries.  Eni natural gas
supply,  transmission and distribution activities commenced in the 1940s with the
commercial sale of natural gas to industrial users in Northern Italy. In 2003,  Eni&#146;s
primary  distribution  sales of natural gas to third parties  totalled  50.93 billion
cubic meters in Italy and 14.15 billion cubic meters in Europe;  natural gas volumes
 consumed by Eni and Eni&#146;s subsidiaries &#150; mainly in electricity  generation,  refining
and petrochemicals  operations - totalled 1.90 billion cubic meters.  Primary
distribution sales include sales to wholesalers,  mainly local distribution companies,
 and large industrial and  thermoelectric  users which are supplied by a high and medium
pressure gas pipeline  network.  Eni&#146;s high and medium pressure gas pipeline network for
primary  distribution is about 30,000 kilometres long in Italy,  while outside Italy Eni
holds transmission  rights on approximately  3,800 kilometers of high pressure
 pipelines.  Eni&#146;s natural gas transport network in Italy is owned and managed by Snam
Rete Gas SpA. Snam Rete Gas is listed on the Italian Stock Exchange,  Eni&#146;s share being
50.07%.  Snam Rete Gas transports  natural gas on behalf of Eni and third parties  (&#147;shippers&#148;);
 in 2003 its transported  volumes were 76.37 billion cubic meters, of which 24.63 billion
were on behalf of third parties.  Eni operates in retail  distribution  (&#147;secondary
 distribution&#148;) of natural gas which includes almost exclusively sales made by local
 distribution  companies to commercial and residential users through low pressure
pipeline  networks.  Eni operates in secondary  distribution in Italy through  Italgas&#151;the
 largest local distribution  company in Italy&#151;wholly owned by Eni following the tender
offer successfully  closed in January 2003. Eni operates in secondary  distribution
 activities outside Italy in Hungary through Tigaz, in Argentina through Distribuidora de
Gas Cuyana and in Slovenia through Adriaplin. In 2003, Eni&#146;s secondary distribution sales
were 8.40 billion cubic meters in Italy and 4.44 billion cubic meters outside Italy. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
conducts its electricity generation activities through its wholly-owned subsidiary
Enipower SpA, which owns and manages Eni&#146;s power stations of Livorno,  Taranto, Mantova,
Ravenna, Brindisi and Ferrera Erbognone with a total installed capacity of approximately
 1,930 megawatts as of December 31, 2003. In 2003, annual production of electricity sold
totalled 5.55  terawatthour.  Eni owns other minor power stations located in Eni&#146;s
 petrochemical  plants and refineries whose production is mainly for internal
 consumption.  The accounts of these power stations are reported within Eni&#146;s Refining &amp; Marketing
and  Petrochemicals segments. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, Eni&#146;s Gas &amp; Power segment had net sales from operations (including intersegment
sales) of euro 16,068 million and operating income of euro 3,627 million. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AgipPetroli
SpA was merged into Eni SpA effective  January 1, 2003 to become Eni&#146;s Refining &amp; Marketing
 division.  Eni now conducts its refining and marketing  activities  through the Refining
&amp; Marketing division and certain operating  subsidiaries.  Activities commenced in the
1930s, when Eni initiated the development of the industrial and retail markets for
refined products in Italy. Eni&#146;s refining and marketing activities are located primarily
in Italy,  Europe and Latin America.  Eni has a 36.6% market share in the retail market
of refined products in Italy; its brands are Agip and IP. In 2003, sales of refined
products totaled 49.91 million tons, of which 30.58 million were in Italy. The balanced
refining capacity of Eni&#146;s  wholly-owned  refineries  amounted to 504 KBBL/d at December
31, 2003. In 2003, Eni&#146;s Refining &amp; Marketing division had net sales from operations
(including intersegment sales) of euro 22,148 million and operating income of euro 583
million. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
petrochemical activities commenced in the 1950s, when it began production of basic
petrochemicals at its Ravenna industrial complex. Through Polimeri Europa SpA and its
subsidiaries,  Eni operates in olefins and aromatics, basic intermediate products,
 chlorine derivatives,  polyethylene,  polystyrenes and elastomers.  Eni&#146;s petrochemical
operations are concentrated in Italy and in Western Europe. In 2003, Eni sold 5.3 million
tons of petrochemical products. In 2003, Eni&#146;s Petrochemicals segment had net sales from
operations (including intersegment sales) of euro 4,487 million and an operating loss of
euro 176 million. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
oilfield services,  construction and engineering activities commenced in the late 1950s.
Through Saipem SpA (a 43% owned subsidiary) and its subsidiaries,  Eni operates in
offshore  construction,  in particular fixed platform  installation,  subsea pipe laying
and floating  production systems.  Eni owns and operates a fleet of world class marine
service vessels,  able to drill wells 10,000 meters deep in water depths in excess of
3,000 meters and to lay pipelines up to 60 inches in diameter in water depths up to 3,000
meters.  Through  Snamprogetti  SpA (a wholly owned  subsidiary) and its subsidiaries Eni
is a provider of engineering and project  management  services to the oil and gas,
 refining  petrochemical  industries.  In 2003,  Eni&#146;s Oilfield  Services,  Construction
 and Engineering  segment had net sales from operations (including intersegment sales) of
euro 6,306 million and operating income of euro 311 million. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
list of subsidiaries of Eni is included as an exhibit to this Form 20-F. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Strategy</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
plans to pursue strong  hydrocarbon  production growth by developing on internal lines
and continuing its program of rationalisation of its asset portfolio aimed at increasing
its value by focusing on strategic areas with sound growth potential and leaving marginal
ones. Management plans to dedicate major efforts to reserve replacement in order to
support long-term growth. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
its natural gas and power generation  business,  Eni plans to increase  natural gas sales
on European markets and to maintain natural gas volumes sold in Italy at present levels
 leveraging on expected natural gas demand growth, the development of integrated
gas-electricity supply and the completion in time of the plan of expansion of power
generation capacity in its industrial sites. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
its refining and marketing of petroleum  products  business,  Eni plans to complete the
upgrading of its  distribution  network in Italy and to develop its presence in selected
areas in Europe where it can leverage on operating  synergies and a well  established
 brand.  In refining Eni plans to pursue high levels of efficiency and  flexibility  and
to develop high quality fuels  anticipating  the  environmental requirements of European
regulations. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
its oilfield services,  construction and engineering business,  Eni plans to concentrate
its presence in the strategic segment of large projects for the development of offshore
hydrocarbon reserves and construction of industrial plants and infrastructure based on
the application of technologies for hydrocarbon production treatment and transport and
for natural gas and heavy crudes upgrading. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
plans to reduce capital  employed in non core businesses and to pursue the integration of
its core businesses in order to support  international  growth by means of integrated
 projects and to improve its competitive positioning.  Eni plans to improve operational
efficiency and effectiveness. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
plans to increase resources dedicated to research and development  activity and to focus
resources on selected projects which in management&#146;s view can earn Eni competitive
 advantages in the medium to long-term, in particular in the areas of exploration and
recovery of hydrocarbons and of upgrading of heavy crudes and natural gas. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
plans to make capital  expenditure  amounting  to euro 25.5 billion in the next
 four-year  period to sustain its growth  strategy.  Approximately  90% of this  capital
 expenditure  is planned in the Exploration &amp; Production,  Gas &amp; Power and Refining &amp; Marketing
segments.  Management believes that in the next four-year period cash flow from
operations is sufficient to cover financial  requirements  related to planned capital
expenditure and the payment of dividends, assuming an average Brent price of 16
dollars/barrel in the 2004-2007 period in real terms (base year 2000) and a dollar/euro
exchange rate at parity. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Key developments</I></B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
most significant events that occurred during 2003 and to date in 2004 were the following: </FONT></P>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2003,
 hydrocarbon  production reached 1.54 mmBOE/d, a 6% increase over year 2002. Eni&#146;s proved
reserves of hydrocarbons at December 31, 2003 reached 7,272 mmBOE,  increasing by 242
mmBOE over                  2002.  The increase in proved  reserves  allowed Eni to
replace 142% of  production;  this average was 118% without  taking into account the
effect of purchases and sales of property.  The average                  reserve life
index is 12.7 years (13.2 in 2002); </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In March 2003
Eni purchased the entire  capital of the Norwegian oil company Fortum  Petroleum AS,
which in 2002 produced 39 KBOE/d and held proved  reserves of 159 mmBOE as of December
31, 2002.                  Total  consideration plus financial debt acquired amounted to
U.S. dollar 975 million.  This transaction is part of Eni&#146;s strategy of upstream growth
by strengthening its presence in key areas and                  increasing interests in
already held assets in order to generate operational synergies; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In Libya,
 development is underway of the natural gas, oil and  condensates  fields of Wafa in the
NC-169 A onshore permit and of Bahr Essalam in the NC-41  offshore  permit.  Eni&#146;s
interest in the                 project is 50%.  Management  expects  production to start
in late 2004 at Wafa and in 2005 at Bahr Essalam.  Natural gas produced from both fields
is planned to be  transmitted  to Italy through an                 underwater  pipeline
linking Mellitah on the Libyan coast to Gela in Sicily.  The laying of the pipeline
started in the second half of 2003.  Management  expects transport of natural gas volumes
to                 start in late 2004,  in line with the start of production  at Wafa.
 Natural gas volumes are  projected to reach 8 billion  cubic meters per year (4 billion
 being Eni&#146;s  share).  Such volumes have                 already been booked by operators
in the natural gas sector under long-term supply  contracts.  Eni&#146;s share of the planned
capital  expenditure for the whole project amounts to euro 3.7 billion;  of
                which 3.1 billion for the upstream phase; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In Angola,  in
offshore Block 15 (Eni&#146;s interest 20%) development of the oil fields  discovered in the
Kizomba area is ongoing.  This project is going to be carried out in phases.  The first
one,                   under completion,  concerns the development of the Hungo and
Chocalho fields;  management expects  production to start in the second half of 2004. The
second phase,  concerning the development of                   the Kissanje and Dikanza
fields, is expected to start up production in 2006. Eni&#146;s share of planned capital
expenditure for the two phases amounts to approximately U.S. dollar 1.3 billion; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In Angola, in
Block 14 (Eni&#146;s interest 20%) engineering and construction works are underway for the
development of the Benguela /Belize/Lobito/Tomboco fields (BBLT) expected to start-up in
2006; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In February 2004,
 under the North Caspian Sea PSA (Eni is operator  with a 16.67%  interest),  the
 development  plan of the Kashagan oil field located in the Kazakh  section of the
Caspian Sea was                  approved by the relevant Kazakh  Authorities.  The
approved  development  plan consists of multiple phases;  management  expects  production
to start in 2008. Total planned capital  expenditure is                  estimated at
U.S. dollar 29 billion,  Eni&#146;s share being in the range of U.S. dollar 5 billion; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In March 2004,
in Saudi Arabia,  an exploration  licence for the  extraction of natural gas in the so
called C area covering  about 52,000 square  kilometres in the Rub al Khali basin at the
border                 with Qatar and the United Arab Emirates was awarded to a
consortium formed by Eni with an international oil company and Saudi Aramco (Eni operator
with a 50% interest); </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Within its
strategy of international  expansion in natural gas, in July 2003 Eni purchased a 50%
stake of Uni&#243;n Fenosa Gas, engaged in the energy field in Spain; the relevant
consideration amounted                 to euro 442 million. In February 2003, Eni started
supplies of natural gas produced in Russia and transported via the Blue Stream pipeline
to the Turkish company Botas,  marking the entry of Eni in                 this market.
Natural gas volumes sold totalled approximately 1.3 billion cubic meters (0.633 billion
being Eni&#146;s share); </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In April 2004
Eni signed an agreement with the Portuguese  Government for the  reorganization  of Galp
Energia (Eni&#146;s  interest  33.34%) within the  restructuring  process of the Portuguese
 energy                 sector.  Under the agreement Eni  concentrates  its activities in
the natural gas sector through a 49% interest in Gas de Portugal  (indirectly  owned
through Galp Energia) and exits the segment of                 refining and marketing of
refined  products in Portugal.  Gas de Portugal  will be managed  jointly with
 Electricidade  de Portugal,  the other  shareholder  with a 51%  interest;  the natural
gas                 transmission network owned by Gas de Portugal will be sold to a
state-owned  Portuguese company.  The finalization of the agreement is subject to
authorization from relevant antitrust  authorities.                 When finalized, this
transaction will provide Eni cash proceeds of euro 667 million; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Within its
strategy of commercial  policy  integration  and  development of its natural gas segment
also at an  international  level,  on November 25, 2002 Eni launched a public tender
offer on all                 Italgas SpA ordinary shares outstanding not owned directly
or indirectly by Eni,  corresponding to approximately 56% of Italgas&#146; share capital. Eni
offered a price of euro 13 per share, to be fully                 paid in cash. The
tender offer  successfully  closed on January 27, 2003 and Italgas shares were  withdrawn
from listing on the Italian Stock Exchange  effective on February 7, 2003.  Following the
                squeeze-out of the remaining  minority  shareholders,  Eni now owns 100%
of the share capital of Italgas.  Total  consideration  paid pursuant to the tender offer
amounted to approximately euro 2.5                 billion. </FONT></P></UL>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2003, Eni invested
approximately euro 13.1 billion in new capital expenditure and investments. Capital
expenditure amounted to 8.8 billion, of which 93% related to the Exploration &amp; Production,
Gas &amp; Power and Refining &amp; Marketing segments, and concerned in particular: (i) the
development of hydrocarbon fields (euro 5,016 million) in Libya, Iran, Angola, Nigeria,
Italy, Egypt and Kazakhstan; (ii) exploration (euro 635 million); (iii) upgrade and
maintenance of Eni&#146;s natural gas transport and distribution networks in Italy (euro 726
million); (iv) the construction of power stations (euro 542 million); (v) the
construction of the Greenstream gasline (euro 460 million) that will carry natural gas
from Libyan fields to Sicily; (vi) refinery upgrade, upgrade of the fuel distribution
network in Italy and outside Italy and the purchase of service stations in Europe (for a
total of euro 730 million). Investments (including net borrowings acquired) amounted to
euro 4.3 billion and concerned primarily the Italgas tender offer (euro 2,569 million),
the purchase of 100% of Fortum Petroleum (euro 909 million), the purchase of 50% of Uni&#243;n
Fenosa Gas (euro 442 million), as well as the purchase of majority stakes in natural gas
distribution companies in Hungary (euro 68 million). In 2003 new capital expenditure and
investments increased by approximately euro 3.7 billion with respect to year 2002, or
39%, due mainly to a euro 2.9 billion increase in investments and to a euro 0.6 billion
increase in capital expenditure for the development of hydrocarbon reserves. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2002,  Eni invested about euro 9.4 billion in new capital  expenditure  and  investments.
 Capital  expenditure  (euro 8 billion)  referred  principally  to the  development of
hydrocarbon  reserves and exploration  expenditure,  the development and upgrade of Eni&#146;s
natural gas transport and distribution  networks,  the expansion of power generation
capacity, the maintenance of refineries as well as the upgrading of Eni&#146;s network of
service stations in Italy and Europe.  Investments  (euro 1.4 billion  including net
borrowings  acquired)  referred in particular to the acquisition of 100% of Bouygues
 Offshore.  In 2002 new capital  expenditure and  investments  decreased by
 approximately  euro 1.9 billion with respect to year 2001, or 17%, due mainly to a euro
3.3 billion  decrease in investments,  partly offset by a euro 1 billion increase in
capital expenditure for the development of hydrocarbon reserves and a euro 0.2 billion
increase in the capital expenditure for the purchase of proved and unproved property. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2001 Eni invested about euro 11.3 billion in new capital  expenditure and  investments.
 Capital  expenditures  (euro 6.6 billion)  referred  principally to the development of
hydrocarbons  reserves and exploration  expenditure,  the development and upgrade of Eni&#146;s
natural gas transport and distribution networks, the maintenance of refineries and
petrochemicals plants as well as the upgrading of Eni&#146;s network of service stations in
Italy and Europe.  Investments  (euro 4.7 billion,  including net borrowings)  referred
in particular to the completion of the acquisition of Lasmo for a total of euro 4.128
million  (including net  borrowings for about euro 970 million) and the purchase of 50%
of Polimeri  Europa &#151; the remaining 50% already owned by Eni &#151; (euro 204 million).  Main
 divestment  occurred in 2001  concerned:  (i) 40.24% of share capital of Snam Rete Gas,
a company  indirectly  wholly-owned by Eni, through means of an initial public offering
and a private  placement to foreign  professional and institutional  investors.  The
offering price was set at euro 2.8 per share.  Total  proceeds from the offering
 amounted to euro 2.2 billion in cash;  (ii) 100% of share capital of  Immobiliare
 Metanopoli,  as well as Eni&#146;s other real estate for total proceeds of euro 754 million
in cash;  (iii) the  polyurethane  business to Dow Chemical for proceeds of euro 428
million,  of which euro 128 million was cash, euro 204 million  corresponding  to a 50%
interest in Polimeri Europa (of which Eni already owns 50%) and euro 96 million of
royalty rights for the use of Dow proprietary technology. </FONT></P>

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<a name="a16"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>BUSINESS OVERVIEW</B></FONT></P>

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<a name="a17"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exploration &amp; Production</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in the exploration and production of hydrocarbons in Italy,  Croatia,  North
Africa,  West Africa,  the North Sea, the Gulf of Mexico, the Middle and Far East, the
Caspian Sea, Australia and Latin America. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is pursuing a growth strategy aimed at achieving a daily production  target of
approximately  1.9 mmBOE by 2007,  which  corresponds to an annual average growth rate of
5% over the next four years.  Management plans to increase production by developing in
areas where Eni has a consolidated presence and through the start-up of important
projects in Libya, Angola, Nigeria, Iran and Kazakhstan.  Eni intends to continue the
rationalization  of its asset portfolio,  started after the purchase of British-Borneo
Plc and Lasmo Plc, in order to increase its value by focusing on strategic areas with the
highest growth potential and exiting marginal areas with limited growth prospects.
 Management plans to concentrate  exploration expenditure in areas with high mineral
potential,  capable of providing the highest returns.  Management plans to improve
business performance by searching for operating solutions aimed at reducing operating
costs and increasing synergies. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oil
and Natural Gas Reserves</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Proved oil and gas
reserves are the estimated  quantities  of crude oil  (including  condensate  and natural
gas liquids) and natural gas which on the basis of geological  and  engineering  data
will be able to be recovered with reasonable certainty in future years from known
reservoirs under technical,  contractual,  economic and operating conditions existing at
the time. Prices include consideration of changes in existing prices provided only by
contractual arrangements, but not escalations based upon future conditions. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Eni has always held
direct control over the booking of proved reserves. The Reserve Department of the
Exploration &amp; Production Division, reporting directly to the General Manager, is
entrusted with the task of keeping reserve classification criteria (&#147;criteria&#148;)
constantly updated and of monitoring their periodic quantification process. The
criteria follow the United States regulations issued through the Financial Accounting
Standard Board and the Securities and Exchange Commission (&#147;SEC&#148;) as well as, on specific
issues not regulated by norms, the consolidated practice recognized by qualified
reference institutions. The current criteria applied by Eni have been examined by
DeGolyer and MacNaughton (D&amp;M), an independent petroleum engineering company, which
confirmed that such criteria are compliant with the SEC principles. D&amp;M also stated that
the criteria regulate situations for which the SEC rules are less precise, providing
a reasonable interpretation in line with the SEC standards and the generally
accepted practices in international markets. Eni quantifies its reserves on the basis
of the mentioned criteria also when it participates in exploration and production
activities operated by other entities. </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From 1991 Eni has requested qualified independent
petroleum engineering companies<SUP>1 </SUP>to carry out an independent evaluation of its proved
reserves on a rotative basis. In particular, in 2003 a total of 2.4 billion BOE of
proved reserves, or about 33% of Eni&#146;s total reserves at December 31, 2003, have been
evaluated. The results of this independent evaluation confirmed Eni&#146;s evaluations, as
prior evaluations did in past years. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni&#146;s proved  reserves
of  hydrocarbons  at December 31, 2003 reached 7,272 mmBOE (oil and  condensates  4,138
mmBBL;  natural gas 18,008 BCF),  increasing by 242 mmBOE over 2002, due to: (i) new
 discoveries  and extensions (355 mmBOE) in particular in Kazakhstan,  Libya, Angola,
Algeria,  Venezuela and Italy; (ii) upward revisions of previous estimates (287 mmBOE) in
particular in Kazakhstan,  Nigeria, Algeria, Norway and Angola,  offset in part by
downward  revisions in Italy; (iii)  acquisitions (162 mmBOE) in particular of the
Norwegian company Fortum Petroleum;  (iv) improved recovery (31 mmBOE) in particular in
Congo,  Algeria and Egypt.  Increases in proved  reserves were offset in part by
production for the year (570 mmBOE) and the sale of interests in fields in the British
 section of the North Sea (23 mmBOE).  The increase in proved reserves allowed to replace
142% of production; this average was 118% without taking into account the effect of
purchase and sale of property. The average reserve life index was 12.7 years (13.2 in
2002).  </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Estimated proved  developed  reserves at December 31, 2003,  amounted to 4,230
mmBOE (2,447 mmBBL of oil and condensates and 10,224 BCF of natural gas)  representing
58% of total estimated proved reserves (53% and 54% at December 31, 2002 and 2001,
respectively). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Estimated  proved
reserves of hydrocarbons  applicable to long-term  supply  agreements with foreign
 governments or authorities in which Eni acts as producer  represent  approximately 8% of
total estimated proved reserves as of December 31, 2003. </FONT></P>



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<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_____________________ </FONT></DIV>

<!-- MARKER FORMAT-SHEET="Div Times Just" FSL="Workstation" -->
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><SUP>1 </SUP>From 1991 to 2002
DeGolyer and MacNaughton, from 2003 also Ryder Scott. </FONT> </DIV>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The table below sets
forth a geographical breakdown of Eni&#146;s estimated proved reserves of hydrocarbons, on a
barrel of oil equivalent basis, for the periods indicated. </FONT></P>





<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD></tD>
     <TD COLSPAN="5"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999 (1)&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(mmBOE)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,477&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,389&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,315&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,199&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">996&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">North Africa </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,849&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,929&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,122&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,033&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,024&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">West Africa </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,067&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,093&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,136&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,287&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,324&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">North Sea </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">646&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">700&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">879&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">825&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">912&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Rest of World </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">495&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">897&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,477&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,686&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,016&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Total </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,534&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,008&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,929&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,030&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,272&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Div Times Just" FSL="Workstation" -->
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_____________________ </FONT></DIV>

<!-- MARKER FORMAT-SHEET="Rodape Times" FSL="Workstation" -->
<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Eni
is a party to certain Production Sharing Agreements (PSAs) whereby a portion of Eni&#146;s
share of oil and gas production is withheld and sold by its joint-venture  partners which
are state-owned entities,         with proceeds being remitted to the state in
satisfaction of Eni&#146;s PSA-related tax liabilities.  Revenue and income taxes include such
taxes owed by Eni but paid by state-owned  entities out of Eni&#146;s share         of oil and
gas production.  Starting in 1999, in order to be consistent with international
practices, Eni began classifying the tax oil withheld directly by its joint-venture
partners which are State-owned         entities as an increase of revenues and income
taxes (in prior years such taxes were settled against revenues with respect to such
Agreements).</FONT></P></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
additional  information  regarding Eni&#146;s  estimated  proved reserves and proved
 developed  reserves of crude oil and natural gas, see Note 29 to Eni&#146;s  consolidated
 financial  statements  &#147;Additional financial statement disclosures required by U.S. GAAP
and the SEC - Supplemental oil and gas information for the exploration and production
activities - Oil and natural gas reserves (unaudited)&#148;. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mineral
right portfolio and exploration activity</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2003,  Eni&#146;s portfolio of mineral rights  consisted of 1,053 exclusive or
shared rights for  exploration  and development in 36 countries on five  continents,  for
a total net acreage of 242,635 square  kilometers  (281,682 at December 31, 2002). Of
these,  43,879 square kilometers  concerned  production and development  (41,580 at
December 31, 2002).  Outside Italy net acreage decreased by 35,296 square kilometers due
to releases, in particular in Egypt, China, Australia and Algeria and by 3,751 square
kilometers in Italy. Increases were registered in Norway due to the purchase of Fortum
Petroleum. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
total of 105 new exploratory wells were drilled (43 of which  represented Eni&#146;s share),
as compared to 120 exploratory wells completed in 2002 (52 of which represented Eni&#146;s
share).  Overall success rate was 46.7% (38.6% in 2002); the success rate of Eni&#146;s share of exploratory
wells was 45.7% (39.1% in 2002).</FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Parag 8 Italic" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Capital
expenditure</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Item 5 &#150; Liquidity and capital resources &#150; Capital expenditure by segment&#148;. </FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Parag 8 Italic" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Production</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8 Italic" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
matters regarding future production,  additions to reserves and related production costs
and estimated  reserves discussed below and elsewhere herein are  forward-looking
 statements that involve risks and  uncertainties  that could cause the actual results to
differ materially from those in such  forward-looking  statements.  Such risks and
 uncertainties  relating to future production and additions to reserves include political
 developments  affecting the award of exploration or production  interests or world
supply and prices for oil and natural gas, or changes in the underlying economics of
certain of Eni&#146;s important hydrocarbons projects. Such risks and uncertainties relating
to future production costs include delays or unexpected costs incurred in Eni&#146;s
production operations.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 hydrocarbon production totalled 1,536 mmBOE/d (oil and condensates 981 KBBL/d;
natural gas 3,174 mmCF/d), increasing by 87 KBOE/d over 2002, up 6%, due to: (i) the
purchase of Fortum Petroleum; (ii) start-ups of fields mainly in Australia, Algeria,
Pakistan, Iran, Nigeria, the United States and Angola; (iii) production growth
recorded in Nigeria, Kazakhstan and Venezuela; (iv) the cancellation of production cuts
imposed by OPEC. These increases were offset in part by: (i) the decline of mature
fields; (ii) lower entitlements in Production Sharing Agreements due to higher
international oil prices<SUP>2</SUP>; and (iii) the effect of the sale of mineral assets in 2002. </FONT> </P>





<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>______________________ </FONT></DIV>

<!-- MARKER FORMAT-SHEET="Div Times Just" FSL="Workstation" -->
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><SUP>2 </SUP>In PSAs
production, calculated at reference prices, allows both the recovery of costs
incurred &#147;Cost Oil&#147; and a remuneration &#147;Profit Oil&#147; assigned in part to the producing
country and in part to the oil company. An increase in international oil prices entails
lower entitlements of hydrocarbons produced to the mentioned components; the opposite
occurs in case of a decline in prices. </FONT> </DIV>







<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production
of oil and condensates  (981 KBBL/d)  increased by 60 KBBL/d,  up 6.5%, due to increases
 registered  outside Italy in particular in: (i) Norway,  due to the purchase of Fortum
 Petroleum;  (ii) Nigeria,  in particular for the start-up of the Abo field (Eni operator
with a 50.19% interest);  (iii) Australia for the start-up of the Woollybutt field (Eni
operator with a 65% interest);  (iv) Algeria,  due to the start-up of the Ourhoud  (Eni&#146;s
 interest  4.59%) and ROM Est (Eni  operator  with a 50%  interest)  fields;  (v) Iran
for the start-up of the Balal (Eni&#146;s  interest  45%) and Darquain (Eni operator with a
60% interest) fields;  (vi) Venezuela at the Daci&#243;n field (Eni operator with a 100%
interest);  and (vii) Kazakhstan,  at the Karachaganak field  (co-operated by Eni with a
32.5% interest),  and in Italy at the Val d&#146;Agri fields.  These increases were partly
offset by declines  registered in Angola due to the  maintenance  standstill of the Kuito
field (Eni&#146;s interest 20%), by declines of mature fields in Congo and Egypt and by the
effect of the sale of assets in 2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
gas production  available for sale (3,174 mmCF/d) increased by 159 mmCF/d, up 5.3%, due
mainly to increases  registered outside Italy, in particular in: (i) Pakistan due to the
start-up of the Bhit (Eni operator with a 40% interest) and Sawan (Eni&#146;s interest 23.7%)
fields as well as the reaching of full production at the Miano (Eni&#146;s interest 15.16%)
and Zamzama (Eni&#146;s interest  17.75%) fields;  (ii) Norway, due to the purchase of Fortum
 Petroleum;  (iii)  Trinidad &amp; Tobago for the reaching of full  production  of fields in
Block NMCA-1  (Eni&#146;s  interest  17.31%);  (iv) Nigeria for the increase in natural gas
volumes treated at the Bonny plant (Eni&#146;s interest 10.4%). These increases were offset in
part by the decline of mature fields, in particular in Italy and the United States. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Hydrocarbon
 production  sold amounted to 556.2 mmBOE.  The 4.3 mmBOE  difference  over  production
 was due  essentially  to a temporary  increase in technical  stocks  related to sale
processes and lower withdrawals  with respect to entitlements outside Italy. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
tables below set forth Eni&#146;s production<sup> (1)</sup> of oil and condensates and natural gas for
the periods indicated. </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD></tD>
     <TD COLSPAN="5"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Production of oil and condensates</I></B> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(KBBL/d)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Crude Oil and Condensates (2) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">88&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">North Africa </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">221&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">227&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">228&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">252&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">250&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">West Africa </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">202&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">213&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">219&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">222&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">236&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">North Sea </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">116&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">124&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">204&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">213&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">235&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Rest of the World </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">108&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">137&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">148&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">176&nbsp; </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Total </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">674&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">748&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">857&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">921&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">981&nbsp; </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
</TABLE>

<BR>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD></tD>
     <TD COLSPAN="5"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Natural gas production available for sale</I></B> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(mmCF/d)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Natural Gas (2) (3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,511&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,438&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,313&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,260&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,181&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">North Africa </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">278&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">454&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">497&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">560&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">559&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">West Africa </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">87&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">128&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">North Sea </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">222&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">258&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">450&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">516&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">596&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Rest of the World </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">177&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">276&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">485&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">592&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">710&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Total </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,209&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,493&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,827&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,015&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,174&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Div Times Just" FSL="Workstation" -->
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>

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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Production
 information set forth above differs from production as reported in the reserve tables in
Note 29 to the  Consolidated  Financial  Statements &#151; Supplemental  oil and gas
information  (unaudited)         because yearly production  presented in such reserve
tables is based on estimates taken in November of each year and the information above
sets forth actual production during the year.  Furthermore,  Eni&#146;s         production of
natural gas reported in such reserve tables  includes,  in addition to sold  production,
 production  volumes of natural gas consumed in operations.  Natural gas produced and
reinjected  into         storage fields in Italy remains part of Eni&#146;s reserves for each
period.</FONT></P></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Rodape Times" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For
1999 data see note 1 on page 23.</FONT></P></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Rodape Times" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(3)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Natural
gas production volumes consumed in operations are excluded. The effect was of 94, 132 and 151  mmCF/d in 2001,
2002 and 2003, respectively.</FONT></P></TD>
</TR>
</TABLE>




<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth certain information and operating data regarding Eni&#146;s principal
oil and natural gas interests at and for the year ended December 31, 2003. </FONT></P>




<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Commencement<BR>of operations</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number <BR>of<BR>interests</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net exploration (1)<BR>and development<BR>acreage</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net<BR>development<BR>acreage</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Type of<BR>fields</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number <BR>of<BR>producing<BR>fields</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number<BR>of other<BR>fields</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=17% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Italy</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1926 </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">261&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40,210&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,118&nbsp; </FONT></TD>
     <TD WIDTH=17% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>North Africa</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Algeria </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1981 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,226&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">760&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Egypt </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1954 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,849&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,969&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Libya </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1959 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,268&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,053&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Tunisia </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1961 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,784&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,888&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>85&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>41,127&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12,670&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>65&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>52&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>West Africa</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Angola </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1980 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,223&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">432&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Congo </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1968 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,507&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">741&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gabon </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1981 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,344&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Nigeria </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1962 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,770&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,878&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">115&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">130&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>114&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>37,844&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,094&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>164&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>177&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>North Sea</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Norway </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1965 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,239&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">316&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1964 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,379&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,076&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>106&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,665&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,439&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>54&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>32&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Rest of World</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Australia </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19,275&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,643&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">China </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1983 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">241&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">85&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Croatia </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1996 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,018&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">878&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ecuador </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1988 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,000&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,000&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Indonesia </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,360&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">984&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Iran </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1957 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">423&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">423&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Kazakhstan </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1995 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,030&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Pakistan </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,089&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">598&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trinidad &amp; Tobago </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1970 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United States </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1968 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">408&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,502&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">489&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Venezuela </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1998 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">713&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">131&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Onshore/Offshore&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>459&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>49,717&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,403&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>49&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>36&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,156&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,156&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other countries with only </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65,916 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">exploration activity </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">792&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">202,425&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28,762&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,053&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>242,635&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>43,880&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>426&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>382&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<BR>

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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Square
kilometers.</FONT></P></TD>
</TR>
</TABLE>


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<P STYLE='page-break-before:always'>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
principal regions of operations are described below. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Italy</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2003,  Eni&#146;s
 hydrocarbon  production in Italy totaled 300 KBOE/d and represented 19% of Eni&#146;s total
 production.  Eni&#146;s  exploration and development  interests in Italy are  concentrated in
the Po Valley,  the Adriatic Sea, the Central Southern  Apennines,  Sicily and the
Sicilian  offshore.  Natural gas production totaled 1,181 mmcf/day and represented
 approximately 72% of Eni&#146;s hydrocarbon  production in Italy. Eni&#146;s principal  natural
gas fields are located in the Adriatic Sea (Barbara,  Porto  Garibaldi/Agostino,
 Angela/Angelina,  Cervia/Arianna  and Porto Corsini Mare Ovest which  collectively
 accounted for 43.5% of Eni&#146;s natural gas production in Italy in 2003) and in the Ionian
Sea (Luna,  which accounted for 8.2%).  In early 2005 the Tea, Arnica and Lavanda gas
wells,  located 60 kilometers off the Adriatic coast are expected to start production at
the final level of 25.78 mmcf/day (about 29 mmcf/day) net to Eni. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Production of oil in
Italy totaled 84 KBBL/d.  Eni&#146;s three major fields, Val d&#146;Agri in Southern Italy,
 Villafortuna in the Po Valley and Aquila in the southern Adriatic offshore,  represented
73.6% of Eni&#146;s total oil production in Italy in 2003. Other oil fields are Rospo in the
Adriatic Sea, Vega offshore southern Sicily, Gela and Ragusa in Sicily. In Val d&#146;Agri
development activities continued. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration
 activities  yielded positive results with the natural gas wells: (i) Annamaria 2,
completed in January in Concession  A.C14.AG (Eni&#146;s interest 90%) in the Adriatic
 offshore;  (ii) Elettra 2, drilled in April in permit BR250 AG (Eni&#146;s  interest  100%)
in the  Adriatic  offshore;  (iii) Panda W-1 drilled in the offshore of Sicily off the
coast of Agrigento  where the Panda 1 gas well had been drilled in 2002 (Eni operator
with a 37.5% interest); (iv) Capparuccia 1, drilled in August on the Ponzano di Fermo
permit (Eni&#146;s interest 100%) onshore in Central Italy. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
development of the Tea, Arnica and Lavanda gas wells, located 60 kilometers off the
Adriatic coast started. First production is expected in early 2005. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
development of the Miglianico oil field is underway; production is expected to start in
early 2006. Within the  development  project for the Val d&#146;Agri fields,  the fourth
 treatment  train and the drilling of further 11 producing  wells,  to be added to the
existing 27 (15 in production)  are underway.  In 2003 production net to Eni amounted to
55 KBOE/d of which 2,500 derive from the long production test of Cerro Falcone and Monte
Enoc. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
the portfolio  rationalization  process,  in May 2004 Eni sold its 100% interest in
Stargas SpA to Gas Plus for approximately  euro 140 million.  Stargas is a
 newly-established  company,  to which certain Italian properties were transferred that
included:  (i) 42 natural gas and condensate production concessions and 3 exploration
permits,  located mainly in central-southern  Italy; (ii) gas transmission and treatment
infrastructure; and (iii) real estate and certain investments. In 2003 Stargas production
amounted to about 5 KBOE/d, consisting mainly of natural gas. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
regards to the Alto Adriatico Project, in 2003 proved natural gas reserves of certain
fields offshore the Adriatic Sea were written off in connection with article no. 26 Law
179/2002,  which prohibits exploration and production of hydrocarbons in this section of
the Adriatic Sea.  Despite the fact that  concessions  have not been withdrawn,  Eni was
aware that the draft law on energy that is under discussion at the  Parliament no longer
 requires the  institution  of a specific  commission on this issue as had been
 previously  requested by the  Parliamentary  Commission to collect  further  information
 on the mentioned prohibition of exploration and production. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 11, 2004,  certain Eni natural gas fields located offshore the Adriatic  coastline
between the regions of Veneto and Emilia Romagna were placed under preliminary  seizure
following a decision of the Court of Rovigo as part of an investigation  concerning a
subsidence  phenomenon  allegedly caused by the activity of exploration and production of
hydrocarbons.  Currently these fields produce  approximately 16.8 mmCF/d.  On June 10,
2004 the seizure was lifted on all but one minor field.  Certain other Eni natural gas fields
in the same area are still under  seizure  following a Court  decision of February 5,
2003 relating to the same issue.  Before the seizure,  the latter fields produced
 approximately  13.4 mmCF/d. The overall economic impact of this matter is not material.
 See &#147;Item 18 &#150; Financial  Statements &#150; Note 23 &#150; Legal Proceedings&#148;. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>North
Africa</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
operations in North Africa are conducted in Algeria, Egypt, Libya and Tunisia. In 2003,
North Africa accounted for 22% of Eni&#146;s total worldwide production of hydrocarbons. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;<I>&nbsp;&nbsp;&nbsp;&nbsp;Algeria</I>.
Eni has been present in Algeria since 1981. Eni&#146;s principal oil producing fields are
located in the Bir Rebaa area (Eni&#146;s interest 49%) in the south-eastern desert. In
2003 oil production started at: (i) the ROM Est field (Eni operator with a 50% interest)
west of Bir Rebaa with production amounting to 1.5 KBBL/d net to Eni; (ii) the second
and third treatment train of the three planned at the unitized Ourhoud field (Eni&#146;s
interest 4.59%) south-west of Bir Rebaa. In 2003 this field produced 7 KBBL/d net to
Eni. The Rod and satellites field (Eni operator with a 63.96% interest) is under
development near Bir Rebaa with production expected in the third quarter of 2004. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three
new oil discoveries were made in Block 404 (Eni&#146;s interest 25%) in the south-eastern
desert near the border with Tunisia,  with the HBNE-1 (drilled 5 kilometers from the
Hassi Berkine field),  SFSW-1 and Bkne-Aac-A wells. These exploration wells, drilled at
depths of 3,250 to 3,400 meters yielded between 3 and 4 KBBL/d in test production. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the Zamoul el Kbar permit (Eni operator with a 100% interest) the REC 2-H appraisal well
showed the presence of hydrocarbons  at a depth of about 3,000 meters and yielded over 8
KBBL/d.  In October 2003 the saleability of this field&#146;s production was declared. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the second half of 2003 the ROME field (Eni operator with a 50% interest) started
production at the initial level of about 3 KBBL/d. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorization
 is pending for the  expansion of the treatment  center of the ROM field that will allow
to increase  capacity  from 7 to over 23 KBBL/d and also for the  installation  of a gas
treatment and compression unit and a gasline for the transfer of gas to the Bir Rebaa
center. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Ourhoud project (Eni&#146;s interest  4.59%) was completed and provides for the development of
the oil field in Blocks 404, 405 and 406 over 300 kilometers  south-east of Hassi
Messaoud.  In 2003 this field produced 174 KBBL/ds/day (7 KBBL/d net to Eni). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Egypt</I>.
Eni has been present in Egypt since 1954. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
main oil producing interests held by Eni are the  Belayim and Ashrafi fields in the Gulf
of Suez and the Melehia field located in the Western Desert. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, natural gas production amounted to 95 KBOE/d net to Eni. The main natural gas
producing interests operated by Eni are concentrated in the Nile Delta,  onshore the Abu
Madi and el Qar&#146;a fields, and in the  Mediterranean  offshore,  the el Temsah,  North
Port Said (the former Port Fouad),  Darfeel and Baltim fields.  In early 2004 the Nouras
field in the North Port Said  concession was started up with initial production of 40.6
mmcf/day net to Eni. Development activities are ongoing for the North Port Said, Baltim
and el Temsah fields. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Egypt exploration activity takes place in 10 exploration permits in 35 production
 concessions.  The major exploration areas in geomineral terms are: (i) gas and
condensates in the North Sinai, the Nile Delta and the Mediterranean offshore; and (ii)
oil in the Suez Gulf and the Western Desert. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
was assigned two exploration  permits as operator:  Ras el Ush and South Ferain located
in the Gulf of Suez (Eni&#146;s  interests 75 and 70%,  respectively).  Exploration  plans
provide for the drilling of three wells in both permits. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a consequence of the Bid Round 2002,  Blocks 24 and 26 Offshore  Mediterranean  were
assigned to Eni, while Block 10 Western Desert was assigned to Eni following the Bid
Round 2003. The latter bid needs to be approved by the Egyptian Parliament, which will
confirm the conferral of licences to Eni. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 over 150 workover actions were performed on the wells of the Belayim Marine and
Belayim Land fields (Eni&#146;s interest 50%) located in the Sinai Peninsula. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
this area four new  exploration  wells (BM-75,  Belayim Land Bay North-1,  Sinai South-1
and Sinai NW-1) were drilled.  The first three wells found  hydrocarbons  and were linked
to existing  production facilities. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development
activities are ongoing in the natural gas fields located in the following concessions:
 (i) North Port Said (former Port Fouad, Eni&#146;s interest 50%) located offshore about 40
kilometers north of Port Said at a water depth of 20 to 90 meters.  The project provides
for the development of the Nouras field and the extension of the el Gamil terminal.
 Through this work daily  production  increased by 14.4 mmcf net to Eni; (ii) Baltim (Eni&#146;s
interest 25%) located  offshore north of the Nile Delta about 10 to 45 kilometers off the
coast.  The project includes the installation of a platform on Baltim North, the drilling
of 4 development  wells, the completion of a fifth already drilled well and the laying of
a gasline.  These  facilities are expected to start  production in 2005 in order to
maintain the contract  production level of 211.89 mmcf/day (37 KBOE/d);  (iii) Temsah
(Eni operator with a 25% interest)  located between the Nile Delta and Port Said about 60
kilometers off the coast.  The project includes the installation of a production platform
with 8 wells, 4 of these already  drilled,  which will be linked to the existing Temsah
North West platform.  These  facilities are expected to start production at the end of
2004 in order to maintain the contract production level of approximately 480 mmcf/day. </FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Libya</I>.
Eni started operations in Libya in 1959. Eni&#146;s principal producing interests are
located in two areas: onshore in the central-eastern desert in the Bu-Attifel field,
where Eni is operator with a 50% interest, and offshore Tripoli in the Bouri field, where
Eni is operator with a 30% interest. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
joint development of the natural gas, oil and condensate field of Wafa, located in permit
NC-169A about  520-kilometers  south west of Tripoli,  and Bahr Essalam,  located in the
NC-41 offshore permit, 110-kilometer north of Tripoli is underway. Eni&#146;s interest in the
project is 50%. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
the onshore development (Wafa) 25 wells were drilled (17 gas and 8 oil wells) of the 30
designed,  while the workover of the 8 existing wells (5 gas and 3 oil wells) was
completed;  the construction of facilities and the laying of pipelines  linking the wells
with the Mellitah  treatment  plant on the Libyan coast are underway.  Within the
offshore  development  (Bahr Essalam),  the Sabratha  platform and its infrastructure,
 as well as the Mellitah plant, are under  construction.  In August the laying of the
520-kilometer long pipeline for exporting the production from the two wells to Italy
commenced (see Gas &amp; Power - Development  initiatives,  below). The Wafa field is
expected to start production in the fourth quarter of 2004 at an initial level of 54
KBOE/d net to Eni. The Bahr Essalam field is expected to start production in June 2005 at
an initial level of 61 KBOE/d net to Eni. Full production from the two fields (128 net to
Eni) is expected in 2006. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Early
production was started in January 2004 at the Elephant oil field in the NC-174 onshore
permit (Eni&#146;s interest 33.33%).  In the first half of 2004 initial production is expected
to amount to 40 KBBL/d (9 KBBL/d to Eni). Full production will be provided by 29 wells.
Peak production is expected to be reached in early 2007 with 150 KBBL/d (32 KBBL/d net to
Eni). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Tunisia</I>.
Eni has been present in Tunisia since 1961; its main producing interests are in the
el Borma oil field and in the oil and gas Hammouda and Oued Zar fields, operated by Eni
with a 50% interest. In 2003 the Adam field (Eni operator with a 35% interest) started
production. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Morocco</I>.
Following the acquisition of Lasmo, Eni has been present in Morocco since 2001 and holds
a 40% interest in the Ras Tafelney atlantic offshore block, in partnership with a US
independent company holding the remaining 60% interest. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>West
Africa</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
operations in West Africa are conducted mainly in Angola, Congo and Nigeria. In 2003,
West Africa accounted for 17% of Eni&#146;s total worldwide production of hydrocarbons. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Angola</I>.
Eni has been present in Angola since 1980. Eni&#146;s main oil producing interests are
located in Block 0, former Cabinda (Eni&#146;s interest 9.8%), Block 14 (Eni&#146;s interest
20%) and Block 15 (Eni&#146;s interest 20%). The main oil fields in Block 0 are the Takula,
Nemba and Malongo fields. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
offshore Block 14 (Eni&#146;s interest 20%) the Negage-2  appraisal well was drilled 10
kilometers from the Negage-1  discovery well and identified an oil and gas bearing
column.  In Block 15 (Eni&#146;s interest 20%) four new oil discoveries were made: (i)
Bavuca-1, which yielded 2 KBBL/d in test production;  (ii) Kakocha-1,  which yielded over
4 KBBL/d in test production;  (iii) Tchihumba-1 which yielded over 5 KBBL/d in test
production;  and (iv) Clochas-1, which yielded about 2 KBBL/d in test production.  Three
successful appraisal wells were drilled on preceding discoveries:  Saxi-2, Batuque-2 and
Mondo 3/A (each yielded over 5 KBBL/d). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the deep waters of Block 14 the Kuito oil field is producing,  while engineering and
construction works are underway for the development of the of Benguela/Belize  and
Lobito/Tomboco  fields expected to start-up in 2006; peak production is targeted at 40
KBBL/d net to Eni in 2007. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development
activities of the A and B phases continued in the Kizomba area situated in Block 15 aimed
at starting production at the Hungo and Chocalho fields.  Production is expected to start
in the second half of 2004. Peak  production of 39 KBBL/d net to Eni is expected in 2006.
In phase B,  concerning the  development  and start-up of production of the Kissanje and
Dikanza fields,  four EPC contracts were awarded for the completion of the project.
 Production  start-up is scheduled for 2006. In November 2003 in Block 15 the Xikomba oil
field was started-up at an initial  production  level of 15 KBBL/d net to Eni during the
production period. Recently in Block 15 the development of Mondo field has also been
approved with start-up expected in 2007. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Block 0 (former  Cabinda B, Eni&#146;s interest 9.8%)  development  continued of the North
Sanha and Bomboco fields  containing  oil,  condensates  and LPG. Gas cycling on North
Sanha will be provided by the associated  gas produced in areas B and C of Block 0, thus
reducing gas flaring by 50%.  Production is expected to start between the autumn of 2004
and the beginning of 2005,  with a peak  production of 100 KBBL/d (10,000 net to Eni) in
2007. </FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Congo</I>.
Eni has been present in Congo since 1968. Eni&#146;s principal oil producing interests
operated in Congo are located in the deep offshore facing Pointe Noire: the Kitina (Eni&#146;s
interest 35.75%), Foukanda, Mwafi, Zatchi and Djambala (Eni&#146;s interest 65% each) and
Loango (Eni&#146;s interest 50%) fields. Other fields are the Pointe Noire Grand Fond (Eni&#146;s
interest 35%). In Congo Eni owns significant interests in two deep water exploration
blocks, Mer Tr&#232;s Profonde Nord, where Eni is operator with a 100% interest, and Mer Tr&#232;s
Profonde Sud (Eni&#146;s interest 30%). </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Gabon</I>.
In March 2003, Eni signed a sale and purchase agreement to divest its assets in Gabon for
approximately US dollar 29 million. Divested assets include an interest in the offshore
oil field Limande, which produced approximately 2 KBBL/d net to Eni in 2003, and certain
exploration permits. This deal is subject to approval from relevant Authorities. </FONT> </P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Nigeria</I>.
Eni has been present in Nigeria since 1962. Eni&#146;s principal producing
interests are in four onshore blocks (OML 60, 61, 62 and 63) in the Niger Delta (Eni&#146;s
interest 20%Operator), in 43 onshore NASE non-operated blocks in the Niger Delta (Eni&#146;s
interest 5%), in the deep offshore OML 125 block (Eni&#146;s interest 50.19% Operator), and
in OML 116 block (former OPL 472 Agbara) and OML 119 block (former OPL 91), where it
holds a 100% interest operated through service contracts. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three
 discoveries were made in onshore  production  areas: (i) in the OML 63 permit (Eni
operator with a 20% interest) with the Sengana River 1 Dir well; (ii) in the OML 11
permit (Eni&#146;s interest 5%) with the Bonny North 2 well; and (iii) in the OML 41 permit
(Eni&#146;s interest 5%) with the Ovhor 1 Dir DNFW well. The three discovery wells have been
prepared for the connection with existing production facilities. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
April 2003 oil production started at the Abo Central level of the Abo field (Eni operator
with a 50.19% interest),  located in the OML 125 production concession in the Nigerian
offshore at a water depth ranging  between  500 and 800  meters.  First oil was  produced
19 months  after the  approval  of the  project.  In the fourth  quarter of 2003
 production  reached 25 KBBL/d (12 KBBL net to Eni) while in a later development phase it
is targeted at 45 KBBL/d (19,000 net to Eni). Abo is the first oil field that starts
production in Nigerian deep waters. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
the development of the Okono and Okpoho oil fields in the offshore OML 119 permit (Eni
operator with a 100% interest),  in January 2004 the FPSO Mystras was installed on the
Okono field.  The vessel has a treatment  capacity of 80 KBBL/d and a storage  capacity
of 1 mmBBL and replaced the FPSO Jamestown (with a 22 KBBL/d  treatment  capacity).  Five
of the six planned  development  wells were completed at the Okpoho field, whose
production is expected to start in the first half of 2004. Peak production from the two
fields  is expected in 2004 at 28 KBBL/d net to Eni. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Bonga oil field located in block OML 118, where Eni holds a 12.5% interest, is under
development. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the NASE joint venture (Eni&#146;s interest 5%), the largest oil joint venture in the country
relating to 43 onshore blocks,  the major development  projects underway are Cawthorne
Channel and Forcados/Yokri with expected start-up between the first half of 2004 and 2005. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August a total of 30 development wells in the EA field (Eni&#146;s interest 12.86%) in the
north-western area of the Niger Delta offshore started production,  with a total yield in
2003 of 74 boe and a peak of 135 KBBL/d (7,000 net to Eni). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development
 initiatives are ongoing for guaranteeing  natural gas supplies to Nigeria LNG Co Bonny&#146;s
 liquefaction plant (Eni&#146;s interest 10.4%). Gas reserves net to Eni committed to the
liquefaction plant (five trains) amount to 1,331 BCF. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
October 2003 a joint venture was established  between three international oil companies
(Eni&#146;s interest 17%) and the Nigerian national company NNPC for the construction of a new
natural gas liquefaction plant near the Brass  terminal on the Niger Delta.  The
 agreement  provides  for the  beginning of the basic  engineering  phase for the
 construction  of two  treatment  trains with a capacity of about 5 million tonnes/year
of LNG each  (equivalent to 247.2 BCF of natural gas) before the end of 2004. Gas will be
provided by fields operated by Eni and another  international  oil company.  The final
decision will be made at the end of 2004 after the completion of preliminary studies. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Okpai power station (Eni&#146;s interest 20%) is expected to start-up in the second half of
2004, with a generation  capacity of 480 megawatt on two  turbogenerators.  The power
station will be fed with gas from the Kwale fields in Block OML 60. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Nigeria deep water Eni is operator in three  exploration  blocks,  OPL 244 (Eni&#146;s
 interest  90%), OPL 211 and OML 125 (Eni&#146;s  interest in both is 50.19%).  In addition
Eni holds a 12.5% interest in two other  deep water blocks, OML 118 and OPL 219. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mauritania</I>.
Eni holds a 35% interest in the area covered by A and B PSAs (Blocks 3, 4 and
5) in the deep offshore of Mauritania at a water depth from 200 to 2,600 meters. In the
first quarter of 2004 Eni divested its interests in Mauritania for approximately U.S.
dollar 83 million, following the sale and purchase agreement signed in December 2003,
effective 13 January 2004. </FONT> </P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>North
Sea</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
operations in the North Sea area are conducted in Norway and the United Kingdom. In 2003,
the North Sea accounted for 22% of Eni&#146;s total worldwide production of hydrocarbons. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Norway</I>.
Eni has been operating in Norway since 1964. Eni&#146;s principal producing interests
are the Ekofisk field (12.39% interest) in the North Sea and the Aasgard (14.9%),
Norne (6.9%) and Heidrun (5.12%) fields in the Norwegian Sea. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
March 2003 Eni purchased Fortum Petroleum AS, a subsidiary of the Finnish company Fortum
Oy. The acquisition  entailed a total investment of dollar 975 million  (including dollar
719 million for its net borrowings  assumed).  The assets of Fortum Petroleum (now Eni
Norge AS) are located in the Norwegian section of the North Sea, in particular they
consist of interests in the Aasgard (7%, in this field Eni already holds a 7.9%
interest),  Brage (12.26%) and Heidrun (5.12%) producing fields and also in Mikkel (7%,
in this field Eni already holds a 7.9% interest)  presently under development and Goliath
(15%,  operated by Eni with a 65% interest after the purchase of a further 25% interest
from a partner in the development  consortium)  still to be developed.  In addition,
 Fortum Petroleum holds interests in important gas transmission infrastructures  such as
Haltenpipe  (5%),  Heidrun Gas Export  (5.12%) and Aasgard  Transport  (5%) linking the
Aasgard and Heidrun  fields to the Norwegian  coast.  The company also holds an interest
in Franpipe (1.29%) and the related  Dunkerque  terminal (0.84%) in France and in
Europipe II (3.66%) for natural gas transmission to the German coast. At the end of 2002
Fortum Petroleum had proved reserves  amounting to 159 mmBOE (half of which consists of
natural gas). In 2003 its production  amounted to 44 KBOE/d and allowed Eni&#146;s
 hydrocarbon  production in Norway to increase by over 40%. This transaction is part of
Eni&#146;s strategy of upstream growth by strengthening its presence in key areas and
increasing interests in already held assets in order to generate operational synergies. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
its  portfolio  rationalization  strategy Eni sold its interest in the PL 239 permit (Eni
 operator  with a 40% interest) and purchased a 20% interest in the PL 264 permit and a
7.9% interest in the Tyrihans field in the Norwegian section of the North Sea, whose
development will start in 2004 with production start-up expected in 2007. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
March exploration licences were awarded in permits 34/12 and 35/10 (Eni&#146;s interest 60%)
and in permit 31/4 East of Brage (Eni&#146;s interest 12.26%). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
October the Mikkel field (Eni&#146;s interest 14.9%) started  production.  The development of
this field was obtained by drilling 4 production wells and installing 2 submarine
 templates.  In 2003 this field produced 2 KBOE/d net to Eni, its production peak, with 8
KBOE net to Eni, expected in 2004. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development
is underway at the Kristin gas and oil field (Eni&#146;s interest 9%) located in the
 Haltenbanken  area in the Norwegian Sea where the Norne and Aasgard field are already in
production.  Production from Kristin is expected in October 2005. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is operator  with  interests  ranging from 20% to 100% in 4 licences in the  Norwegian
 section of the North Sea and holds  interests  varying from 11% to 50% in 11 licences.
 In the Barents Sea Eni is operator of the PL 201 and PL 229 licences (with interests of
67 and 65%  respectively).  In the latter licence the Goliath field was discovered in
2001. In the Norwegian Sea Eni is operator of Block PL 256 (Eni&#146;s interest 55%) where in
2003 the Sklinna gas and condensate  discovery was made.  Other  discoveries were made in
the PL 264 permit (Eni&#146;s interest 20%) with the Hvitveis well, with reserves still to be
defined and in the PL 128 permit (Eni&#146;s interest 11.5%) with the Lerke well containing
oil. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
holds  interests in various  exploration  licences in the  conventional  offshore of
Norway and in  particular  is operator of 7 permits with  interests  ranging from 30% to
65%,  while in the other 32 exploration permits it holds interests ranging from 5% to
30%. In the PL0443 permit (Eni&#146;s interest 9.13%) in the North Sea the Tommeliten Alpha
oil and gas field was discovered. </FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United
Kingdom</I>. Eni has been present in the United Kingdom since 1964. The principal
producing interests operated by Eni in the United Kingdom are located in the B-Block
(average interest 70%) and in the T-Block (Eni&#146;s interest 88.74%) which contains the
Thelma, Tiffany and Tony fields. Other important fields are those located in the
Liverpool Bay (Eni&#146;s interest 53.9%) and J-Block (33%), Elgin/Franklin (21.87%), Flotta
Catchment (20%), MacCulloch (40%) and Andrew (16.21%). </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
May 2003 a new hydrocarbon  discovery was made in Block 29/5B (Eni&#146;s  interest  21.87%)
located in the Central Graben area in the British section of the North Sea, about 240
kilometers east of Aberdeen. The 29/5B-F7  exploration well, drilled in a water depth of
93 meters at a total depth of 6,074 meters,  yielded one million cubic meters/day of
natural gas in test production  (equivalent to about 6 KBOE/d) and 2 KBBL/d of
condensates. The well will be linked to the production facilities of the nearby Franklin
field located in the same block. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
part of its  portfolio  rationalization  strategy,  in 2003 Eni sold its interests in
certain gas fields,  among which the interests  held in the Cook,  Janice,  Columba and
Ross fields,  in the British section  of the North Sea and  defined  the sale of its
 interest  in the  Markham  and JC3 gas  fields  located  in the  southern  part of the
North Sea with a total  production  of about 13 KBOE/d net to Eni for approximately pound sterling
135 million </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
holds interests in various exploration licences in the deep offshore, in particular, Eni
is operator in 7 licences off the coast of Scotland with interests varying from 17 to
100%. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
holds various exploration  licences with interests ranging from 5 to 35%. In the Gas
Basin, in Block 48/10a (Eni&#146;s interest 11.11%) the gas and condensate  Annabella field
was discovered.  In the North Sea, in Block  211/12a&amp;7a  (Eni&#146;s interest 5%) the Ritchie
Channel oil field was discovered and was linked to the Magnus field. In the Central
Graben area. In Block 30/2C (Eni&#146;s  interest 7%) the Jade NE gas field was
discovered.  In the Viking Graben area in Block 16/28 (Eni operator with a 50% interest)
the Farragon field was discovered near the Andrew producing field (Eni&#146;s interest 16.2%). </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ireland</I>.
Eni holds 3 exploration permits in the Atlantic offshore of Ireland at water
depths ranging from 1,000 to 2,000 meters: permits 7/97 and 1/99 operated by Eni with a
100% interest and permit 2/94 (Eni&#146;s interest 40%) where the Dooish well was successfully
drilled at a water depth of 1,484 meters. Eni holds 3 exploration permits in the
Atlantic offshore of Ireland at water depths ranging from 1,000 to 2,000 meters:
permits 7/97 and 1/99 operated by Eni with a 100% interest and permit 2/94 (Eni&#146;s
interest 40%) where the 12/2-17(Dooish re-entry) well confirmed the Dooish discovery of
2002. </FONT> </P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rest
of the World</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, Eni&#146;s operations in the rest of the world accounted for 20% of its total worldwide
production of hydrocarbons. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In <I>Saudi Arabia </I>in
March 2004 Eni, as operator of a consortium with an international oil company and Saudi
Aramco, was awarded an exploration licence (Eni interest being 50%) for exploration,
development and production of natural gas in the C area covering approximately 52,000
square kilometers in the Rub al Khali basin at the border with Qatar and the United Arab
Emirates. The project provides for geophysical surveys and the drilling of 4
exploration wells. The gas discovered will be sold to the domestic market for power
generation, water desalinisation and as a feedstock to petrochemical plants.
Condensates and LPG extracted from the gas will be exported to international markets.
This project marks Eni&#146;s return to upstream activities in a country where it had operated
in the early 1970s. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
<I>Australia</I>, Eni acquired two exploration permits WA-326-P, operated by Eni with a
100% interest, and WA-328-P, operated by Eni with a 66.7% interest. Eni will perform
seismic surveys for 1,215 kilometers in the first permit and for 3,015 kilometers in
the second permit. Eni was also awarded the WA-25-L production licence (where Eni is
operator with a 65% interest) where the Woollybutt offshore oil field is located. In
April 2003 production at this field started. This field, located off the north western
coast of Australia at a water depth of about 100 meters, was developed via subsea wells
linked through flowlines to an FPSO vessel with a storage capacity of 600 KBBL.
Production in 2003 peaked at 42 KBBL/d. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Block WA-279-P,  located in the Bonaparte Gulf, about 100 kilometers off the northern
coast of Australia,  where the gas field Blacktip was discovered,  Eni purchased a 16.5%
interest, thus bringing its total interest to 46.15%. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the offshore A cooperation  zone between  Australia and East Timor (ZOCA),  500
kilometers  north-west of the northern coast of Australia,  the  construction,  laying
and  commissioning of platforms and facilities for the Bayu Undan gas and condensate
field (Eni&#146;s interest 12.04%) were completed. Production started in February 2004. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni holds interests in
11 exploration  licenses in the north-western  offshore,  and is operator in three of
these. Two of the latter are located north of Perth (WA-326-P,  Eni&#146;s interest 100% and
WA-328-P,  Eni&#146;s interest 67%), the third licence (WA-25-L) includes the Woollybutt field
(Eni&#146;s interest 65%). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
<I>Azerbaijan</I>, Eni holds a 5% interest in the project for the construction of the
Baku-Tblisi-Ceyhan pipeline. The project envisages the construction of a
1,740-kilometer long pipeline for the transportation of oil from the Caspian Sea area
to the Mediterranean by linking Baku to the Turkish port of Ceyhan through Georgia.
The pipeline transport capacity is projected to be one million BBL/d. Construction
work started in September 2002. Total financial requirement for the construction of this
infrastructure is estimated to be US dollar 3.6 billion, Eni&#146;s share being US dollar 180
million. According to management&#146;s plans, the pipeline is expected to start operating in
2005. In the Shakh Deniz Block (Eni&#146;s interest 5%), an area of approximately 860 square
kilometers, exploration contributed to the definition of the extension of the natural
gas and condensates field. The development project for this field was approved and is
underway after the conclusion of agreements with the national company of Georgia Socar
and the Turkish company Botas for the sale of natural gas produced. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Brazil</I>.
Eni holds interests in 4 exploration licenses (with shares from 20 to 100%)
in two of which the second exploration phase has already started. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Croatia</I>.
Eni through a 50/50 joint venture with Ina, the State-owned Croatian company,
operates the Ivana natural gas field, located in the Adriatic offshore. The field is
operated through a main production platform, called Ivana A, installed in 1999, and
three satellite platforms, Ivana B, D and E, installed between 2000 and 2001. The
development of other fields discovered in the area &#150; Ika, Ida, Annamaria and Marica &#150; is
underway. Start-up of these fields is expected in the second half of 2004. The
development of these fields will allow to increase production net to Eni by 7 KBOE/d by
2007. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Ecuador</I>.
The Villano oil field, operated by Eni with a 100% interest, is Eni&#146;s first
hydrocarbon producing field in Latin America. A revamping plan of field is underway
providing for the drilling of new producing wells. Production is expected to peak at
about 25 KBBL/d net to Eni in 2006. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Indonesia</I>.
Eni is present in Indonesia following the acquisition of Lasmo since 2001.
Its producing interests are located in the onshore area in east Kalimantan, regulated
by the Sanga Sanga PSA (Eni&#146;s interest is 38%) operated by Virginia Indonesia Company
(VICO) in which Eni holds a 50% interest. This area produces mainly natural gas (about
80% of area&#146;s total production). This gas is treated at the Bontang liquefaction plant,
the largest in the world, and is exported to the Japanese, South Korean and Taiwanese
markets. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
exploration  activities in Indonesia focus on the deep offshore of East Kalimantan.  Eni
holds interests in 7 exploration permits (Ganal,  Rapak,  Popodi,  Papalang,  Muara
Bakau, Ambalat and Bukat), in three of these as operator (Muara Bakau, Ambalat and Bukat)
located in the Kutei and Tarakan oil basins. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the Ganal permit about 70 kilometers from the east coast of the Kalimantan island, the
Gehem-2 discovery was made,  confirming the extension of the gas and condensates  bearing
strata already identified by the previous well Gehem-1 and identified a new oil bearing
area. Further discovery was made with the Ranggas S-1 well. Development
plans are being studied for the Ganal and Rapak discoveries. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
<I>Iran</I>, Eni has been present since 1957. Its main producing oil fields are Darquain (Eni is
operator with a 60% interest), Balal (45%) and Dorood (45%). In 2003 Eni&#146;s oil production
amounted to 9 KBBL/d. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
October 2003 the Darquain oil field (Eni operator with a 60% interest)  located  onshore
about 50 kilometers  north east of Abadan  started  production.  The second  development
 phase  provides for the drilling of 19 additional wells and the expansion of the oil
center capacity to 165 KBBL/d as well as the expansion of gas injection capacity. A
production peak at 22 KBBL/d net to Eni is expected in 2007. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Balal
was started up in January 2003. In August 2003 title to operations was transferred to the
national  company NIOC as provided for by the buy-back  agreement.  In 2003 production
was 29 KBBL/d (about 5 KBBL/d net to Eni), doubling initial production level. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 the development of the Dorood field continued. Production (about 4 KBBL/d in 2003)
is expected to peak at approximately 10 KBBL/d net to Eni in 2005. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2000 Eni entered a buy-back  contract with the National  Iranian Oil Company (NIOC) for
the development of Phases 4 and 5 of the South Pars gas and condensate  field,  an
eastern  extension of the North Field (Qatar),  the largest natural gas field in the
world in the offshore of the Persian Gulf. The project,  in which Eni is operator with a
60% interest,  involves the  construction of two offshore  platforms in waters of a depth
of around 70 meters, the drilling of 24 production wells and the construction of two gas
pipelines,  each approximately  105-kilometers long, to connect the platforms to the
onshore gas center to be built at  Assaluyeh.  The gas center will have a treatment
 capacity of 706.3  BCF/year and will be able to produce 1.68 BCF/day of natural  gas,
 one million  tonnes/year  of LPG and 80 KBBL/d of  condensates. Construction  work is
underway for completing the platforms and building the treatment  plant,  as well as
drilling of development  wells.  Production is expected to start in the second half of
2004 at the initial level of about  8 KBOE/d net to Eni </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Kazakhstan</I>.
Eni has been present in Kazakhstan since 1992. Eni is operator with British
Gas of the Karachaganak project (Eni&#146;s interest 32.5%) in a consortium composed of
four international oil companies. The development of the natural gas and condensate
field is organized by stages, in accordance with a Final Production Sharing Agreement.
In July, 2003 the second phase was completed, which concerned in particular: (i) the
completion of a condensate treatment plant (Karachaganak Processing Complex - KPC)
with a 150 KBBL/d capacity, and a compression station for the injection of part of the
sour gas produced (233.1 BCF/year) in the reservoir at pressures of about 500
atmospheres; (ii) the laying of a 635-kilometer long pipeline with a 24 inch diameter
linking the Karachaganak field to Atyrau, point of connection with the Caspian Pipeline
Consortium pipeline in which Eni holds a 2% participation and transportation rights up to 65 KBBL/d. The
start-up of the KPC required the optimization of process parameters for the stabilization
and removal of mercaptans from condensates as well as remedial works on auxiliary systems.
In the meantime the unit 3 of Karachaganak continued to produce and transport gas and condensates to the Orenburg (Russia) plant (about 280
KBOE/d). Remedial works were performed and the plant was started up. On June 10, 2004 the
first oil lifting was completed in the Novorossiysk Terminal through the CPC pipeline. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is operator of the North Caspian Sea PSA (Eni&#146;s interest 16.67%) in joint venture with
six other international oil companies.  In May 2003, the partners in the project,  except
for one, exercised their pre-emptive rights and signed a Sale and Purchase  Agreement in
order to purchase pro-rata the interest of British Gas that has the intention to exit the
project.  This agreement is subject to the signature of an amendment to the PSA by the Kazakh authorities.
Eni&#146;s share in the project will increase from 16.67% to 20.372% once the deal is completed. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
area under contract is made up of 11 blocks covering a total of over 5,500 square
 kilometers at a water depth of 2 to 10 meters.  Due to the exploration  potential of the
North Caspian area and to the operating and technological  challenges it poses (i.e.
shallow waters which are covered by ice for about six months a year), this project represents an
extremely important industrial feat in the oil industry.  Eni intends to apply the most
advanced  technologies and methods in order to provide maximum environmental  protection
to the North Caspian area. In this area, in July 2000 the Kashagan field was discovered,
 which management believes is the most important oil discovery in the world in the past
thirty years. On June 30, 2002 the Eni-led consortium and the Kazakh  authorities
 declared the commerciality of the Kashagan field. At the end of 2002 the consortium
 presented a development plan for the field. On February 25, 2004 the development plan
for Kashagan was approved,  concurrently  with a Supplemental  Agreement to the PSA.
The  development  plan consists of multiple  phases and envisages a
production  start up in 2008, at a level of 75 KBBL/d,  to be increased to a 450 KBBL/d
at the end of the first phase.  Target production is expected at 1.2 mmBBL/d.
Total planned capital  expenditure for the development of the field is estimated at US
dollar 29 billion,  Eni&#146;s share being in the range of US dollar 5 billion. This capital
expenditure does not include estimated  expenditure for the construction of
transportation  infrastructure to export the production volumes to
 international  markets.  Currently the consortium is studying several options,
 including the one which envisages the construction of the relevant  infrastructure to
link the planned Kashagan processing plant with the  Baku-Tiblisi-Cehyan  pipeline. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
March 2003, the testing phase of the third and the fourth appraisal wells (KE-4 and KE-5)
was completed.  In April, drilling of the fifth appraisal well (KE-6)
commenced. At the end of 2003, after the completion of the drilling phase, the first
production test was performed.  Two commitment  exploration wells (Kashagan South West-1
and Aktote-1),  spudded in April and May 2003, were successfully drilled.  The Kashagan
South West-1 well,  drilled at the total depth of 5,875 meters,  discovered  hydrocarbons
and yielded over 2 KBBL/d in test production.  The Aktote-1 well,  drilled at a total
depth of 4,267 meters,  found  hydrocarbons and yielded about 1.5 KBBL/d in test
production.  At the beginning of the winter work on the sixth and last commitment well
Kairan-1,  commenced in July, was suspended and is due to be resumed in the spring of
2004. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
May 2003, the Kazakh authorities  approved the appraisal plan of the Kalamkas structure,
 where in 2002 oil was discovered with the Kalamkas-1  exploration well. 3D seismic
surveys were completed at the end of October 2003. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United
States</I>. Eni has been present in the United States since 1966 and holds various
mineral interests in the Gulf of Mexico. Eni&#146;s main producing fields (Eni&#146;s interest
100%) are located in the Grand Isle 102, Green Canyon 254-297 (where the Allegheny field
is located) and Ewing Bank 921/964-5 (where the Morpeth field is located) concessions;
other fields in which Eni holds interests are located in the Garden Banks 602/646 (Eni&#146;s
interest 34%), Mississippi Canyon 890-1/934-5 (Eni&#146;s interest 32%) and Mississippi Canyon
194-5/150-1 (Eni&#146;s interest 16.5%) concessions. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
November 2003 production started at the oil and gas Medusa field (Eni&#146;s interest 25%) at
an initial level of 2 KBOE/d. Production is expected to peak at 9 KBOE/d in 2004. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is operator in the development of the K2 oil field in the Green Canyon 562-3 concession
 (Eni&#146;s interest 18.17%),  in the offshore of the Gulf of Mexico;  the first and second
appraisal wells (K2-2 and K2-3) of field K2 were drilled in January and May showed an
extension and depth larger than expected. Production is expected to start-up in early
2005 with production peaking at 5 KBOE/d in 2007 </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
holds various exploration licences, in particular as operator with interests varying from
30% to 100% in 4 exploration licences in the East Breaks concession,  5 in the Garden
Banks concession,  20 in the Green Canyon concession and 18 in the Mississippi Canyon
concession. A wide exploration campaign is ongoing. In 2003 a new oil discovery was made
with the St. Malo well in Block WR 678 (Eni&#146;s interest 1.25%). </FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Venezuela</I>.
Eni has been present in Venezuela since 1998 and is operator with a 100%
interest of the Daci&#243;n oil field regulated by a service contract with a 20 year term.
In 2003 production from this field amounted to 54 KBBL/d net to Eni. In addition Eni
holds a 26% interest in the Corocoro oil field located in the West Paria Gulf at the
mouth of the Orinoco river. The field&#146;s development project approved in April 2003
will proceed by phases and expects to reach a daily production of 15 KBBL/d net to Eni in
the first phase. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
holds interests in two exploration  licences:  Gulf of Paria East (GOPE, Eni&#146;s interest
30%) and Gulf of Paria West (GOPW,  Eni&#146;s interest 40%) both in conventional  waters. In
the first one the Delfin well was drilled and found heavy oil. In the second one the
Tiburon well is being drilled. </FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Pakistan</I>.
Eni has been present in Pakistan since 2000. Eni&#146;s main natural gas
producing fields are Bhit (operated by Eni with a 40% interest), Kadanwari (Eni&#146;s
interest 18.42%), Zamzama (17.75%), Sawan (23.68%) and Miano (15.16%). </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Kirthar  Foldbelt Eni is operator in the Manchar and Gorakh permits (the latter  obtained
in April 2003).  In 2003 the ZZ-North-1 and ZZ-East-1  wells in the Zamzama block
 containing  natural gas were linked to existing  production  facilities.  In the Middle
Indus Basin Eni is present in the Mubarak (Eni&#146;s interest 38%),  Gambat (31.58%),  South
West Miano 2 (33.3%) and Latif (33.3%) blocks obtained in October 2003. In 2003 in this
area two gas discoveries were made: Kadanwari-14 in the Kadanwari production block and
Rehmat-2 in the Mubarak block (Eni&#146;s interest 38%) </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January 2004, the Bhit gas field started production. The field is located 180-kilometers
north of Karachi. In 2003 it produced  104.4mmCF/day net to Eni. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the Sawan block (Eni&#146;s interest  23.68%) in June 2003 production of the natural gas
treatment plant started earlier than planned in the first  development  phase. In
September also Phase 2 was completed which included the drilling of 3 wells. Full
production is expected for 2005 at about 75.4 mmCF/day net to Eni. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
<I>Russia</I>, Eni is the operator with a 50% interest of the Severo Astrakhansky license,
covering an area of 1,800 square kilometers situated at the mouth of the Volga river,
on the edges of the great pre-Caspian sedimentary basin. The area is crossed by the
Caspian Pipeline Consortium oil pipeline, which started operations in 2002. Eni is evaluating the results
of the well Severo Astrakhan 1. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Storage</I></B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Natural gas storage
 activities  are performed by Stoccaggi Gas Italia SpA (Stogit) to which such  activity
was conferred on October 31, 2001 by Eni SpA and Snam SpA, in compliance  with article 21
of  Legislative Decree No. 164 of May 23, 2000, which provided for the separation of
storage from other activities in the field of natural gas. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Storage services are
provided by Stogit to its customers through eight storage fields located in Italy, based
on ten storage concessions3 vested by the Ministry of Productive Activities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With decision No. 26
of February 27, 2002, the Authority for  Electricity and Gas determined  tariff criteria
for modulation,  mineral and strategic  storage  services for the first regulated
 period,  starting on April 1, 2002 until March 31, 2006 and effective  retroactively
 from June 21, 2000. On March 18, 2002 Stogit filed its proposal of tariffs for
 modulation,  upstream and strategic  storage for the first regulated period.  With
decision No. 49 of March 26, 2002 the Authority  repealed  Stogit&#146;s  proposal and defined
 tariffs for the first  regulated  period.  Stogit filed an appeal against both Authority
 decisions with the Regional  Administrative  Court of Lombardia  requesting their
 cancellation.  The Regional  Administrative  Court of Lombardia  repealed Stogit&#146;s
appeal with decision of September 29, 2003. Stogit appealed to the Council of State
against this decision on February 3, 2004. Pending the proceeding, Stogit is currently
applying the tariffs set by the Authority. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stogit continued the
reorganization of its activities,  optimizing  processes and resources in order to
increase efficiency of services rendered in accordance with regulations imposed on it and
to expand the range of services rendered.  From the beginning of its operations Stogit
markedly increased the number of customers served and the share of revenues from third
parties:  from a nearly negligible amount,  these accounted for 35% of total revenues in
2003. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Storage</B> </FONT> </P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="24%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Available capacity </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Modulation and mineral </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(billion cubic meters) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.3 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.1 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7.1</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Share utilized by Eni </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>53</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Strategic </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(billion cubic meters) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.1 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.1 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5.1</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Modulation and upstream storage customers </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(no.) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>24</B> </FONT> </TD></TR>
</TABLE>

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<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>__________________________ </FONT></DIV>

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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><SUP>3 </SUP>Two of these are
not yet operational. </FONT></TD>
  </TR>
</TABLE>

<BR><BR>
<!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<a name="a18"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Gas &amp; Power</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in the business of natural gas supply,  transport,  distribution and sale in
Italy and in the rest of Europe. Eni is also engaged in the business of electricity
generation which is conducted in Italy. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is pursuing the development of international  sales in order to compensate the lower
growth of sales in the domestic  market,  due to the limits imposed on operators by the
applicable  regulations.  In Italy,  Eni intends to maintain  sales volumes within the
regulatory  limits through the optimal  allocation of supplies  between direct sales in
Italy and in the rest of Europe and by using natural gas at its own electricity
 generation plants and, at the same time,  leveraging on the expected demand growth,  in
particular for electricity  generation.  Management is committed to develop an effective
 commercial by means of market segmentation, the integration of natural gas and
electricity commercial offer and the customization of services. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
plans to develop Eni&#146;s presence in certain European gas markets, in particular in
countries which management  believes to have interesting growth and profitability
 prospects (Iberian Peninsula, Turkey,  Germany) where Eni can make optimal use of its
diversified  portfolio of supply contracts and its extensive gas pipeline network which
allows the supply of natural gas from several sources.  Eni completed its entry into
those markets by means of acquisitions  and construction of  infrastructure  and in 2003
it started the operational and commercial phase of this plant. Eni also intends to expand
its presence in LNG activities in order to increase the value of its proved natural gas
reserves in West and North Africa and in the Far East. Eni plans to intensify its cost
reduction actions  especially in transport  activities and in secondary distribution
activities in Italy. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
matters regarding future natural gas demand and sales targets  discussed in this section
and elsewhere herein are  forward-looking  statements that involve risks and
uncertainties  that could cause the actual results to differ materially from those in
such  forward-looking  statements.  Such risks and uncertainties  relating to future
natural gas demand include changes in underlying economic factors,  changes in
regulation,  population growth or shrinkage,  changes in the relative mix of demand for
natural gas and its principal  competing fuels, and unexpected  developments in the
markets for natural gas and its principal competing fuels.</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Demand for
Natural Gas in Italy</I></B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 demand for natural gas in Italy amounted to about 77 billion cubic meters
 (increasing by 9.4% over 2002).  About 20% of natural gas  requirements  were met
through domestic  production  (including natural gas volumes withdrawn from storage),
while imports covered 80%. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According
to Eni&#146;s own forecasts natural gas demand in Italy is expected to reach about 90 billion
cubic meters in 2010,  corresponding to an annual average increase of about 2.5%. The
share of natural gas on total domestic energy requirements is expected to reach nearly
37% as compared to the present 33%. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
believes that most of this increase will concern natural gas used in electricity
 generation,  because of the significant advantages of the use of natural gas in combined
cycle plants, thanks to its lower investment cost, higher yields and reduced polluting
 emissions as compared to other fuels.  Demand is expected to increase also from
residential and commercial users, due to the further expansion of the natural gas
 distribution  network in Southern Italy and the increased use of natural gas in
residential  space heating in households and services,  in large tertiary firms and as
vehicle fuel. Many of the factors that may  influence  future  trends in natural gas
demand in coming years are,  however,  outside of  management&#146;s  control;  among these
there are trends in the price of natural gas  compared to other fuels,  the development
of the electricity sector, the economic growth,  climate fluctuations,  environmental
laws and the continuing  availability of natural gas imported from foreign countries.  If
the growth of the Italian natural gas market were to be lower than management&#146;s
expectations, Eni&#146;s results of operations may not benefit from expected increase in
volumes. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Natural
Gas Purchases</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;About
80% of the natural gas  requirements of Eni&#146;s Natural Gas segment are met by imports
(mainly from Algeria,  Russia,  the Netherlands and Norway) under long-term supply
 contracts,  and the balance by purchases of gas produced in Italy by Eni&#146;s Exploration &amp; Production
 segment.  In 2003, Eni&#146;s Gas &amp; Power segment purchased 66.42 billion cubic meters of
natural gas in primary  distribution,  with a 2.39 billion cubic meters increase over
2002, up 3.7%.  Volumes of natural gas from domestic  production  (12.12 billion cubic
meters)  accounted for 18% of total supplies (20.2% in 2002) with a decrease of
approximately  0.55 billion cubic meters over 2002, down 4.3%. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
gas volumes  supplied  outside Italy (54.30 billion cubic meters)  represented  82% of
total supplies (80% in 2002) with an increase of 2.94 billion cubic meters,  up 5.7%,
 concerning  essentially purchases  destined to trading (1.17 billion cubic meters),  in
particular of gas produced by Eni in the United  Kingdom,  purchases from Norway (0.61
billion cubic meters),  from Russia (0.3 billion cubic meters, following  the reaching of
full  operation of the supply  contract  signed in 1996) and Croatia  (0.34 billion cubic
 meters).  The increase in LNG  purchased  from &#147;Others&#148; is related to the supply
 contract with Iberdrola. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 a total of 0.84 billion cubic meters of natural gas were withdrawn from the storage
sites of Stoccaggi Gas Italian SpA (in 2002 a total of 1.43 billion cubic meters was
input to storage). </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth Eni&#146;s purchases of natural gas by source for the periods indicated. </FONT></P>


<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD></tD>
     <TD COLSPAN="5"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(billions of cubic meters)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.16 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.64 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.62 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.67 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.12 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Algeria </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20.40 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21.56 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.39 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.35 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.53 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Algeria (LNG) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.06 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.01 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.79 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.92 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.98 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Russia </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19.09 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21.03 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19.51 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.62 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.92 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Netherlands </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.87 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.09 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.00 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.55 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.41 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Norway </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.10 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.83 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.44 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Croatia </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.31 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.65 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchases for trading and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.48 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.65 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (LNG) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.30 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.72 </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Primary distribution (1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.58 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.33 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62.41 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.03 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66.42 </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Withdrawals (inputs) from (to) storage </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.58 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2.43) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.13 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.43) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.84 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Internal consumption </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.34) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.65) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.58) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.14) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.24) </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Available volumes for primary distribution </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61.96 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62.46 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67.02 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Available volumes for secondary distribution <BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.67 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.48 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.79 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.44 </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.73 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.87 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71.46 </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="Rodape Times" FSL="Workstation" -->
<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>From
2003 the Gas &amp; Power segment  manages trading  activities of purchased  natural gas,
mainly in the North Sea, which were formerly  performed by the  Exploration &amp; Production
 segment.  In order to allow a homogeneous comparison natural gas volumes purchased and
sold in 2002 were increased by 1.70 billion cubic meters.</FONT></P></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to cover medium and long term demand for natural gas, in particular on the Italian
market,  Eni is a party in multiannual  import  contracts with the main operators of
producing  countries with an average residual duration of about 17 years.  Existing
contracts,  which contain take-or-pay clauses, will provide a total of approximately 67.3
billion cubic meters of natural gas per year (28.5 from Russia, 21.5 from Algeria, 9.8
from the Netherlands, 6 from Norway and 1.5 from Nigeria) from 2008. Minimum contract
volumes (take-or-pay) represent an average of 85% of volumes contracted. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 due to a growth of the natural gas market in Italy lower than  planned and to an
increase  of the  volumes of natural gas  imported  into Italy by third  parties,  Eni&#146;s
 offtake was lower than the minimum contracted  volumes.  Eni has paid its suppliers a
cash outlay of euro 6 million providing to Eni the right,  exercisable within 10 years,
to withdraw about 540 million cubic meters of gas after payment of the residual portion
of price and after having met the minimum offtake  requirements  applicable in each year.
 Management expects to recover the sum paid with volumes withdrawn already in 2004,
 provided that the natural gas market grows according to  management&#146;s  expectations.
 See also &#147;Item 3 &#150; Risk Factors&#148; for a description of the impact of the  liberalization
 of the Italian  natural gas market on Eni&#146;s  take-or-pay contracts for the purchase of
natural gas. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni and Gazexport  (Gazprom)  signed an agreement which provided for Eni the right
to sell the gas it purchases from Gazexport  (Gazprom) in countries other than Italy.
 This agreement  entails the cancellation of the so called territory  destination clause.
 Gazexport  (Gazprom),  in turn, can sell its gas to other Italian operators.  This
agreement was filed for approval to the European  Commission,  which concluded its
examination of the contract,  started when Eni and Gazexport  (Gazprom) agreed on the
destination  clause.  The Commission  requested Eni to assume additional  obligations
 favoring  competition,  in particular:  (i) Eni should make volumes of natural gas
purchased  from  Gazexport  (Gazprom)  available  outside  Italy;  and (ii) Eni shall
promote the upgrading of the TAG gasline (from Austria into Italy) with deadlines
consistent with the decision of third parties to build LNG terminals in Italy. </FONT></P>







<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
Gas Sales in Italy and Europe</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)
Primary Distribution</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
gas sales in primary distribution (65.12 billion cubic meters) increased by 4.68 billion
cubic meters over 2002, up 7.7%. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth Eni&#146;s sales of natural gas by principal market for the periods
indicated. </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>Year Ended December 31,</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD colspan=5 ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(billions of cubic meters)</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>&nbsp;</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Wholesalers </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.85 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.26 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.83 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25.14 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24.07 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Industrial users </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.33 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.79 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.92 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.83 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Thermoelectric users </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.01 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.87 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.81 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.48 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.03 </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Italy</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>60.19</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>59.92</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>58.89</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>50.54</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>50.93</I> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Rest of Europe</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>0.05</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>1.33</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>3.07</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>9.90</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>14.15</I> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sales in primary distribution </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61.96 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.44 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.12 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sales in secondary distribution outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.67 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.48 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.79 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.44 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.73 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.87 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.23 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69.56 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Volumes consumed by Eni </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.02 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.90 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Total </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.73 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.87 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71.46 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
</TABLE>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
gas sales in Italy (50.93 billion cubic meters) increased by 0.39 billion cubic meters, up
0.8%, due to higher sales to the thermoelectric segment (up 2.55 billion cubic meters) and
a colder weather whose effects were offset in part by lower sales to industries (down 1.09
billion cubic meters) and wholesalers (down 1.07 billion cubic meters) due to competitive
pressures. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
in the rest of Europe (14.15 billion cubic meters) increased by 4.25 billion cubic meters,
up 42.9% due mainly to: (i) the progressive coming on line of long-term supply contracts
with operators of the natural gas market (1.54 billion cubic meters); (ii) the start-up of
marketing activities in Northern Europe (1.22 billion cubic meters); (iii) the start of
LNG supplies to the Spanish electric company Iberdrola (0.70 billion cubic meters) in the
second half of 2002 and of supplies to the Turkish market via the Blue Stream gasline in
February 2003 (0.63 billion cubic meters). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Italian natural gas market is made up of three main segments: residential and commercial,
industrial and thermoelectric. Customers can be divided into two groups: final users
directly consuming natural gas and wholesalers (mainly local distribution companies)
purchasing natural gas to sell it to final customers (mainly small industries and
residential and commercial users). According to the types of distribution, natural gas
sales are divided into: (i) large distribution (primary distribution) which includes sales
to wholesalers and large customers; and (ii) local distribution (secondary distribution)
represented almost exclusively by sales made by local distribution companies to commercial
and residential customers, the tertiary sector and small industries located in urban
areas, receiving natural gas from low pressure networks. From January 1, 2003 with the
complete opening of the natural gas market, as per Legislative Decree No. 164/2000, all
customers are allowed to purchase natural gas at any source and to enter contracts with
transmission companies on the national network and with distribution companies on local
networks for the transmission to the delivery points. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 wholesalers, including local distribution companies and automotive natural gas
sellers, sold over 34 billion cubic meters to final users (44% of total natural gas
consumption), with an 8% increase over 2002. In 2003, Eni&#146;s natural gas sales to
wholesalers amounted to 24.1 billion cubic meters. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
gas consumption in the industrial segment (linked to the national and regional networks)
amounted to over 16 billion cubic meters (22% of total consumption), with a 1% increase
over 2002. In 2003, Eni&#146;s sales of natural gas to industrial users amounted to about
13 billion cubic meters (including volumes consumed in operations). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural
gas consumption in the thermoelectric segment amounted to over 26 billion cubic meters
(34% of total consumption), with a 17% increase over 2002. This segment includes
electricity producers and distributors (Enel and some municipal utilities) and industrial
producers of electricity. In 2003, Eni&#146;s sales of natural gas to thermoelectric users
amounted to 15.7 billion cubic meters (including volumes consumed in operations). </FONT></P>





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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
reorganized its activities by creating six new branches in Italy in order to react
promptly and efficiently to market requirements, while paying increasing attention to
customers&#146; needs and applying the home working model to all its sales personnel. The
new marketing strategy is aimed at customer satisfaction, through the setting of a new
commercial offer tailored to customers needs. In particular the customized commercial
offer includes a range of elements: from the standard to the modular profile which
supplies an optimal mix of options, such as, for example, various price formulas and types
of indexes aimed at controlling price volatility, availability of services and technical
assistance. At present Eni provides its industrial customers with a wide range of high
value added technical services on the use of natural gas in particular in co-generation
and climatization. The main services provided in co-generation include: (i) studies on
co-generation and technical testing of the solutions suggested in case of construction or
upgrade of a co-generation plant; (ii) combustion analysis and energy control of existing
plants for evaluating their proper use and efficiency; (iii) tests of compliance with
safety regulations, environmental impact. A toll-free telephone line is available and in
the Gas &amp; Power section of Eni&#146;s web site an area is dedicated to natural gas
along with a mail box. Eni also started projects aimed at providing new services and is
offering them in innovative ways in particular as concerns direct relations to customers. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
new commercial efforts were coupled with intense personnel training activity aimed at
developing the new skills required by the market, at reinforcing direct relations with
customers and supporting commercial units. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)
Secondary Distribution</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni,
through its 100% subsidiary Italgas, is the Italian leader in the retail sale of natural
gas to residential and commercial users with 5.8 million customers in 2003 (about a third
of the market). In 2003, Eni&#146;s retail sales in Italy amounted to 8.4 billion cubic
meters (approximately 25% of the retail market). Eni owns a low pressure urban network in
Italy consisting of 46,780 kilometers of pipelines at December 31, 2003, and serving 1,228
municipalities, including Rome, Naples, Venice, Florence and Turin (the latter through an
affiliate). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
activities and customer management are performed by Italgas Pi&#249; SpA, established in
2002 by Italgas SpA in implementation of the regulations contained in Legislative Decree
No. 164/2000, which provided for the separation of retail sales from all other activities
in secondary distribution of natural gas; the new company was conferred the relevant
business and is now present on the market with a new and wider supply of services; in
particular: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a post-counter service for extraordinary and planned maintenance interventions on
autonomous household heating systems, offered in two forms: &#147;Assistenza Italgas
Pi&#249;&#148; concerning the planned maintenance of heaters fired with any fuel that
need to be periodically monitored and subjected to combustion analysis and &#147;Pronto
Assistenza&#148; concerning fast interventions of skilled technicians for repairing
damages or checking heaters and other parts of the heating plant; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a service of energy management addressed mainly to public administrations, condominiums,
the tertiary sector and industrial enterprises supplying heat instead of just natural gas,
design of heating systems and consultancy services. This service provides immediate
solutions to problems of management, design and upgrade of plants and frees customers from
technical and organizational tasks as wells as from responsibilities and administrative
tasks. </FONT></p></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Italgas
Pi&#249; also improved its marketing channels by adding to the traditional access point
other specific channels: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
an integrated toll-free call center system (located in Turin, Rome, Florence, Naples,
Chiavari) which customers can access for any information concerning services provided:
payment of bills, information on consumption, requests for service and all related
matters; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
a network of franchisors made up of 94 &#147;shops&#148; with flexible opening hours
available to customers for any request concerning services provided. Italgas Pi&#249;
targets include the establishment of 460 franchised shops by 2005. </FONT></p></TD>
</TR>
</TABLE>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
interactive web site www.italgaspiu.it represents a true online shop where customers can
find all information concerning services provided, check their accounts, simulate
consumption, change personal data and organize payments through their bank account. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
business will be developed by entering new areas and promoting new services such as air
conditioning and co-generation for small enterprises, in order to foster new forms of
consumption. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside
Italy Eni is present in natural gas secondary distribution in: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Hungary through Tigaz (controlled by Eni with a 50% interest), the largest regional gas
distribution company in the country. In 2003 Tigaz consolidated its market share by
purchasing a majority stake in three natural gas distribution companies: Mol-G&agrave;z
(now Tigaz 2), Zs&agrave;mb&egrave;rkg&agrave;z and Turulg&agrave;z operating in
north-central Hungary (see below). In 2003, natural gas sales in Hungary amounted to 3.3
billion cubic meters. In 2003 customers supplied were approximately 1.1 million in 1,120
municipalities through an about 24,000-kilometer long network; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Argentina, through Distribuidora de Gas Cuyana SA (Eni&#146;s interest 45.6%), which
operates in the urban area of Mendoza, serving about 371,000 customers through a network
of about 9,000 kilometers of pipelines. In 2003, it handled 1.8 billion cubic meters of
natural gas; about 1 billion was sold to end users, while the rest was transported on
behalf of third parties; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Slovenia, through Adriaplin Doo (Eni&#146;s interest 51%), which distributes natural gas
to about 8,000 customers in 17 urban centers through a network of about 363 kilometers of
pipelines. In 2003, it sold 37 million cubic meters. </FONT></p></TD>
</TR>
</TABLE>


<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;Transmission,
Dispatching and Regasification Assets</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transmission,
dispatching and regasification activities in Italy are carried out by Snam Rete Gas SpA, a
company listed on the Italian Stock Exchange and in which Eni holds a 50.07% interest,
down from the 59.124% interest held by Eni as of December 31, 2003 as a result of the
sale of a 9.054% stake that occurred at the end of March 2004. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
primary transmission network was transferred to Snam Rete Gas in July 2001 pursuant to
Legislative Decree No. 164/2000 concerning the Italian natural gas market, which provided
for the legal separation of transmission and dispatching activities from all other
activities in the natural gas segment, exclusive of the storage that, in any case, has to
be subjected to accounting and management separation. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Following the enactment of Law
Decree No. 239/2003 (protection against black-outs), converted with amendments into Law
No. 290/2003, which prohibits companies operating in the natural gas and electricity
industries to hold stakes higher than 20% in the share capital of companies owning and
managing national networks for the transmission of natural gas and electricity from July
1, 2007, Eni will have to sell further stakes of Snam Rete Gas share capital until it
reaches the 20% maximum interest allowed. Management believes this disposition process
will not entail particular risks with regard to the ability of Eni to realize the fair
value of further stakes of Snam Rete Gas share capital given the available time to
complete the disposition and the profitability of Snam Rete Gas. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Italian natural gas transmission system is made up of a national network and a regional
transmission network, as defined by the Decree of the Ministry of Industry (now the
Ministry of Productive Activities) of December 22, 2000, which implements Legislative
Decree 164/2000. These networks include pipelines, for a total length of about 31,220
kilometers, of which 30,120 kilometers are owned by Eni. The national network is composed
of high pressure trunklines, mainly with a large diameter, which carry natural gas from
the entry points to the system&#151;import lines, storage sites and main national natural
gas fields&#151;to the linking points with the regional transmission network. The national
network also includes some interregional lines reaching important local markets. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
regional transmission network is composed of the remaining lines and allows the
transmission of natural gas to industrial user, power stations and local distribution
companies of the various local areas served. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
December 31, 2003 the national pipeline network owned by Eni extended for 7,993
kilometers. Underground pipelines have a maximum diameter<SUP>4</SUP> of 48 inches and
carry natural gas at pressures of 24 to 75 bars. The underwater pipeline crossing the
Messina Strait has a diameter of 20 to 26 inches and carries natural gas at a pressure
equal to or higher than 115 bars. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
major pipelines interconnected with import trunklines that are part of Eni&#146;s national
network are: </FONT></P>


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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">for natural
gas imported from Algeria: two lines with a 48/42-inch diameter<SUP>4</SUP>, each
approximately 1,500-kilometer long, including the smaller pipes that cross underwater
the Messina strait, which link Mazara del Vallo (on the Southern coast of
Sicily) to Minerbio (near Bologna). These lines are linked to the import pipelines
that carry natural gas from Algeria through the Sicily Channel. The pipeline
transmission capacity amounts to approximately 87 million cubic
meters/day; </FONT> </DIV></UL>



<hr size=1 align=left width=20%>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=bottom>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><SUP>4</SUP> </FONT> </TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>The
diameter of lines varies according to the route&#146;s carrying requirements or according to
their different construction or upgrading date. </FONT></P></TD>
</TR>
</TABLE>




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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>for natural
gas imported from Russia:  three lines with 48/42/36/34-inch  diameter
extending for a total length of approximately 900 kilometers that are linked to the
Austrian network in Tarvisio and cross the Po Valley reaching Sergnano
               (near Cremona) and Minerbio. The pipeline transmission capacity amounts to
84.4 million cubic meters/day; and </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>for natural
gas imported from the Netherlands and Norway:                two 177-kilometer long
lines, with a 48-inch diameter,  extending from the Italian border at Passo Gries
(Verbania), the point of connection with the Swiss network, to the node of Mortara, in
the Po                Valley. The pipeline transmission capacity amounts to 60.7 million
cubic meters/day. </FONT></DIV></UL>




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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni&#146;s national network increased by 50 kilometers due to the entry into service
of lines: (i) from Istrana to Camisano (37 kilometers); (ii) from Bernalda to Brindisi (7
kilometers); (iii) from Malborghetto to Bordano (6 kilometers). The national transmission
network will be upgraded by means of: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the laying of a third line with a 48-inch diameter over 264 kilometers (124 of which
already operational as of December 2002) from Tarvisio (Udine) to Zimella (Verona) on the
pipeline carrying natural gas imported from Russia and the upgrade of the Malborghetto
station. Works are expected to be completed by 2007; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the laying of a pipeline (66-kilometer long with a 36-inch diameter) from Gela to Enna
(point of connection with the pipeline importing gas from Algeria) to allow the
transmission of natural gas from Libya (up to 24 million cubic meters/day). This pipeline
is expected to start operations in 2004; and </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=4%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#151; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=93%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
the laying a 70-kilometer long pipeline with a 30-inch diameter (39 already operating in
2002) from Pontremoli to Parma, with completion expected in 2004, to upgrade the
connection of the Panigaglia LNG terminal with the national network and local markets. </FONT></p></TD>
</TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
regional transmission network is composed of pipes with diameter smaller than the national
lines&#146; one and extends for a total length of 22,127 kilometers. These pipes carry
natural gas at pressures lower than 5 bars, between 5 and 24 bars and between 24 and 75
bars. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, Eni&#146;s regional network increased by 275 kilometers due to the entry into
service of the Sannicola-Ugento-Tricase pipeline in Southern Italy, of the connection with
the EniPower Ferrera-Erbognone power station and of various connections to end users. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
system is completed by: (i) 11 compressor stations with a total power of about 620
megawatts. In 2002, within the upgrading of import lines from Northern Europe, the Masera
(Verbania) compression station was completed with the installation of 3 compressor units;
and (ii) 4 marine terminals linking underwater pipelines with the on-land network at
Mazara del Vallo and Messina in Sicily and Favazzina and Palmi in Calabria. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
dispatching system is located in San Donato Milanese and oversees and monitors the whole
transmission network in cooperation with local units. Peripheral units are represented by
8 districts that monitor the transmission network through 69 centers that guarantee
operation, maintenance and control of the whole system. Each unit is responsible for
operations in accordance with technical specifications and applicable laws and
regulations. With the aim of rationalizing maintenance activities in 2003 various
interventions were performed: (i) extension of remote control/remote monitoring by
installing 74 new remote control units (valves, reduction plants and network terminals)
which allow to reduce the time necessary for interventions aimed at restoring normal
functioning and at increasing safety and reliability of operations; (ii) rationalization
of local units and reduction of their number from 74 to 69; (iii) the entry into service
on 90% of all maintenance units of a new IT system for the optimization of monitoring and
periodic supervision; (iv) extension of new remote diagnostic systems of gas compressor
units that allow for a constant monitoring of the system&#146;s efficiency and for the
optimization of costs and intervention times. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the international pipeline transmission system, natural gas enters Eni&#146;s
system through the Panigaglia (Liguria) regasification plant, which receives LNG carried
by tanker ships. This terminal is the only one of its kind in Italy, and has a maximum
input of approximately 3.5 billion cubic meters/year into the transmission network. LNG is
downloaded from tanker ships and stored, then vaporized in a regasification plant composed
of cryogenic pumps and submerged flame vaporizers. When it has recovered the gaseous
state, natural gas is input in the transmission network. This terminal also regasifies LNG
bought by Enel. In 2003, volumes of LNG regasified amounted to the equivalent of
approximately 3.5 billion cubic meters of natural gas. Upgrading of this terminal is
underway by means of an enhancement of the boil-off gas recovery system. In 2003 Eni
transported 76.37 billion cubic meters of natural gas in Italy, an increase of 1.97
billion cubic meters over 2002, up 2.65%, mainly due to increased volumes input by Edison
Gas, offset in part by the decline in volumes transported on behalf of Eni&#146;s primary
distribution (2.82 billion cubic meters). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni LNG terminal in Panigaglia regasified 3.46 billion cubic meters of natural gas
discharging 123 tanker ships (117 in 2002). </FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Natural gas volumes transported</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(billion cubic meters) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Italy <SUP>(1)</SUP></B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>On behalf of Eni's primary distribution</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>59.67</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>63.73</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>58.17</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>54.56</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>51.74</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>On behalf of third parties</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6.90</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9.45</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>11.41</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>19.84</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>24.63</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Enel </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.50 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.27 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.28 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.28 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9.18</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Edison Gas </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.52 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.10 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.98 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.34 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7.49</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Others </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.88 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.08 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.15 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.22 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7.96</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>66.57</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>73.18</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>69.58</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>74.40</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>76.37</B> </FONT> </TD></TR>
</TABLE>
<BR>
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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Include
amounts destined to domestic storage. </FONT></P></TD>
</TR>
</TABLE>




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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Italian natural gas system is supplied for about 80% with imported gas, received by Eni
outside Italy and transmitted to Italy through a network of international high pressure
pipelines for a total of about 3,800 kilometers; in which Eni owns transportation rights,
in particular: </FONT></P>


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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
 924-kilometer  long TENP pipeline  (composed of a  500-kilometer  long simple line and a
424-  kilometer  long doubling  line) with transit  capacity of 40.8 million cubic
 meters/day  and four                compression  stations,  transports natural gas from
the Netherlands through Germany,  from the German-Dutch  border of Bocholtz to Wallbach
at the German-Swiss  border. In 2003 the upgrading of this                pipeline was
completed with the entry into service of 44 kilometers of doubling line and a 3.7 million
cubic meters/day increase in transit capacity; </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
291-kilometer long Transitgas  pipeline,  with one compression  station,  which
transports natural gas from the Netherlands and from Norway crossing  Switzerland with
its 165-kilometer long main                line and a 71-kilometer  long doubling line,
from Wallbach where it joins the TENP pipeline to Passo Gries at the Italian border.  It
has a transit capacity of 60.6 million cubic  meters/day.  A new
               55-kilometer long line from Rodersdorf at the French-Swiss border to
Lostorf, an interconnection point with the line coming from Wallbach was built for the
transport of Norwegian gas; </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
 1,018-kilometer  long TAG pipeline composed of two lines, each about  380-kilometer long
and a third line 258-kilometer  long, with a transit capacity of 81.2 million cubic
meters/day and three                compression stations, which transports natural gas
from Russia across Austria from Baumgarten,  the delivery point at the border of Austria
and Slovakia, to Tarvisio, point of entry into Italy. This                pipeline is
being upgraded with the laying of a third 380-kilometer long line (258 already operating); </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
742-kilometer long TTPC pipeline,  composed of two lines each 371-kilometers long with a
transit capacity of 78.2 million cubic meters/day and three compression stations, which
transports natural                gas from Algeria across Tunisia from Oued Saf Saf at
the Algerian border to Cap Bon on the Mediterranean coast, where it links with the TMPC
pipeline; </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the
 775-kilometer  long TMPC pipeline for the import of Algerian gas,  composed of five
lines each  155-kilometer  long with a transit  capacity of 100.8  million  cubic
 meters/day,  which crosses                underwater the Sicily Channel from Cap Bon to
Mazara del Vallo in Sicily, the point of entry into Italy. </FONT></DIV></UL>




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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
August 2003 works started for the laying of the Greenstream pipeline, an underwater
520-kilometer long pipeline with a 32-inch diameter for the transport of natural gas from
Mellitah in Libya to Gela in Sicily for the transmission of natural gas from Libyan fields
(targeted at 8 billion cubic meters/year, of which 4 billion is Eni&#146;s share, with a
transmission capacity of 24.4 million cubic meters/day, and laid at a maximum depth of
1,130 meters by the Saipem Castoro 6 vessel. This project is scheduled to be completed by
September 30, 2004 with an expenditure of dollar 953 million, corresponding to euro 0.8
billion (dollar 715 million corresponding to euro 0.6 billion is Eni&#146;s share)
including the link to the national network. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
and Gazprom hold equal shares in Blue Stream Pipeline Company BV, which operates the Blue
Stream transport system, that links the Russian (Beregovaya) to the Turkish (Samsun) coast
of the Black Sea. The gasline transports natural gas produced in Russia which is sold
jointly by Eni and Gazprom in Turkey to the Turkish company Botas under a long-term
contract. Supplies to Botas started in February 2003, by year-end Botas had withdrawn
approximately 1.3 billion cubic meters of natural gas (of which 633 million were
Eni&#146;s share). Volumes transported and marketed will increase progressively in future
years and are targeted to about 16 billion cubic meters per year (8 billion net to Eni) in
2010. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Development
Projects</I></B> </FONT> </P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Portugal.</I>
          In April 2004 Eni signed an agreement with the Portuguese Government for the
          reorganization of Galp Energia (Eni&#146;s interest 33.34%) within the
          restructuring process of the Portuguese energy sector. Under the agreement Eni
          concentrates its activities in the natural gas sector through a 49% interest in
          Gas de Portugal (indirectly owned through Galp Energia) and exits the segment of
          refining and marketing of refined products in Portugal. Gas de Portugal will be
          managed jointly with Electricidade de Portugal, the other shareholder with a 51%
          interest; the natural gas transmission network owned by Gas de Portugal will be
          sold to a state-owned Portuguese company. The finalization of the Eni sale of its stake
          in Galp Energia and Eni purchase of a 49% stake in Gas de Portugal to a state-owned Portuguese company is subject to
          authorization from the European antitrust authority; in a second stage the sale
          of regulated assets owned by Gas de Portugal will be submitted to the Portuguese
          antitrust authority. When finalized, this transaction will provide Eni net cash
          proceeds of euro 667 million. In 2003 Galp sold about 3.8 billion cubic meters
          of natural gas to about 600,000 customers through a network of high, medium and
          low pressure pipelines about 9,000-kilometer long. Galp&#146;s assets include
          interest in two import infrastructures, the Transmaghreb pipeline and the Sines
          LNG terminal, that started operations in the fourth quarter of 2003, which
          provide Eni with a basis to access the Iberian market. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Spain</I>
After obtaining the relevant authorizations from European antitrust authorities and the
Spanish Government, Eni finalized the purchase of a 50% interest in Uni&#243;n Fenosa
Gas, the remaining 50% being held by Uni&#243;n Fenosa SA, with an outlay of euro 442
million including accessory costs. The transaction was achieved through a capital increase
of Uni&#243;n Fenosa Gas of euro 16 million (corresponding to 50% of its share capital
after the increase) fully paid by Eni with a surcharge of euro 425 million. Uni&#243;n
Fenosa Gas is active in natural gas supply and sale to final users and to power generation
companies. It holds a 25-year supply contract, with an option for a 25 year extension,
involving 4 billion cubic meters per year with the Egyptian Natural Gas Holding Company
(EGAS). It is active in LNG through a liquefaction plant with a capacity of over 7 billion
cubic meters per year under construction near Damietta, on the Egyptian coast and through
an 8% interest in a liquefaction plant under construction in Oman, which is expected to
start operations in 2006. In addition, it holds a 19% and a 50% interest in the Reganosa
and Sagunto regasification plants under construction, expected to start operations in
2005. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Blue
Stream.</I>  Eni and Gazprom hold equal shares in Blue Stream Pipeline
Company BV, which operates the Blue Stream transport system that links the Russian coast
(at Beregovaya) to the Turkish coast (at SamSun) of the Black Sea for the transport of
natural gas produced in Russia to be sold by Eni and Gazprom in Turkey to the Turkish
company Botas under a contract expiring in 2026. The overall project costed about dollar
2.4 billion and is comprised of two parallel underwater lines, each 380-kilometer long and
a compressor station at Beregovaya on the Russian coast of the Black Sea under completion.
Supplies of natural gas to the Turkish national company Botas started in February 2003. In
2003 Botas withdrew approximately 1.3 billion cubic meters of natural gas (of which 633
million were Eni&#146;s share). According to management&#146;s plans, volumes transported
and marketed are expected to increase progressively in future years and are targeted to
about 16 billion cubic meters per year (8 billion net to Eni) in 2010. The construction of
the Beregovaya compression station is expected to be completed in 2004. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Germany.</I>
          Eni is present on the German natural gas market since late 2002 through GVS
          (Gasversorgung S&uuml;ddeutschland GmbH) in which it acquired a 97.81% interest
          in joint venture with the German electricity operator EnBW. GVS is the fourth
          operator in the German gas market where it transports and markets about 7
          billion cubic meters of gas per year to local distribution companies serving
          about 750 municipalities in the south-western areas of the country through an
          approximately 1,880-kilometer long gas pipeline network. Through GVS and the
          development of direct sales, Eni expects to sell about 4 billion cubic
          meters/year, of which 3.4 billion cubic meters of natural gas through GVS,
          corresponding to 4% of German consumption in 2007. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Greece.</I>
          Eni holds a 49% interest in the natural gas secondary distribution companies EPA
          Thessalonica and EPA Thessaly. The two companies hold a 30-year licence for
          natural gas distribution to residential and commercial users as well as the
          right to use distribution networks. The two companies, whose operations are
          managed by Eni, are extending the distribution network in their areas covering
          about 2 million inhabitants. Natural gas sales of the two companies are targeted
          at 800 million cubic meters of natural gas per year. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Hungary.</I>
          In July 2003, Tigaz (a subsidiary in which Eni holds 50% interest) purchased a
          majority stake in three natural gas distribution companies (Mol-G&agrave;z (now
          Tigaz 2), Zs&agrave;mb&egrave;rkg&agrave;z and Turulg&agrave;z) from the
          Hungarian national company MOL for approximately euro 68 million. These
          companies supply an aggregate of approximately 150,000 customers distributing
          400 million cubic meters/year of natural gas to 407 municipalities in the
          central-eastern areas of Hungary. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
its strategy of concentration in its core business and rationalization of other
businesses, in September Eni sold its marine transport business to Carbofin Energia
Trasporti for euro 52 million. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electricity
Generation</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni,
through its subsidiary EniPower, is engaged in the electricity generation business on the
Italian market. Operating since 2000, EniPower owns power stations located at Eni&#146;s
sites in Brindisi, Ferrera Erbognone, Livorno, Mantova, Ravenna and Taranto with installed
capacity in operation of approximately 1.9 gigawatts at December 31, 2003. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to develop its electricity generation capacity and sales by exploiting the
advantages provided by the integration of natural gas and electricity, targeting in 2006
an installed capacity of 5.3 gigawatts, corresponding about 11% of electricity generation
planned in Italy at that date. Planned expenditure amounts to euro 2.3 billion, of this
1.2 already expensed. This objective will be pursued by building new capacity at
Eni&#146;s industrial sites. In particular work is underway at Ferrera Erbognone,
Brindisi, Ravenna, and Mantova with total installed capacity of about 3.8 gigawatts
(including the units started in 2003 at Ferrera Erbognone and Ravenna each with a capacity
of 0.39 gigawatt) while authorizations are awaited for the new units (0.8 gigawatt) to be
installed at Ferrara. High efficiency, low environmental impact, reduced expenditure and
construction times are the main features of these plants, which show interesting
profitability prospects due to the expected increase in demand for electricity and the
ability to operate in co-generation (combined electricity and steam generation). The
co-generation mode has been acknowledged by the Authority for Electricity and Gas as a
production mode that entails priority on the national dispatching network and the
exemption from the purchase of &#147;green certificates&#148;<SUP>5</SUP>. Eni estimates
that EniPower power stations will allow to reduce total emissions of carbon dioxide to be
reduced by 8%, with negligible amounts of particulate and sulphur oxides as well as very
low emissions of nitric oxides as compared to emissions caused by electricity generation
in Italy in 2000. EniPower intends to become a cost leader in the Italian electricity
industry thanks to the high technology content and optimal size the plants it is building.
When fully operational, consumption of natural gas of Eni&#146;s plants will reach about
6-7 billion cubic meters/year, supplied by Eni. </FONT></P>


<hr size=1 align=left width=20%>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR>
<TD VALIGN=top ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><SUP>5</SUP> </FONT> </TD>
<TD VALIGN=top WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Article
11 of Legislative Decree No. 79/1999 concerning the opening up of the Italian electricity
market obliges importers and producers of electricity from non renewable sources to input
into the national electricity system a share of electricity produced from renewable
sources set  at 2% of electricity produced from non renewable sources exceeding 100
gigawatt. This obligation can be met also by purchasing volumes or rights from other
producers employing renewable sources (the so called &#147;green certificates&#148;) to cover all
or part of such 2% share. This obligation applies to import or production of electricity
net of, among others, co-generation and volumes consumed in questions. </FONT></P></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Page Break" FSL="Workstation" -->




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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, electricity production sold amounted to 5.55 terawatthour, of which approximately
27% was sold to Eni segments, with an increase of 0.55 terawatthour over 2002, up 11%, due
essentially to the start-up of the first generating unit at the Ferrera Erbognone plant.
Eni sold 3.10 terawatthour of purchased electricity to eligible customers, with an
increase of 1.36 terawatthour, due to an increase in customers served. Sales of steam
amounted to 9,303,000 tonnes, in line with 2002. </FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=35% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Power Generation</B> </FONT> </TD>
     <TD WIDTH=29% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Purchases</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Natural gas </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million cubic meters)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">784&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">819&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>940&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other fuels </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(thousand tonnes of oil equivalent)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">936&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">885&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>847&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sales</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Electricity production sold </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(terawatthour)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.99&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.00&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5.55&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Electricity trading </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(terawatthour)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.56&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.74&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3.10&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Steam </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(thousand tonnes)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,025&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,302&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,303&nbsp;</B> </FONT> </TD></TR>
</TABLE>




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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 work for the construction of new power stations at Brindisi and Mantova started,
while power stations are under construction in Ferrera Erbognone and Ravenna . </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ferrera
Erbognone.</B> This power station will have an installed capacity of 1,030 megawatts
articulated in three combined cycle units and will be able to produce about 7 billion
kilowatthour/year and steam for industrial use. In October 2003 electricity generation
started at the first 390 megawatt unit of the three planned; commercial production started
in the first quarter of 2004. In February 2004 electricity generation started at the
second 390 megawatt unit; according to management&#146;s plans, the 250 megawatt unit is
expected to start-up in the spring of 2004, with commercial production of these two units
set for the second half of the year. The two 390 megawatt units are fired with natural
gas, while the third 250 megawatt unit will be fired in part with natural gas and
complemented with refinery gas obtained from gasification of tar from visbreaking from the
nearby Sannazzaro de&#146; Burgondi refinery (see Operating Review &#151; Oilfield
services, construction and engineering). </FONT></P>





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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According
to management&#146;s plans, the integration of the new power station with the refinery
will allow to obtain: (i) a reduction of 650,000 tonnes/year in the production of fuel oil
that will be destined to gasification; (ii) a decrease in transport costs due to lower use
of tanker trucks and trains (estimated at 20,000 and 4,000 units/year, respectively);
(iii) the option to refine different types of oil, with subsequent cost savings. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Ravenna.
          </B>Work is underway for the installation of two new combined cycle 390 megawatt
          units, fired with natural gas, that will bring the power station&#146;s
          installed capacity to approximately 970 megawatts. On November 14, 2003, the
          power station was fired for the first time at its first unit; management expects
          commercial production from both units to start in the second half of 2004. </FONT></P>









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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Brindisi.</B>
          In April work started for the construction of a new combined cycle power station
          with installed capacity of 1,170 megawatts, that is going to be Eni&#146;s
          largest power station. Total capacity will amount to 1,320 megawatts. The new
          power station, fired with natural gas, includes three units and when fully
          operational will produce approximately 7.4 billion kilowatthour/year and steam
          for industrial use. According to management&#146;s plans, the completion of the
          first unit is expected in the spring of 2005; according to management&#146;s
          plans commercial production from the first two units is expected in the second
          half of 2005; while for the third one in the first quarter of 2006. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Mantova.</B>
          Work started for the installation of two new combined cycle 390 megawatt units,
          fired with natural gas, that will bring the power station&#146;s installed
          capacity to approximately 840 megawatts. Commercial production from both units
          is expected in the first and second half of 2005 respectively. Studies are
          underway for linking this power station to Mantova&#146;s urban network through
          a remote heating system. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;Capital
expenditure</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Item 5 &#150; Liquidity and capital resources &#150; Capital expenditure by
segment&#148;. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->

<a name="a19"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Refining &amp; Marketing </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in the refining and sale of refined products mainly in Italy, the rest of
Europe and Latin America. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the refining business management plans interventions for rationalizing refining capacity
by balancing production and demand and increasing refinery efficiency and flexibility.
These are expected to increase conversion rates from the 60% average of the 2000-2003
period to 64% by 2007. Eni also intends to adjust the characteristics of its refined
products to the evolution of fuel specifications in Europe focusing on fuels dedicated to
specific market segments by leveraging on its integrated refining-logistics-distribution
system. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the logistics business management plans to increase flexibility in order to allow the
distribution of different high quality fuels and reducing costs by means of joint ventures
with qualified partners. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the distribution and marketing of refined products business management plans to continue
the process of requalification and strategic repositioning of the distribution network: in
Italy by focusing on Agip branded service stations with high throughput and high non oil
potential; in the rest of Europe by developing in selected areas. Eni&#146;s objective in
Italy is to reach European standards in terms of average throughput, services to customers
and automation. In the rest of Europe Eni intends to strengthen its position in selected
areas, in particular eastern Spain, southern France and Germany where it can obtain
logistical and operating synergies and exploit the well-known Agip brand. Management plans
to increase market shares in European target areas by buying modern and well equipped
services stations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
plans to intensify its efforts for efficiency improvements in all its business lines. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
matters regarding future plans discussed in this section and elsewhere herein are
forward-looking statements that involve risks and uncertainties that could cause the
actual results to differ materially from those in such forward-looking statements. Such
risks and uncertainties include difficulties in obtaining approvals from relevant
Antitrust Authorities and developments in the relevant market.</I> </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Supply
and trading</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, a total of 63.4 million tonnes of oil were purchased (59.5 in 2002), of which 33.6
million tonnes from Eni&#146;s Exploration &amp; Production segment, 17.6 million tonnes
under long-term contracts with producing countries, and 12.2 million tonnes on the spot
market. Some 20% of oil purchased came from North Africa, 25% from West Africa, 19% from
the North Sea, 11% from the Middle East, 10% from countries of the former Soviet Union, 7%
from Italy and 8% from other areas. Some 31.3 million tonnes were resold, representing an
increase of 4.0 million tonnes over 2002, up 15%. In addition, 3.43 million tonnes of
intermediate products were purchased (5.06 in 2002) to be used as feedstocks in conversion
plants and 16.20 million tonnes of refined products (16.57 in 2002) sold as a complement
to own production on the Italian market (5.24 million tonnes) and on markets outside Italy
(10.96 million tonnes). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refining</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in refining activities in Italy and owns interests in refineries in Germany and
the Czech Republic with a total refining capacity (balanced with conversion capacity) of
34 million tonnes (equal to 681 KBBL/d) at December 31, 2003, with 29.2 million tonnes
capacity in Italy. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
refining system in Italy is made up of five wholly owned refineries and a 50% and 28%
interest in the Milazzo and Priolo refineries in Sicily, respectively. At December 31,
2003, Eni&#146;s wholly owned refineries in Italy had a balanced capacity of 25.2 million
tonnes (equal to 504 KBBL/d) and a conversion capacity of over 16.3 million tonnes, with a
58.8% conversion equivalent rate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth certain
statistics regarding Eni&#146;s refineries at December 31, 2003. </FONT></P>




<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Location</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Ownership <BR>Interest</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Conversion <BR>Equivalent(1)</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balanced Primary Distillation Capacity(2)</B> </FONT> </TD></TR>
<TR>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Wholly-owned refineries: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Sannazzaro </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Lombardy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">160,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Gela </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sicily </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">139.3 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Taranto </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Apulia </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71.6 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">90,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Livorno </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Tuscany </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.4 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Porto Marghera </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Veneto </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22.8 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">70,000&nbsp; </FONT></TD></TR>
<TR>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total wholly-owned refineries </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">58.8 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">504,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Partly-owned refineries: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Milazzo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sicily </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69.6 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Ingolstadt/Vohburg/Neustadt </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Germany </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Schwedt </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Germany </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Kralupy/Litvinov </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Czech Rep. </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.33% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28.8 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26,500&nbsp; </FONT></TD></TR>
<TR>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total partly-owned refineries </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38.3 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">176,800&nbsp; </FONT></TD></TR>
<TR>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total Eni </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42.1 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">680,800&nbsp; </FONT></TD></TR>
<TR>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN=1><HR SIZE=1> </TD>
     <TD COLSPAN=1><HR SIZE=1> </TD></TR>
</TABLE>

<BR>


<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________________________ </FONT></DIV>



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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Stated
in fluid catalytic cracking equivalent/topping (% by weight), based on 100% of balanced
primary distillation capacity. </FONT></P></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Barrels
per calendar day. Based on percentage equity interest ownership in the refinery, not on
actual utilization of balanced primary distillation capacity. </FONT></P></TD>
</TR>
</TABLE>



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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of Eni&#146;s Italian refineries is specialized based on its logistical configuration,
geographic location and integration with other Eni business segments. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Sannazzaro,</B>
with a balanced primary conversion capacity of 160 KBBL/d , is one of the most modern and
efficient refineries in Europe. Located in the south-west of the Po Valley, at the
confluence of the rivers Po and Tessin, it produces mainly gasolines and other light
products for the supply of markets in Northwestern Italy, Austria, Switzerland and
Bavaria. Beside its primary distillation plants, this refinery contains two catalytic
reforming plants used to increase the octane number of gasolines, an isomerization plant
and three desulfurization plants, which allow a high degree of flexibility of production
related to market and environmental conditions. The conversion plants are: a fluid
catalytic cracker (FCC), a HDCK middle distillate conversion, and a visbreaking thermal
conversion. This refinery processes mainly oil from Russia and Africa incoming at the
nearby Genoa harbor and oil from Eni&#146;s nearby Villafortuna field. From a logistical
standpoint this refinery is located along the route of the Central Europe Pipeline, which
links the Genoa terminal with the French-speaking part of Switzerland and Bavaria. In 2003
expenditure was dedicated to the upgrade of diesel fuel manufacture in line with new
European regulations in force from 2005 and to the construction of a new tar (heavy
residue from visbreaking) gasification plant that will produce syngas from fuel oil and
will be used to fire the nearby EniPower power station. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Gela,</B>
with a balanced primary refining capacity of 100 KBBL/d, represents an upstream integrated
pole with the production of heavy crudes obtained from nearby Eni fields offshore Sicily,
while downstream it is integrated with Eni&#146;s nearby petrochemical plants. Located on
the southern coast of Sicily, it manufactures fuels for automotive use and residential
heating purposes, as well as petrochemical feedstocks. Its high conversion level allows it
to minimize the yield of fuel oil and semi-finished products. Beside its primary
distillation plants, this refinery contains conversions plants such as a FCC and two
coking plants. All these plants are integrated in order to process heavy residues and
manufacture valuable products. Besides its primary distillation plants, this refinery
contains the following plants: an FCC reactor with advanced technology and two coking
plants for the conversion of low grade feedstocks and vacuum conversion of heavy residues.
All these plants are integrated in order to process heavy residues and manufacture
valuable products. This refinery also contains modern residue and exhaust fume treatment
plants which allow the refinery to reduce the environmental impact of its operations. Oil
and oil products are handled on land and by sea. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
November 2003, the refinery was shut down as a consequence of a decree of the Court for
preliminary investigation of Gela in order to allow the Court and the public prosecutor of
Gela to evaluate the conditions of the refinery&#146;s storage tanks and the risks of
spillover of refined products. The refinery resumed its activity in January 2004. See
&#147;Item 18 &#150; Financial Statements &#150; Note No. 23 Legal Proceedings&#148;. This
standstill had a negative impact on the operating income of the Refining &amp; Marketing
segment. See &#147;Item 5 &#150; Results of operations- Operating Income&#148;. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Taranto,</B>
with a balanced primary conversion capacity of 90 KBBL/d, can process a wide range of
crudes and semi-finished products with great operational flexibility. It mainly produces
fuel for automotive use and residential heating purposes for the southeastern Italian
markets. Beside its primary distillation plants, this refinery contains desulfurization
plants, and conversions plants such as: a two-stage thermal conversion plant
(visbreaking/thermal cracking) and an RHU conversion plant, one of the most advanced
plants in the world with high yield of valuable products and low environmental impact. The
plant is provided with a column for amminic washing of the gas deriving from the RHU
process, which extends its useful life. It processes most of the oil produced in
Eni&#146;s Val d&#146;Agri fields carried to Taranto through the Monte Alpi pipeline; in
2003 a total of 2.1 million tonnes of this oil were processed. In 2003 the topping unit
was upgraded in order to respond to the increasing availability of oil from the Val
d&#146;Agri fields. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Livorno,</B>
with a balanced primary refining capacity of 84 KBBL/d, manufactures gasolines, specialty
products and lubricant bases. Besides its primary distillation plants, this refinery
contains two gasoline treatment plants, an isomerization plant and an octanization plant
for the manufacture of highly environmental friendly gasolines, as well as a
technologically advanced solvex cycle for lubricant manufacture. Its pipeline links with
the local harbor and with the Florence storage sites allow the Livorno facility to operate
with great efficiency with respect to reception, handling and distribution of products. In
2003 plants were upgraded for the manufacture of higher viscosity lubricants and the
desulfurization of gasoil provided for by the new 2005 specifications. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Porto
Marghera,</B> with a balanced primary conversion capacity of 70 KBBL/d, produces mainly
gasolines and other light products for the supply of markets in northeastern Italy,
Austria, Slovenia and Croatia. Beside its primary distillation plants, this refinery
contains a gasoline treatment plant, octanization plants and one two-stage thermal
conversion plant (visbreaking/thermal cracking) in order to increase yields of valuable
products and comply with applicable environmental requirements. At year end the
desulfurization plant was upgraded in order to comply with the new 2005 specifications. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition Eni holds a 28% stake in Erg Raffinerie Mediterranee Srl which was established in
October 2002. Eni contributed to the new established company its refinery of Priolo in
exchange for a 28% interest in the company. Eni and Erg hold put and call options
respectively on Eni&#146;s interest expiring in 2006 at a set price. Eni and Erg signed a
four-year processing contract under which Erg Raffinerie Mediterranee will process about
2.2 million tonnes/year of crudes on account of Eni and will provide to Eni refined
products obtained therefrom at a set price. Following this agreement, Eni&#146;s
processing on its own account is targeted to decline by about 7.5 million tonnes by 2006. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Germany Eni holds an 8.3% interest in the Schwedt refinery and a 20% interest in
Bayernoil, an integrated industrial pole including the Ingolstadt, Vohburg and Neustadt
refineries. Eni&#146;s refining capacity in Germany amounts to approximately 70 KBBL/d.
Eni&#146;s share of production of the three integrated refineries of Bayernoil and of the
Schwedt refinery is mainly used to supply Eni&#146;s distribution network in Bavaria and
eastern Germany. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
holds a 16.33% interest in Ceska Rafinerska (CRC) which owns and manages two refineries,
Kralupy and Litvinov, in the Czech Republic. In 2002 the CRC partners approved a plan
under which the refinery provides a service of oil processing on account of its partners
in proportion to their respective interests. This plan started up in the second half of
2003. Under this new arrangement Eni&#146;s overall balanced conversion capacity increased
by 27 KBBL/d over 2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth Eni&#146;s petroleum products availability figures for the periods
indicated. </FONT></P>



<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>(millions of tons)</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Italy</I></B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products processed in wholly-owned refineries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32.00 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32.93 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.09 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25.09 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products processed for third parties </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2.78) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3.41) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.45) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.88) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.72) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products processed in non owned refineries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.08 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.41 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.92 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.27 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.43 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products consumed and lost </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2.07) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2.11) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.95) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.91) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.64) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products available </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.23 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.82 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34.76 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32.57 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.16 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchases of finished products and change in inventories </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.45 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.30 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.19 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.06 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.61 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Finished products transferred to foreign cycle </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5.23) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4.58) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4.96) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5.56) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5.19) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products sold </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.45 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.54 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34.99 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.07 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.58 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Outside Italy</I></B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products available </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.08 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.07 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.02 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.98 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.36 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchases and change in inventories </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.06 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.27 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.27 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.41 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.78 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Finished products transferred to Italian cycle </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.23 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.58 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.96 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.56 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.19 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products sold </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.37 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.92 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.95 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19.33 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sales in Italy and outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51.82 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53.46 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52.02 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.91 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, refinery intake processing on Eni&#146;s own account in Italy and outside Italy
(35.43 million tonnes) declined by 2.30 million tonnes, down 6%, due mainly to a decline
in refining capacity related to the finalization in October 2002 of agreements on the contribution of
the Priolo refinery in exchange for a 28% stake in the newly-established Erg Raffinerie Mediterranee Srl
(a reduction of 7.5 million tonnes in refinery intake is expected in 2006) see above. Lower processing due to
standstills at the Gela refinery (in the third quarter strikes in the service businesses
of the Gela area and in the fourth quarter the seizure of tanks ordered by the local Court
&#150; see Note 23 to the consolidated financial statements &#147;Legal Proceedings &#151;
Environment&#148;) and at Sannazzaro were offset by increased processing at the Taranto,
Venezia and Milazzo refineries. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
intake processing (on own account and for third parties) on wholly owned refineries
amounted to 25.09 million tonnes (30.09 in 2002). The overall balanced capacity
utilization rate of wholly owned refineries was 100% (99% in 2002). About 32.9% of all oil
processed came from Eni&#146;s Exploration &amp; Production division (37.4% in 2002). </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Logistics</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in the logistics of petroleum products in Italy and Europe. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The storage
infrastructure is made up of 12 directly managed storage sites all over Italy and of
interests in five companies established by the major Italian operators in Vado
Ligure-Genova (Petrolig), Arquata Scrivia (Sigemi), Venice (Petroven), Ravenna (Petra) and
Trieste (DCT) aimed at reducing costs, increasing efficiency and developing innovative
integrated services to customers. Sigemi manages storage and handling of semi-finished and
refined products by means of pipelines between Arquata and Ferrera. </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the transport of oil and refined products on land Eni makes use of owns storage
facilities, pumping stations and a pipeline network, integrated by leased pipelines.
Eni&#146;s pipeline network in Europe extends over 3,173 kilometers, of these 1,476 are
wholly owned. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
logistic system also makes use of a leased fleet of tanker ships and tanker trucks for the
distribution of refined products on the retail and wholesale markets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
also owns a 65% interest in Costiero Gas Livorno, a company that operates an underground
storage facility in Livorno with the capacity to store 45,000 cubic meters of propane. </FONT></P>




<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distribution
and Marketing</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
markets a wide range of refined petroleum products, primarily in Italy, through an
extensive direct sales network, franchises and other distribution systems. The table below
sets forth Eni&#146;s sales of refined products by distribution channel for the periods
indicated. </FONT></P>




<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>(millions of tons)</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Retail marketing </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.85 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.57 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.64 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.14 </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.99 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Wholesale marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.42 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.10 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.64 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.35 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23.27 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22.67 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22.88 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21.78 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21.34 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.38 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.93 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.23 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.82 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.79 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other sales(1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.80 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.94 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.88 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.47 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.45 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sales in Italy</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.45 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.54 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34.99 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.07 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30.58 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Retail sales rest of Europe </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.36 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.35 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.47 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.57 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.02 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Retail sales Africa and Brazil </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.54 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.43 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.71 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.44 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.18 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.91 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.78 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.18 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.01 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.20 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Wholesale marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.40 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.46 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.55 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.65 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.01 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.31 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.73 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.66 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.21 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other sales(1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.06 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.68 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.52 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.29 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.12 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sales outside Italy</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.37 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.92 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.25 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.95 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19.33 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51.82 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53.46 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53.24 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52.02 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.91 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
</TABLE>


<BR>

<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>

<!-- MARKER FORMAT-SHEET="rodape ubb" FSL="Workstation" -->
<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes
bunkering, consumption for power production and sales to oil companies. </FONT></P></TD>
</TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, sales of refined products (49.91 million tonnes) decreased by 2.11 million tonnes,
down 4.1%, mainly due to lower sales in Italy to the petrochemical segment, to oil
companies and traders, also related to lower availability as a consequence of the
conferral of the Priolo refinery, the standstills of the Gela refinery and lower sales of
fuel oil due mainly to a decline in demand related to the progressive substitution of fuel
oil with natural gas in power stations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 1 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail
Marketing</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent" FSL="Default" -->
     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Italy.</I>
          At December 31, 2003, Eni&#146;s retail distribution network consisted of 7,290
          service stations (60% of which under the Agip brand), a 420 unit decrease over
          December 31, 2002, due to the sale of 281 service stations, the closure of 66
          marginal stations and the negative balance of acquisitions and expirations of
          lease contracts (104 units), whose effects were offset in part by the
          purchase/construction of 31 new service stations. Eni is implementing the
          upgrading process of its retail network in Italy by developing its Agip-branded
          core network (stations with high throughput and high non oil retail potential),
          while the process of closing down marginal service stations is in its final
          phase. Eni&#146;s objective is to reach European standards in terms of
          throughput, services provided to customers and automation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
this context the newly established IP company (operational since May 2002) consolidated
its activity. The IP network consists of mainly leased service stations devoted to
satisfying local markets, with an average throughput of 900,000 liters </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni continued its &#147;high fidelity&#148; campaign which allows customers accessing
self-service outlets provided with an electronic card to obtain price discounts as a
function of the total amount of purchased fuel. The number of cards distributed exceeded
3.5 million (2.5 in 2002). The amount of fuel purchased with the card was about 25% of all
fuel sold on Agip branded service stations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 the acceleration of the renewal process of the car fleet in Italy in favour of diesel
engines determined an increase in the share of diesel fuel on total fuel sold (from 44% in
2002 to nearly 50% in 2003). In this context the market confirmed the success of Eni
BluDiesel, a new diesel fuel with low environmental impact, sold in Agip branded service
stations from the end of 2002. This environmentally advanced product was introduced into
the market earlier than required under regulations imposed by the European Union and was
appreciated by motorists because it increases efficiency, reduces consumption and leaves
the engine cleaner than traditional diesel fuel. A total of 850 million liters of
BluDiesel were sold, corresponding to 16% of total diesel fuel volumes sold on the Agip
branded network on ordinary roads and highways and to 5.2% of all diesel fuel sales on the
Italian market. At the end of 2003 about 3,700 Agip branded service stations were selling
BluDiesel (about 1,500 at December 31, 2002), corresponding to about 85% of the Agip
network. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July 2003 on IP branded service stations sales of Plus 98 started. This new high quality
gasoline with better performance in terms of efficiency was sold in 800 service stations
(27% of the IP network) at December 31, 2003. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agip
branded service stations are located mainly on highways and other high traffic roads in
Italy. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
the process of upgrading its service station network by promoting customized services in
2003 Eni built: (i) three service stations dedicated to heavy transport, so called
&#147;Agip Truck Points&#148;, strategically located on highways with the highest lorry
traffic and provided with wide parking space, dedicated runways, and personal services
active 24 hours a day. In these service stations lorries can be washed and convenience
stores are equipped with internet services; (ii) the first &#147;Agip Multienergy&#148;
service station where all kinds of fuel are on sale (including also LPG and methane) which
obtains part of the energy necessary for servicing from solar panels installed on its
roof. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
improvement in the quality of service to customers led to a further expansion of the
automation process of the domestic network. At December 31, 2003 nearly all Agip branded
service stations were provided with a corporate credit card system (94% in 2002). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
continued the development of its non oil retail activities (retailing and catering) aimed
at promoting the development of its network in line with European standards, such as the
diffusion of self-service and innovative commercial outlets. To this end Eni owns master
franchisor rights with exclusive rights for the oil sector for some international brands
of the restaurant and catering sector. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
particular in 2003 the new Agip Caf&egrave; outlets were launched, and by year end 104
franchises were opened, while 8 new Pans &amp; Co outlets were opened and convenience
stores were reorganized under the new &#147;SpazioAgip&#148; brand name. Eni intends to
continue the development of its non oil activities and expects to provide 66% of its Agip
branded network with these structures in the next four years. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni continued the development of its Multicard paying card which covered 1.25 billion
liters (up 7.2% over 2002), while the number of customers provided with this card
increased from about 41,000 to 42,000. Multicard is used also by international truck
fleets and is part of the international Routex consortium. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 sales of refined products on retail markets amounted to 11 million tonnes, average
throughput to 1,813,000 liters and market share was 36.6% (37.5% in 2002). In particular
sales of Agip branded service stations amounted to 8.99 million tonnes with an average
throughput of 2,418,000 liters. Market share of Agip branded service stations increased by
0.6 percentage points (from 29.4 in 2002 to 30% in 2003) also due to the success of
BluDiesel. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Outside
Italy</I>. As of December 31, 2003, Eni&#146;s retail distribution network outside Italy
consisted of 3,357 service stations, of which there were 1,813 in the rest of Europe and
1,544 in Brazil. Retail sales in the rest of Europe amounted to 3 million tonnes with an
average throughput of 2,378,000 liters. Eni intends to develop its presence in selected
markets in Europe where it can leverage on logistical and operational synergies and on its
well established brand name. In this context it purchased 410 service stations, of these
164 in Spain, 221 in Germany and 25 in France. Non oil activities outside Italy are
performed under the &#147;CiaoAgip&#148; brand name on 1,025 service stations, of these
342 are in Germany and 162 in France. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retail
sales in the rest of Europe amounted to 3.02 million tonnes and increased by 450,000
tonnes, up 18%, due to the purchase of service stations in France, the Czech Republic,
Hungary and Slovakia, following agreements signed in 2002, and in France, Spain and
Germany, following agreements signed in 2003. Retail sales in Brazil and Africa declined
by 260,000 tonnes, down 18%, due mainly to the completion of the exit from the African
continent and to the effects of the streamlining of the distribution network in Brazil. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Wholesale
Marketing and Other Sales</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
sells gasoline, gasoil, fuel oil, lubricants, petroleum coke and LPG both directly to
large customers and through independent distributors on various wholesale markets. Major
customers are the agricultural and manufacturing industries, public utilities and
transport companies. Eni also sells jet fuel directly at 38 airports, of which 27 are in
Italy, and marine fuel (bunkering) directly at 38 ports, of which 23 are in Italy. In
addition, it sells virgin naphtha and fuel oil to Eni&#146;s Petrochemical segment and to
other petrochemical operators in Italy. Enel is the single largest customer of Eni&#146;s
Refining &amp; Marketing division, purchasing approximately 9% of its total refined
products requirements from Eni. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
on wholesale markets in Italy (10.35 million tonnes) decreased by 290,000 tonnes over
2002, due mainly to lower sales of fuel oil, resulting from the decrease in demand from
the thermoelectric sector, related to the progressive substitution of fuel oil with
natural gas as fuel for power stations. Market share increased by 0.2 percentage points
from 23.9 to 24.1%. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
concluded the reorganization of its wholesale activities by concentrating all businesses
into one company (Atriplex SpA) that integrates in one central and peripheral commercial
structure the segments of large and small retailers and consumers. The business was
transferred as of January 1, 2003. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
to petrochemical companies in Italy (2.79 million tonnes) declined by 1.03 million tonnes,
down 27% due mainly to lower availability of products resulting from refinery processing
(as a consequence of the conferral of the Priolo refinery and the standstills of the Gela
refinery); other sales (6.45 million tonnes) declined by 1.02 million tonnes, down 14%,
due to lower sales to other oil companies and traders. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside
Italy, wholesale sales (6.01 million tonnes) increased by 360,000 tonnes, up 6% due mainly
to higher sales in Germany and Spain. Other sales (9.12 million tonnes) decreased by
170,000 tonnes, down 2%. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Businesses</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
manufactures MTBE, a gasoline additive, through its production plant located in Ravenna,
Italy (with a capacity of 120,000 tons/year), and through plants operated by joint
ventures in Venezuela and Saudi Arabia. Eni is also a producer of methanol through a plant
operated in a joint venture in Venezuela. Additionally Eni produces and markets specialty
products such as solvents, paraffins, sulfur and aromatics. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPG</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is a leader in Italy in the production, distribution and marketing of LPG. In 2003 it sold
710,000 tonnes on retail and wholesale markets (777,000 tonnes in 2002) with a 19.4%
market share in 2003. Additional 335,000 tonnes were sold to third parties. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LPG
activities in Italy derive their products from seven Italian refineries and from imports
received at the three coast storage sites located in Livorno, Naples and Ravenna. Product
availability and customer requirements are met also with other 12 owned plants/storage
sites in Italy and 45 contracts for bottling and storage with third parties&#146;
facilities. Eni&#146;s LPG sales network is organized over seven sale areas with 19 direct
sales offices, 15 agencies and 30 concessionaires. Products are sold also to 140,000
customers owning small tanks, while the sale network of LPG bottles includes over 12,000
outlets. In the past few years LPG pipelines were developed and over 12,000 customers are
served through direct links with 95 storage facilities. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Outside
Italy, wholesale sales amounted to 1.72 million tonnes with a decrease of 60,000 tonnes,
down 3%, due to lower consumption. Market share in Brazil was 21.4% (21.3% in 2002), and
in Ecuador it was 37.4% (37.5% in 2002). In 2003 Eni sold 1,346,000 tonnes of LPG in
Brazil. There Eni owns 25 bottling facilities and 26 storage facilities. Its sales network
includes over 5,000 outlets. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lubricants</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
operates 12 (owned and co-owned) blending plants, in Italy, Europe, North and South
America, Africa and the Far East. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
Italy Eni is a market leader in lubricants with the manufacturing of base oils, primarily
at its refinery in Livorno, and in marketing. Eni owns a 33.33% share in facilities in
Italy for the reprocessing of used oils and two facilities for the production of additives
and solvents. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni started a renewal of its lubricant lines in Italy and launched new or renewed
products in a new wholly recyclable PET packaging, manufactured at the Livorno plant. The
new line, the first in the world in this material, is the outcome of in-house research and
of the application of proprietary technologies aimed at protecting the environment and
improving product quality. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, retail and wholesale sales in Italy amounted to 150,000 tonnes with a 25.8% market
share. Outside Italy sales amounted to approximately 160,000 tonnes, of these about 49%
were registered in Europe (mainly Germany, Netherlands and Spain) and 51% in the Americas
(Brazil, United States and Argentina). </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oxygenates</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni,
through its affiliate Ecofuel, sells about 2 million tonnes of MTBE (11% of world demand)
and methanol. About 70% of products are manufactured in Eni&#146;s plants in Ravenna,
Venezuela (in joint venture with Pequiven) and Saudi Arabia (in joint venture with Sabic),
the remaining 30% is bought and resold. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
expenditure</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Item 5 &#150; Liquidity and capital resources &#150; Capital expenditure by
segment&#148;. </FONT></P>


<a name="a20"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Petrochemicals </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
operates in the businesses of olefins and aromatics, basic intermediate products, chlorine
derivatives, polystyrene, elastomers and polyethylene. Its major production sites are
located in Italy and in Western Europe. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 the demand for petrochemical products was affected by the slowdown of the European
economy and by the crisis of Asian markets in the second quarter, whose effects were
enhanced by the chronic excess production capacity of this industry and the competitive
pressure of manufacturers from the Middle East and South East Asia, who benefit from lower
production costs as compared to European manufacturers. In this context the margins of
petrochemical products, in particular polymers, declined over 2002, due to the increase in
monomer costs that could not be totally transferred onto sale prices due to a weak demand
and competitive pressures. Forecasts for 2004 indicate a modest recovery in demand, but
the strong competitivity of the sector will keep prices under pressure, even if a modest
decline is expected in the cost in euro of oil-based feedstocks. See "Glossary" for a definition of margin. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
its restructuring process, in the light of the persistent weak conditions of the trading
environment, Eni intends to continue the restructuring process of its petrochemical
activities with the objective of reducing the number of its industrial plants and sites
and increasing efficiency. In this context in 2003 Eni defined the sale of the Baytown
(Houston, Texas) plant to Lee Chang Yung Chemical Industry Corp. (LCY) for dollar 41
million. The Baytown plant has been operating since 1993 with a production capacity of
50,000 tonnes/year of styrenic block co-polymers, thermoplastic rubber used in modified
asphalt, decking systems, insulation systems, adhesives and footwear. In 2004 a plan is
underway for the final standstill of certain plants (the Porto Marghera butadiene plant,
the polybutadiene cis, compound line ABS and dimethylcarbonate plants in Ravenna). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
of petrochemical products (5,266,000 tonnes) decreased by 227,000 tonnes over 2002, down
4.1%, due to a generally weak demand and lower product availability related to standstills
of plants for maintenance and accidental causes. Production (6,907,000 tonnes) declined by
209,000 tonnes, down 2.9%. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
nominal production capacity increased by 1 percentage point, due to increases in polymer
manufacturing plants outside Italy. The average capacity utilization rate calculated on
nominal capacity declined by 3 percentage points (from 74.3 to 71.3%), due to a weak
demand and to standstills of plants for maintenance and accidental causes. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;About
39% of total production was directed to Eni&#146;s own production cycle (37% in 2002).
Oil-based feedstocks supplied by Eni&#146;s Refining &amp; Marketing segment covered 30%
of requirements, a decline over 2002 due to the contribution of the Priolo refinery to Erg
Raffinerie Mediterranee Srl (Eni&#146;s interest 28%) effective from October 2002 and the
standstills of the Gela refinery (see Operating Review &#151; Refining &amp; Marketing
&#151; Refining, above). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth Eni&#146;s main petrochemical products availability for the periods
indicated. </FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>Year ended December 31,</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD colspan=5 ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>(thousands of metric tons)</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Basic petrochemicals </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,354&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,475&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,119&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,304&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,014&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Styrene and elastomers </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,584&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,693&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,537&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,538&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,635&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polyethylene </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">109&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">108&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,274&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,259&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polyurethane </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">252&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">255&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">91&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,298&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,532&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,830&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,116&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,907&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Internal consumption </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,634) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,674) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,185) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,607) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,651) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchases and change in inventories </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">957&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">757&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">588&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">984&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.010&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Total products </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,622&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,616&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,233&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,439&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,266&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
</TABLE>

<BR>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>

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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>As
compared to 2002, in 2003 Eni's activities have been grouped differently: Syndial (former
EniChem) was included in the "Other activities" segment, which includes all Eni companies
not included in specific segments. In order to allow for a comparability with prior year, data for
2002 have been reclassified accordingly; prior year data have not been reclassified. </FONT></P></TD>
</TR>
</TABLE>










<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth Eni&#146;s sales of main petrochemical products by volume for the
periods indicated. </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">
<B>Year ended December 31,</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD colspan=5 ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1999</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD colspan=5 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>(thousands of metric tons)</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Basic petrochemicals </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,029&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,002&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,928&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,894&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,704&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Styrene and elastomers </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,241&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,253&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,138&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,151&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,171&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polyethylene </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">115&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">107&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,448&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,391&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polyurethane </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">236&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">253&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">83&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Total sales </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,622&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,616&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,233&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,493&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,266&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
</TABLE>


<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>___________________ </FONT></DIV>
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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1) </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>As
compared to 2002, in 2003 Eni's activities have been grouped differently:  Syndial
(former EniChem) was included in the "Other activities" segment,  which includes all Eni
companies not included in specific segments. In order to allow for a comparability with prior year, data for
2002 have been reclassified accordingly; prior year data have not been reclassified. </FONT></P></TD>
</TR>
</TABLE>





<p ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Basic petrochemicals </FONT></p>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003 sales of basic
petrochemicals (2,704,000 tonnes) decreased by 190,000 tonnes with respect to 2002,
down 6.6%, due essentially to the decline registered in olefins (down 14%, with ethylene
down 21% and butadiene down 23%) due to a decline in the demand for downstream products,
in particular polyethylene and to lower product availability in particular at the Gela
cracker, due to the lack of refinery products registered in the second half of the year,
at Dunkerque, due to a standstill related to disputes with workers&#146; unions, and at
Priolo, due to a longer than expected maintenance standstill. Aromatics sales decreased by
7.6% (in particular benzene was down 13.4%). These declines were offset in part by higher
intermediate sales (up 17.2%) due to new markets in Asia and the Far East which allowed to
absorb higher production available.<BR>

Basic petrochemical production
(4,013,000 tonnes) declined by 291,000 tonnes over 2002 (down 6.8%) due to declines in
olefins (down 8.5%, in particular ethylene) and aromatics (down 7.6%). Production of
intermediates increased by 4.4%. </FONT></p>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Styrene and elastomers </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 styrene and elastomer sales (1,171,000 tonnes) increased by 20,000 tonnes with
respect to 2002, up 1.7%. The increase in styrenes (up 2%) was due to increased
polystyrene sales (in particular expandable polystyrene was up 9%) pushed by increasing
consumption especially in Eastern Europe in the segment of thermal insulation and
industrial packaging. ABS sales declined (down 4%) due to competitive pressures and weak
demand. The increase in elastomers (up 1.5%) was due to increased sales of SBR rubber (up
10%) and polybutadiene rubber (up 4%) pushed by the recovery in the tire manufacture
segment. Polychloroprene rubber sales declined (down 6%), due to a weak dollar and over
capacity in Asia. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production
(1,635,000 tonnes) increased by 97,000 tonnes over 2002, up 6.3%. Styrenes increased by
7.2%, in particular styrol, while elastomers increased by 4.2% with increases between 8
and 11% in particular in SBR and polybutadiene rubbers, as compared to a 10% decline in
polychloroprene rubber. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Polyethylene</I> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 sales of polyethylene (1,391,000 tonnes) decreased by 57,000 tonnes with
respect to 2002, down 3.9%, due to a decline in demand that affected all products
(declining between 2 and 8%) with the exception of EVA (up 22%) and to lower products
availability especially at the end of the year due to the maintenance standstill of the
Priolo cracker and the standstill of the cracker and polyethylene plant at Gela related to
the standstill of the nearby refinery. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production
(1,259,000 tonnes) decreased by 15,000 tonnes, down 1.2%. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left" FSL="Default" -->

<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
expenditure</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Item 5 &#150; Liquidity and capital resources &#150; Capital expenditure by
segment&#148;. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold" FSL="Default" -->
<a name="a21"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Oilfield Services
Construction and Engineering </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through
Saipem SpA, a 43% owned subsidiary, Eni engages in the laying of underwater pipelines and
installation of offshore platforms and FPSO Systems, in onshore construction (pipelaying
and plant erection) and onshore and offshore drilling. Through Snamprogetti SpA, a 100%
owned subsidiary, Eni is an international operator in engineering and contracting
services, in particular for the oil and gas, chemical and petrochemical industries. In
2003, Eni&#146;s <I>oilfield services and construction</I> activities were positively
affected by the upward trend of oil companies&#146; demand for services which concerned
all its businesses. In the Offshore construction area, the more dynamic businesses were
large diameter pipes in Asia and the field development business in the deep waters of West
Africa, where a strong growth in the demand for underwater development and laying of small
diameter pipes was registered. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, Eni&#146;s <I>oilfield services and construction</I> activities were positively
affected by the upward trend of oil companies&#146; demand for services which concerned
all its businesses. In the Offshore construction area, the more dynamic businesses were
large diameter pipes in Asia and the field development business in the deep waters of West
Africa, where a strong growth in the demand for underwater development and laying of small
diameter pipes was registered. In Onshore construction, activities in the upstream
business were particularly dynamic in Kazakhstan, the Middle East and Africa. In the
midstream business the markets with the most promising growth prospects were Central
Africa, Russia and the Far East due to the need to develop new infrastructure for the
transmission of hydrocarbons to consumer countries. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
<I>engineering and contracting</I> demand improved in particular in the area of upstream
plants for hydrocarbon treatment. In this business the Middle East was the fastest growing
area. Good market opportunities were registered also in Latin America, Africa, Russia and
Caucasus countries (Kazakhstan and Azerbaijan) due to an increase in production capacity.
Also the natural gas business was growing. Some plants for the liquefaction of natural gas
are under construction in the Middle East, Africa, Asia, Latin America and Australia,
while regasification terminals are under construction in Europe. In the refining business,
capital expenditure was driven by the need to curb plant emissions, to improve safety and
to respect more stringent quality specifications for fuels (especially as concerns sulphur
content). In the area of chemicals (covering over 60% of capital expenditure of the
petrochemical market) domestic demand in developing countries (China and India) was
increasing as well as capacity for cracking and ethylene in the areas were raw materials
cost less (Middle East). Capital expenditure in nitrous fertilizer plants (ammonia-urea)
was at a standstill in the expectation of the coming onstream of new production capacity
in the Middle East. This will lead to an adjustment of markets for these products. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 orders acquired (euro 5,876 million) decreased by euro 1,976 million over 2002.
Eni&#146;s order backlog was euro 9,405 million at December 31, 2003, with a decrease of
euro 660 million. </FONT></P>




<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Orders acquired and order backlog</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Orders acquired</B> </FONT> </TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,716&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,852&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,876&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,186&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,454&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,298&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Engineering </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,530&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,398&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,578&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Originated by Eni companies </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>11&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">To be carried out outside Italy </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>91&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Order backlog, as of December 31,</B> </FONT> </TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,937&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,065&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,405&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,853&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,158&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,225&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Engineering </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,084&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,907&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,180&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Originated by Eni companies </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">To be carried out outside Italy </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">78&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>81&nbsp;</B> </FONT> </TD></TR>
</TABLE>





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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oilfield
Services and Construction</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Through
Saipem (a listed company of which Eni currently owns approximately 43% of the ordinary
shares, with the balance publicly held), Eni engages in the laying of underwater pipelines
and the installation of offshore platforms and FPSO Systems, onshore construction
(pipelaying and plant erection) and onshore and offshore drilling. Saipem owns a
world-class fleet of technologically advanced vessels. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to consolidate its competitive positioning in the segment of large EPIC/EPC
projects for the development of offshore and deep offshore hydrocarbon fields by
integrating its technological and operational skills with engineering and project
management capabilities acquired on the market (among which Bouygues Offshore, Moss
Maritime, Petromarine, Idpe). Success in these projects requires an increase in the
ability to evaluate risks, to be a global contractor coordinating project units and
central management. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to increase its operating and technical know-how in the gas-to-market segment,
which includes projects for the construction of offshore and onshore natural gas
transmission systems, natural gas regasification and conversion plants. In particular Eni
will focus on LNG floating production systems that integrate production, storage,
transport and regasification of natural gas. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Offshore
construction remains the key business with the highest expected growth rates. Eni intends
to develop in the area of leased FPSO for which West Africa is the region with the most
interesting opportunities. In the field of drilling Eni intends to focus on strategic
geographical areas adopting long-term commercial policies that ensure high use of
facilities also in case of economic downturn. In the onshore construction sector, Eni will
focus on complex projects for the construction of hydrocarbon treatment plants and long
distance natural gas transmission infrastructure. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to intensify efficiency improvements in all its activities, by reducing supply and
execution costs while maintaining a flexible structure in order to dampen the impact of
possible negative cycles. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Among
the most significant orders won in 2003 are: </FONT></P>





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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In the
Offshore construction area: in West Africa: (i) a contract for the construction of
facilities in the Kizomba B Project related to the development of the Kissanje and
Dikanza fields in the deep offshore of Angola (Block 15). The contract awarded by Exxon
Exploration Angola includes engineering, procurement, construction and installation of
pipes and SURF facilities (Subsea Umbilical Risers Flowlines) connecting the underwater
wells to an FPSO vessel developing the fields at water depths of approximately 1,100
meters. In addition Eni will carry out the installation of mooring systems for the FPSO
unit. An FDS (Field Development Ship) will perform the installation between the third
quarter of 2004 and the third quarter of 2005; (ii) in a consortium with other operators
a contract for the extension of the Amenam field facilities, 60 kilometers offshore Bonny
for Elf Petroleum Nigeria Ltd. The contractual scope of work comprises engineering,
procurement, construction and installation of a platform and a mooring system. The
Castoro 8 vessel will carry out the installation phase between late 2004 and the end of
2005; (iii) a contract for the Nigerian National Petroleum Corporation/Mobil Producing
Nigeria Unlimited joint venture, for the East Area Additional Oil Recovery Project which
includes engineering, procurement, construction and installation of three platforms for a
total weight of approximately 3,500 tonnes and the laying of approximately 160 kilometers
of underwater pipelines. The offshore installation phase will be carried out mainly by
the Castoro 8 vessel between the end of 2004 and the first half of 2005; (iv) in a
consortium with other operators a turnkey contract for the construction of the topsides
of an FPSO unit for the Dalia oil field in the deep offshore of Angola for TotalFinaElf E&amp;P
Angola. The contract includes engineering, procurement, fabrication and assembling of the
production system. The contract is expected to be completed by the third quarter of 2006;
in Russia: a contract including engineering, procurement, construction and
installation of a system of pipes that will link the Lunskoye and Piltun-Astokhskoye
platforms to the Russian island of Sakhalin for Sakhalin Energy Investment. The works
will be carried out by the Castoro 2 and Semac 1 vessels in the third quarter of 2004 and
of 2005; in the Caspian Sea: a contract for AIOC (Azerbaijan International
Operating Company) for the transport and installation of the East Azeri and West Azeri
platforms and of a pre-drilling template (a support structure for a drilling platform)
within Phase 2 of the development of the Azeri-Chirag-Gunashili field, located in the
Azeri waters of the Caspian Sea. These works will integrate those performed in Phase 1
and are due to be completed by the summer of 2006; in Australia: an EPIC contract
for Conoco Phillips Pipeline Australia Pty Li for installation engineering, transport,
installation and relevant activities for the Bayu Undan-Darwin Pipeline. </FONT> </DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the
Onshore construction area in Russia: a turnkey contract awarded to a consortium
led by Saipem and including Starstroi, LUKoil-Neftegazstroy and Amec Spie Capag for the
construction of an onshore oil and gas pipeline system on the Russian island of Sakhalin
in the Ohostk Sea facing eastern Siberia for Sakhalin Energy Investment. The contract
covers engineering procurement and construction (EPC) of an 800-kilometer long twin
pipeline system connecting the Piltun-Astokhskoye and Lunskoye offshore fields, located
north-west of Sakhalin to a gas and oil export terminal located in the southern part of
the island. The completion of activities is expected in the second half of 2006.  </FONT></DIV></UL>



<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
April 2003, after obtaining authorizations from the Indian Authorities, Eni finalized the
purchase of IDPE (International Development Process and Engineering), an Indian
engineering company located in Chennai, in the Tamil Nadu state, for a total of
approximately dollar 3 million. IDPE, a company employing 210 engineers, provides a
variety of engineering services for oil and gas projects, namely basic and detailed
engineering, procurement services, construction supervision and commissioning assistance.
This acquisition allows Saipem to further strengthen its engineering capabilities. </FONT></P>

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<p ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Business areas</I> </FONT> </p>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Offshore Construction </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to consolidate its competitive positioning in the segment of large EPIC/EPC
projects for the development of offshore and deep offshore hydrocarbon fields by
integrating its technological and operational skills with engineering and project
management capabilities acquired on the market (among which Bouygues Offshore, Moss
Maritime, Petromarine, Idpe). The demand for these services is expected to increase, given
the objective constraints to the expansion of hydrocarbon reserves in conventional
environments. The development of deep offshore fields in the future will be performed more
and more frequently by means of floating hydrocarbon production systems, among which FPSOs
are the most important due to their storage capacity which allows to develop fields remote
from transmission infrastructure and to their versatility which allows to relocate vessels
on nearby fields thus expanding their useful life. On the other hand the demand for fixed
platforms for the development of offshore fields is slowly declining. Eni intends to
increase its know-how in both floating oil production and storage systems and in LNG
floating production systems that integrate production, storage, transport and
regasification of natural gas. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in the segment for the design, procurement and installation of fixed platforms,
in particular in the segment of ultra heavy lifting, thanks to the technical features of
its vessels. It is also engaged in the laying of subsea pipelines and large diameter
transmission infrastructure both in conventional and deep offshore. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Its
offshore construction fleet is made up of 25 vessels and 45 robotized vehicles able to
perform advanced subsea operations. Among its major vessels are: (i) Saipem 7000,
semi-submersible vessel with dynamic positioning system, with 14,000 tonnes of lift
capacity (the highest in the world), capable to lay pipelines in ultra-deep waters using
the J-lay technique to the maximum depth of 3,000 meters. This vessel has been used to lay
the Blue Stream pipeline in the waters of the Black Sea at the record depth of 2,150
meters; (ii) the Castoro 6 semi-submersible vessel, capable of laying pipes in waters up
to 1,000 meters deep; (iii) the Saipem 3000 multifunction vessel for the development of
hydrocarbon fields, derived from the transformation of the Maxita, provided with a crane
capable of lifting over 2,000 tonnes, it is capable of laying flexible and umbilical lines
and mooring systems in deep waters with the &#147;reel&#148;, &#147;J&#148; and
&#147;S&#148; laying techniques; (iv) the Semac semi-submersible vessel used for large
diameter underwater pipe laying; (v) the Saibos FDS for the development of underwater
fields in dynamic positioning, provided with cranes lifting up to 600 tonnes and a system
for vertical pipe laying to a depth of 2,000 meters. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Offshore Drilling </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
provides offshore drilling services to oil companies all over the world and holds relevant
market shares in key areas such as West Africa, the Middle East, North Africa and South
America (Peru). Its offshore drilling fleet consists of 10 advanced vessels properly
equipped for its primary operations and some drilling plants installed on board of fixed
offshore platforms. The technical features of its vessels allow Eni to keep significant
market positions in the most complex areas of deep and ultra deep waters. One of its most
important offshore drilling vessels is the Saipem 10000, designed to explore and develop
hydrocarbon reservoirs down to 10,000 meters operating in excess of 3,000 meters of water
depth in full dynamic positioning. The ship has a storage capacity of 140 KBBL and can
maintain a steady operating position without anchor moorings by means of 6 computerized
azimuth thrusters, which offset and correct the effect of wind, waves and current in real
time. Capital expenditure for building this ship amounted to about dollar 300 million. The
vessel will is operating, also on account of Eni, in ultra deep waters (over 1,000 meters)
in West Africa and Brazil. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
relevant vessels are Scarabeo 5 and 7, fourth generation semi-submersible rigs able to
operate at depths of 1,900 and 1,200 meters of water respectively, and to drill wells at
maximum depths of 8,000 meters. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Leased FPSO </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
provides to oil companies services for the development of offshore hydrocarbon fields by
leasing its fleet of FPSO vessels. The leasing of an FPSO represents an alternative to
direct expenditure for oil companies. West Africa is the market with the highest expected
growth rates due to the number of development projects announced or started-up by oil
companies. Eni&#146;s main vessels are: (i) FPSO Firenze, which, after its conversion into
a floating production and storage vessel, has been installed in Eni&#146;s Aquila field,
in the Adriatic Sea, and operates at a depth of 850 meters; (ii) FPSO Jamestown, also
converted to a floating production and storage vessel, that was installed in the oil
fields of Okono and Okpoho operated by Eni with a 100% interest in the deep offshore of
Nigeria; (iii) FPSO Mystras, which will substitute the Jamestown in the mentioned fields. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Onshore Construction </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
operates in the construction of hydrocarbon treatment plants (separation, stabilization,
collection of liquids and treatment of natural gas) and in the installation of large
onshore transmission systems (pipelines, pumping and compression stations, terminals). Its
main operation areas in the production/transmission area (upstream/midstream) are Central
Asia, Africa and the Middle East. Eni intends to consolidate its competitive positioning
in this segment by exploiting in particular the opportunities provided by frontier areas,
characterized by the lack of infrastructure, where it can leverage on its ability to
operate in difficult areas and to manage complex projects. Eni is also capable of
providing onshore services complementary to offshore operations, which represents a
competitive advantage for the development of projects in areas such as the Caspian Sea. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Onshore Drilling </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
operates in this area as main contractor for the major international oil companies. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Onshore
drilling is conducted through 47 facilities located in Italy, Saudi Arabia, North Africa,
Nigeria, Kazakhstan, Venezuela and Russia. Some of these facilities can drill to
10,000-meter depths in high pressure and high temperature environments. Eni intends to
focus its activities in areas where it has been present for a long time and to search
opportunities in areas with proved development prospects such as Central Asia, the Middle
East and Russia. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
onshore drilling Eni developed extremely advanced technologies with a high degree of
automation, which allow it to exploit the opportunities provided by the emergence of new
logistically demanding remote areas lacking infrastructure that require the ability to
operate in extreme environmental conditions. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>LNG </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
operates in the LNG market following its purchase of Bouygues Offshore which contributed
its competence in the area of liquefaction (in particular tanks) and regasification,
complementary to the onshore and offshore transmission of natural gas. The markets
offering the highest potential are the United States and Europe. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Engineering</B></I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni,
through Snamprogetti, is engaged in engineering and contracting, in the area of plants for
hydrocarbon production, refining, treatment and enhancement of natural gas, fertilizers
and petrochemicals, pipeline transport systems, electricity generation and infrastructure.
The services offered cover the whole cycle of investments: consulting, feasibility
studies, project financing assistance, basic and executive engineering, project
management, procurement, supervision and direction of operations, testing and first
operation of plant, personnel training. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
over forty years of activity, Eni has operated in more than 100 countries, building 70
industrial grassroot complexes, over 1,300 plants (refineries, chemical and petrochemical
plants, infrastructure, offshore rigs, marine terminals) and engineering 66,000 kilometers
of onshore (for 45,000 kilometers of these it also carried out construction works) and
12,000 kilometers of offshore pipelines, including deep waters and hostile environments. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to consolidate its competitive positioning in the market segment of turn key
complex projects requiring a wide and integrated range of services, flexible organization
and a continuous development of new technologies. It will therefore stress its role of
global contractor based on its distinctive operating skills, the level of services
provided and advanced proprietary technologies. It will focus its activity on market
segments characterized by high opportunities deriving from expected growth rates such as
hydrocarbon production and transmission as well as upgrading of natural gas (treatment,
conversion and liquefaction) and of heavy crudes. Projects will be selected in such a way
as to guarantee a good balance of profitability and risk profiles. Eni intends to pursue a
balance between turn-key contracts and special services (such as conceptual, basic, FEED
and PMC). It will also intensify actions for improving efficiency and operating
flexibility also through the development of low cost engineering centers, the
simplification of corporate structure and the hiring of highly qualified resources. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Among
the most significant orders won in 2003 are: </FONT></P>



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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">in the Middle
East: (i) a turnkey contract for the upgrade of the oil production plants of the
Bu-Hasa field, 200 kilometers south west of Abu Dhabi (UAE) for ADCO. The project
provides for the construction of a GOSP plant (oil, gas and water separation) with a
total capacity of 730 KBBL/d including the installation of 4 three-phase separators for
120 KBBL/d, a reinjection system for 150 million cubic meters/day and 120 KBBL/d of
water. The plant, expected to be completed in late 2006, is part of the program for
increasing production capacity of the Emirate up to 3 mmBBL/d; (ii) in joint venture with
the Japanese companies Chiyoda and Mitsui &amp; Co Ltd, a contract for the development of
the Ras Laffan project &#150; al Khaleej Gas Project Phase 1 &#150; in Qatar for Exxon
Mobil. The project aims at recovering LPG and natural gasoline and includes a complex for
the separation, recovery and treatment of natural gas with a capacity of 21 million cubic
meters/day. The plant will be completed before the end of 2005 and is part of the program
of natural gas production from the enormous offshore natural gas reserves of Qatar; (iii)
for Saudi Aramco, a turnkey contract for the upgrading of the Yanbu refinery in Saudi
Arabia. The project provides for the construction of catalytic reforming and
isomerization plants for the manufacture of lead free gasoline, with a production
capacity of 40,000 and 150 KBBL/d respectively. The plants are expected to be completed
at the end of 2005 and will allow Saudi Aramco to produce fuels in line with the
Government plan for improving air quality; </FONT> </DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">in Italy:
a gasification complex for Eni&#146;s refinery at Sannazzaro de&#146;Burgondi for the
conversion of tar (heavy residue from visbreaker) into syngas, which will feed Eni&#146;s
250 megawatt power station at Ferrera Erbognone (see Gas &amp; Power &#151; Electricity
Generation, above). Hydrogen also will be recovered and used for upgrading refinery
products; </FONT> </DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>in North
Africa: an EPC turnkey contract for the construction of a plant for the treatment of
gas and the stabilisation of condensates from the offshore Bahr Essalam field at
Mellitah, on the Libyan coast for AgipGas BV. The plant, which will have three trains
with a total capacity of 6.6 billion cubic meters/year, will include sweetening,
dehydration, SRU (sulphur recovery unit) and fractioning of LNG, storage and utilities.
This plant and its offsite facilities are integrated with the gas treatment units related
to the production of the onshore Wafa field.  </FONT></DIV></UL>





<p ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Business areas</I> </FONT> </p>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Plants </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oil
&amp; Gas</I>. Eni is engaged in the segment of plants for hydrocarbon production, natural
gas treatment and upgrading, in particular recovery and fractioning of natural gas liquids
(NGL) and natural gas liquefaction. Based on the capital expenditure plans announced by
oil companies, Eni expects a strong growth in the demand for services from the upstream
industry. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Refining</I>.
          Eni is engaged in the segment of engineering for primary distillation,
          reforming, fluid catalytic cracking (FCC) plants and also in the segment of
          hydroconversion of residues and heavy distillates plants. Eni is developing a
          new strategically relevant technology called EST (Eni Slurry Technology) aimed
          at meeting the growing demand for upgrading heavy crudes and converting and
          using refining residues (See below). Eni is also present in the market for the
          design and construction of plants for electricity generation in combined cycle
          from refining residues (IGCC &#151; Integrated Gasification Combined Cycle). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Chemical
Complex</I>. Eni is engaged in the area of plants for the manufacture of synthetic gases
(syngas, hydrogen and methanol) and gas-to-chemicals (ethylene and ethane derivatives) and
holds a leading position in the design and construction of plants for the production of
nitrogen-based fertilizers and oxygenated additives for gasoline, based on proprietary
technologies. Eni intends to consolidate its competitive position through the continuous
improvement in technologies and know-how in natural gas upgrading. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Energy
and the Environment</I>. Eni is active in the design and construction of combined cycle
power stations. In 2003 combined cycle units were started-up for a total capacity of 1,200
megawatts at EniPower&#146;s Ravenna and Ferrera Erbognone power stations. In the field of
waste disposal Eni built 10 facilities for the incineration of industrial, noxious and
solid urban waste. In particular, Eni holds a new proprietary technology for the total
abatement of noxious elements present in fumes from combustion. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Field upstream facilities and pipelines </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is engaged in the segment of design and construction of pipelines for the transmission of
hydrocarbons, for collection networks and upstream plants (construction of primary
separation plants, gas and water injection systems, compression and pumping stations), the
demand for which is expected to grow. Eni has new advanced technologies for the
construction of high pressure pipelines in deep waters for long distance transmission of
large volumes of natural gas and intends to strengthen its competitive positioning in this
area by leveraging its know-how and expertise. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Infrastructure </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is active in the field of design and construction of great infrastructure in Italy. The
Italian market for great infrastructure shows interesting prospects after the approval of
a 10-year plan for the construction of large infrastructure by the Italian Government. The
types of works, their size, the introduction of simpler and faster authorization
procedures, the modes of implementation of projects based on their critical variables
(time, cost, quality) and the acknowledgement of the role of general contractors are the
elements on which Eni bases its efforts to win orders in this area. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
1991, Eni&#146;s Oilfield Services and Engineering segment, through its interest in Cepav
Uno and Cepav Due consortia, signed two conventions with TAV SpA (&#147;TAV&#148;) to
participate in the construction of the high speed railway from Milan to Bologna and from
Milan to Verona. Eni holds a majority stake in both Cepav Uno (Eni&#146;s interest
50.36%), in charge of building the track from Milan to Bologna (currently under
construction) and Cepav Due (Eni&#146;s interest 52%), in charge of building the track
from Milan to Verona (for which arbitration is under way against TAV due to the withdrawal
of the concession previously awarded to TAV itself from Ferrovie dello Stato). Within the
project for the construction of the tracks for high speed/high capacity trains from Milan
to Bologna an addendum to the contract between Cepav Uno (in which Eni holds a 50.36%
interest) and TAV SpA was signed in June. Major changes concern the continuation of works,
the division of works into five functional stages that are expected to be completed
between the spring of 2006 and late 2008, a lump sum payment related to the new 30 changes
and the payment of further charges to the consortium. Works completed at the end of 2003
correspond to 40% of the total with an aggregate value of production of euro 1,912
million (of which euro 842 million was expended in 2003). </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
expenditure</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Item 5 &#150; Liquidity and capital resources &#150; Capital expenditure by
segment&#148;. </FONT></P>

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<a name="a22"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other Activities </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
SpA engages in strategic planning, human resources management, finance, administration,
legal affairs, international affairs and corporate research and development functions for
the Company. Through Enifin SpA, Societa Finanziamenti Idrocarburi-Sofid SpA and Eni
International BV, Eni carries out lending, factoring, leasing and insurance activities,
principally on an intercompany basis. Eni also engages in information technology,
communications, technology research and other activities. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Starting
from January 2003 Eni&#146;s non-core activities have been reorganized as follows: </FONT></P>


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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Syndial
(former EniChem) was included in the &#147;Other Activities&#148; segment, which includes
all Eni companies not included in specific segments (such as, among others, EniData,
Sieco, Tecnomare, EniTecnologie, Eni Corporate University, AGI);  </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the new
&#147;Corporate and financial companies&#148; segment was created, which includes Eni
Corporate, Eni Servizi Amministrativi and the financial companies formerly included in
the &#147;Other Activities&#148; segment.  </FONT></DIV></UL>



<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
does not consider Eni&#146;s activities in these areas to be material to its overall
operations. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Seasonality </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
results of operations reflect the seasonality in demand for natural gas and certain
refined products used in residential space heating, the demand for which is typically
highest in the first quarter of the year, which includes the coldest months, and lowest in
the third quarter, which includes the warmest months. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Research and Development </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
promotes technological excellence, based on the exchange of experience, expertise and
know-how, as essential factors in competition and economic and industrial sustainability. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni consolidated the new model of technological innovation that was outlined in 2002
with the aim of supporting growth and continuing expansion. This entails the integration
of R&amp;D skills with industrial applications, focusing innovation efforts on strategic
processes capable of generating long-term competitive advantages and advanced performance
systems. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
continued the reorganization of its R&amp;D structures by proceeding with the merger of
Eurosolare SpA, a company operating in the area of photovoltaic technologies, into
EniTecnologie SpA. A similar operation was started with the R&amp;D department of the
Exploration &amp; Production division. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
also continued the implementation of its human resources plan, aimed at adjusting
available resources and capabilities with the requirements of projects and businesses. An
activity of optimization of management processes for technological innovation was started. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, Eni invested euro 238 million in research and development (euro 175 million and 203
million in 2002 and 2001, respectively). At December 31, 2003, approximately 1,400 persons
were involved in research and development activities (1,390 and 1,500 as of December 31,
2002 and 2001, respectively). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2002 Eni reviewed the role of research and development in the light of the following
guidelines: (i) to increase resources devoted to upstream issues; (ii) to allocate more
resources to the development of prototypes; (iii) to support qualified laboratory research
in order to direct it to long-term radical innovation. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with these guidelines, the major turning points achieved have been: (i) the
implementation of a new model of innovation which integrates activities aimed at
incremental improvement managed by business units with the long-term innovative projects
managed by Eni corporate functions by means of a coordination center and the allocation of
costs directly to corporate functions for the most innovative projects; (ii) a
reorganization of R&amp;D structures aimed at integrating all homogeneous skills and
knowledge centers, including the laboratories of the Refining &amp; Marketing division and
of Snamprogetti. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is aware of the key role innovative technologies play in the future development of the
hydrocarbon industry. It therefore intends to integrate R&amp;D expertise and its
industrial application, focusing on innovative strategic projects capable of creating
competitive advantages. Research projects are going to be selected according to a strict
evaluation of their return; ongoing projects are going to be monitored in light of the
maximization of the value of Eni&#146;s project portfolio. In the next four years Eni
intends to significantly increase the resources it deploys in R&amp;D and will focus on
lines that can respond to expected market trends in the long to medium term; and in
particular on: (i) reduction of mineral risk; (ii) enhanced recovery of hydrocarbons;
(iii) optimal management of reserves with high acid gas content (e.g. sulphur); (iv)
upgrading of heavy and ultra heavy crudes; (v) high pressure transmission of natural gas;
(vi) conversion of natural gas to liquids in order to give value to associated gas or
natural gas produced in remote locations; (vii) manufacture of high quality fuels and
alternative fuels with better engine and environmental performance; (viii) hydrogen as
energy vector. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
intends to search global alliances in order to participate in research projects that have
a longer horizon than the four-year plan. Below is a brief description of the main
techniques applied or under development. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Hydrocarbon exploration
and production</I> </FONT> </H1>



<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Innovative
technologies for subsoil survey. </I>In
order to prepare a geological model of fields as near as possible to reality and therefore
to reduce exploration risks and uncertainties related to fields, Eni developed significant
industrial applications of highly innovative technologies. In particular, the so called
CRS Stack (Common Reflection Surface Stack) is able to process seismic imaging and to
obtain information on the &#147;velocity model&#148; with significantly higher results
than conventional technologies. This allowed to improve the final seismic image of the
Elephant field in Libya. Significant developments derived also from the development and/or
application of advanced technologies for modelling and monitoring fields: innovative
technologies for studying fractured fields, cross-well seismics, 4D time lapse seismics to
monitor the behaviour of producing fields over time. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Drilling
of "avanced wells". </I>Eni
developed and applied at industrial level a series of technologies that allow Eni to drill
highly complex wells with greater operating efficiency. &#147;Lean profile&#148; drilling,
developed and patented by Eni, is applied in deep vertical and deviated wells especially
in high pressure and high temperature environments allowing a reduction in time and costs
as well as the final environmental impact as it reduces the volume of rock handled. Wells
obtained with this technique are high quality and low risk. It basically consists in
reducing to a minimum the tolerance between the diameter of wells and their lining columns
while keeping the production casing unchanged. The verticality and direction of the hole
are guaranteed by innovative tools such as &#147;Vertitrack&#148; (formerly SDD,
straight-hole drilling device) and &#147;Autotrack&#148;, developed and applied by Eni in
cooperation with Baker-Hughes. Lean drilling was successfully applied both in Italy (Val
d&#146;Agri, Trecate) and outside Italy (Tunisia, Algeria, Egypt and Russia) and entailed
significant benefits such as higher safety and higher savings of costs and time. The ultra
deep HP/HT well recently drilled in Russia represents a world record for this technology
with its 6,826 meters of total depth and the use of a 13&quot;3/8 casing at 4,016 meters
lowered in a 14&quot;3/4 hole. The application in Val d&#146;Agri is a record lean
drilling in highly deviated wells (a 13&quot;3/8 casing in a 14&quot;3/4 hole with
inclination up to 60&deg;). </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
deep water drilling Eni&#146;s innovative proprietary technology is the dual casing
running which allows for simultaneous drilling of the first two superficial holes of a
deep water well, the simultaneous lowering of the superficial casings and the cementing.
The application of this technology allows for a significant reduction in time and costs
and a perfect verticality of the two casings and the well head. </FONT></P>





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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Innovative
technologies for the treatment of liquids. </I>In
the field of transmission and treatment of hydrocarbons Eni developed and applied
innovative technologies with particular attention to multi-phase fluids (water, oil and/or
gas) in order to optimize production and reduce its environmental impact. In
particular, Eni successfully tested at its Cavone oil center a pilot plant for the removal
of oil from layer waters which allows it to reduce the residual concentration of
hydrocarbons in water to less than 10 ppm, starting from an initial content of 1,000 ppm.
The system is based on the use of adsorbing polymers capable first to capture oil
particles and then to release them favoring their coalescence and making them easier to
separate. The system is currently being engineered in order to make it useable on
platforms. Another ongoing project aims at optimizing new design centrifugal systems for
the separation of water from oil and for the confirmation of innovative technologies for
removing soluble organic compounds. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also
in the field of multiphase pumping Eni is applying innovative technologies as an
alternative to traditional production systems in marginal fields, fields located in
frontier areas or difficult areas such as deep waters. The multiphase technology becomes
extremely useful, in terms of economic benefits, in offshore applications where the
possibility to transport production from the wells over long distances allows to transfer
processing activities on existing facilities and infrastructure, thus significantly
reducing technical costs for the development of fields. Infield applications of multiphase
pumping have been recently installed offshore and onshore in the United Kingdom and
Tunisia with other partners in order to obtain a higher recovery of hydrocarbons. </FONT></P>





<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Management
of hydrogen sulphide and sulphur. </I>In
2003 Eni started an important R&amp;D project for the optimal management of reserves with
high content of hydrogen sulphide and sulphur. The project aimed at developing innovative
technologies and/or advanced processes able to manage the disposal and possible
exploitation of high amounts of acid gas and sulphur that are produced with hydrocarbons,
while respecting safety and the environment. In particular the study concerns innovative
processes for the separation of hydrogen sulphide and its conversion into plain sulphur
and the storage and/or use of this sulphur. At the same time, other innovative processes
are being studied for the reinjection of hydrogen sulphide into the field and its
monitoring. </FONT> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Eni Slurry Technology</I> </FONT> </H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
Slurry Technology (EST) is a strategically relevant technique that is being developed for
meeting the growing need for the upgrading of heavy crudes and non conventional crudes
(asphalt sands) and for the transformation and enhancement of refining residues. EST is a
hydrogenating treatment technique which acts on heavy residues from extra-heavy crudes
with high content of polluting substances (sulphur, metals, nitrogen compounds and with
high Conradson Carbon Residue &#151; CCR). The strategic interest of upgrading heavy
crudes derives from the need felt by the oil industry: (i) to enhance relevant reserves of
heavy crudes thus increasing proved reserves without recourse to new exploration
expenditure; (ii) to requalify the productive structure of most refineries by turning
refining residues into valuable products without building additional capacity; (iii) to
reduce the environmental impact of refining by eliminating fuel oil which is turned into
valuable products and indirectly contributing to the increase in natural gas demand and to
the reduction of carbon dioxide emissions. At present this technology is characterized by:
(i) feedstock flexibility; (ii) high quality of finished products; (iii) total conversion
of processing residues; (iv) no production of fuel oil and coke. Within the development
and the pre-marketing phases, a Commercial Demonstration Plant (CDP) with a 1.2 KBBL/d
capacity is nearing completion at Eni&#146;s Taranto refinery and is expected to start
operations at the end of 2004. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Transmission: TAP Project</I> </FONT> </H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
TAP Project (High Pressure Transmission) aims at developing reliable technologies for
making the transmission via pipeline of relevant amounts of natural gas from production
areas to the most promising markets economically viable (gas-to-market). This project was
started in May 2003 and is expected to last for three years. Activity is aimed at
developing the most advanced long distance, high capacity, high pressure and high grade
solutions with relevant targets related to: (i) distances over 3,000 kilometers; (ii)
natural gas volumes to be transported of about 20-30 billion cubic meters/year; (iii)
pressure equal to or higher than 15 Mpa and (iv) use of high and very high grade steel
(e.g. X100). The project phases are: (i) evaluation of the viability of alternative
solutions in frontier initiatives; (ii) technological upgrading within the Eni Group and
by participating in international R&amp;D projects; (iii) technical-economic evaluation of
transport along strategic routes and comparison with LNG solutions; (iv) construction of a
portion of a 10-kilometer long pipeline type DN 1200 in X80 steel along an Italian
transport route; (v) construction of a portion of pipe DN 1200 in X100 steel operated
under high pressure in a testing area in order to evaluate the various design,
construction and operation options over time. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Conversion of natural
gas into liquids</I> </FONT> </H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
Eni&#146;s Sannazzaro refinery a pilot plant for the conversion of syngas to a mixture of
paraffin hydrocarbons (wax) is operating. The aim of the project is to exploit the
enormous volumes of natural gas that are not extracted because too far from end markets
and of volumes of natural gas associated to oil for which the only option is reinjection
into wells, that could negatively affect liquid production. The conversion of gas allows
to manufacture of high quality refined products such as naphtha, kerosene and diesel fuel,
totally sulphur and aromatic free. This plant produces 20 BBL/d of wax by means of an
advanced technology (Fischer-Tropsch) studied in cooperation with the Institut
Fran&ccedil;ais du P&eacute;trole (IFP) and EniTecnologie (100% Eni). The project was
started in 1996 and allowed for the filing of 44 patents. Along with the completion of the
second test phase in the pilot plant (to be completed by the autumn of 2004), which will
consolidate the process book of the hydrocarbon synthesis section, the feasibility study
for the commercial developments of the project is underway. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
and IFP are also cooperating to the development of a specific hydrocracking process for
the conversion of wax into liquid hydrocarbons with maximization of yields of middle
distillates (diesel fuel and kerosene). </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Innovative fuels: Plus 98</I> </FONT> </H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
July 2003 on IP branded service stations, sales of Plus 98 started. This new high quality
gasoline with better performance in terms of efficiency than conventional gasoline has the
following major advantages: (i) an octane number (over 98) three points higher than
conventional gasoline, which allows a more regular burning, thus optimizing the process of
transformation of available energy into mechanical energy; (ii) easier vaporization, i.e.
the fuel&#146;s ability to turn from liquid into vapour, which allows Plus 98 to mix
faster with air and produce faster combustion, thus increasing the engine&#146;s response;
(iii) detergent power: Plus 98 contains a special additive that prevents the formation of
deposits in the engine feeding system, in particular in valves, allowing the engine to
maintain its performance over time. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
Plus 98 Eni confirms its constant attention for the quality of its fuels and the
optimization of engine performance and its protection. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Hydrogen and Syngas
System</I> </FONT> </H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
first phase of the Hydrogen and Syngas System research program was completed in 2003. The
project aimed at increasing the utilization rate and the environmental sustainability of
fossil energy sources and, based on the indications emerged, a new project was started for
the industrial development of a new kind of multi-fuel reforming based on catalytic
oxidation with low contact time (SCT-CPO) of various kinds of hydrocarbon feedstocks, in
particular low value and marginal feedstocks produced in refineries with high content of
polyaromatic and sulphur compounds. If this project is successful, it will be possible to
meet the demand for hydrogen required for the hydrotreatment units manufacturing clean
fuels at a reasonable cost. This technology will be tested in a pilot plant that will be
built at the Centro Ricerche Sud in Milazzo in the spring of 2005. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Technologies for the
development of hydrogen as energy vector</I> </FONT> </H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
interest in this field is aimed at the creation of a portfolio of technologies that may be
employed in the production of hydrogen as energy vector from various primary energy
sources, also in light of the reduction of emissions of greenhouse gases. Eni confirmed
its strategic partnership with Haldor Tops&oslash;e, in which it holds a 50% interest.
Haldor Tops&oslash;e is a Danish company operating in the provision of technologies and
the manufacture and sale of catalysts for the chemical, petrochemical and refining
industries and in the technologies for the manufacture of hydrogen and synthetic gas. It
owns production facilities in Denmark and the United States and operates worldwide
employing proprietary technologies, among which the one considered most advanced for
&#147;gas to liquids&#148; applications in natural gas reforming plants. Haldor
Tops&oslash;e is also active in the fuel cell business. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Insurance </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
constantly assesses its exposure for the Italian and foreign activities that are mainly
covered through the Oil Insurance Limited (&#147;OIL&#148;), a mutual insurance and
reinsurance company that provides to its members a broad coverage tailored to the specific
requirements of oil and energy companies. Eni makes use of a captive insurance company
that covers the risks and implements Eni&#146;s Worldwide Insurance Program re-insured with
high quality securities in order to integrate the terms and conditions of the OIL
coverage. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
insurance risk manager works in close contact with managers directly involved in core
business activities in order to evaluate potential risks and their financial impact on the
Group. This process allows to define a constant level of risk retention and, conversely,
the amount of risk to be transferred to the market. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
level of insurance maintained by Eni is generally appropriate for the risks of its
businesses. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Environmental Matters </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Environmental regulation</I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Together
with other companies in the industries in which it operates, Eni is subject to numerous
EU, national, regional and local environmental laws and regulations concerning its oil and
gas operations, products and other activities, including legislation that implements
international conventions or protocols. In particular, these laws and regulations require
the acquisition of a permit before drilling for hydrocarbons may commence, restrict the
types, quantities and concentration of various substances that can be released into the
environment in connection with exploration, drilling and production activities, limit or
prohibit drilling activities on certain protected areas, and impose criminal or civil
liabilities for pollution resulting from oil, natural gas, refining and petrochemical
operations. These laws and regulations may also restrict emissions and discharges to
surface and subsurface water resulting from the operation of natural gas processing
plants, petrochemicals plants, refineries, pipeline systems and other facilities that Eni
owns. In addition, Eni&#146;s operations are subject to laws and regulations relating to
the generation, handling, transportation, storage, disposal and treatment of waste
materials. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental
laws and regulations have a substantial impact on Eni&#146;s operations. Some risk of
environmental costs and liabilities is inherent in particular operations and products of
Eni, as it is with other companies engaged in similar businesses, and there can be no
assurance that material costs and liabilities will not be incurred. Although management,
considering the actions already taken, with the insurance policies to cover environmental
risks and the provision for risks accrued, does not currently expect any material adverse
effect upon Eni&#146;s consolidated financial statements as a result of its compliance
with such laws and regulations, there can be no assurance that there will not be a
material adverse impact on Eni&#146;s consolidated financial statements due to: (i) the
possibility of as yet unknown contamination; (ii) the results of the on-going surveys and
the other possible effects of statements required by Decree No. 471/1999 of the Ministry
of Environment concerning the remediation of contaminated sites; (iii) the possible effect
of future environmental legislation and rules, like the Decree No. 367 of the Ministry of
Environment, published on January 8, 2004, that introduces new quality standards for
aquatic environment and dangerous substances. This Decree modifies completely the actual
set of rules, because of the imposition of qualitative standards, that can be reached only
through considerable investments; (iv) the effect of possible technological changes
relating to future remediation; and (v) the possibility of litigation and the difficulty
of determining Eni&#146;s liability, if any, as against other potentially responsible
parties with respect to such litigation and the possible insurance recoveries. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management
of waste, toxic waste, packaging and packaging waste is regulated by Legislative Decree
No. 22 of February 5, 1997 which refers to three European Directives (91/156/CEE,
91/689/CEE and 94/62/CE) and provides incentives to clean technologies and recycling and
reuse of waste. This decree prohibits the uncontrolled disposal of waste underground and
in the water and obliges polluting entities to reclaim polluted areas. Whenever it is not
possible to identify one person or entity responsible for existing pollution, the owner of
the polluted area is expected to pay for its reclamation. This decree became operational
with decree No. 471/99 of the Ministry of the Environment, which also defined: (i) limits
for the contamination of soils and underground waters; (ii) general guidelines for
reclaiming and environmental recovery of polluted areas, and (iii) criteria for the
identification of polluted areas of national interest. For the storage of toxic waste, the
decree favors techniques avoiding transport of waste and their on-site treatment. Whoever
causes, wilfully or accidentally, pollution of an area or actual danger of pollution is
expected to react within 48 hours according to the procedure set by the decree. At present
Eni is not yet able to evaluate the possible future consequences deriving from the
completion of on-going surveys and other possible effects of the application of Decree No.
471/99 of the Ministry of Environment; however there can be no assurance there will not be
a material adverse impact on Eni&#146;s results of operations and financial position from
the application of that decree. Law 388/00 changed the regulations concerning the
reclamation of polluted sites, easing the discipline of crimes related to events prior to
Legislative Decree No. 22/97 and imposing the reclamation of sites where industrial
activity is ongoing. However, the reclamation is to be carried out provided that it does
not involve a significant disruption in operations; reclamation costs can be amortized in
ten years. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with European guidelines, the protection from water pollution was strengthened
with Legislative Decree No. 152/99 as completed by Decree No. 258/00 and by decree No.
367 of the Ministry of Environment. Decree No. 258/00 provides for an integrated protection
of water resources by extending control from each discharge place to all the effects of
accumulation and interactions of various discharges into one single water course and set
quality objectives to be reached within 2008. All discharges require preventive
authorization, to be renewed every four years, and must lie below the thresholds set by
Regions. To date Eni cannot evaluate the possible impact of the application of Decree No.
152/99 as completed by decree No. 367 of the Ministry of Environment. However, there can
be no assurance that there will not be a material adverse impact on Eni&#146;s operations
due to measures adopted by local authorities whenever the quality of a certain water
source does not comply with set standards due to the industrial activity of all plants
located above that water source. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Law
372/99 will gradually enter into force. This law, which is related to the European
Directive 96/61/CE (IPPC &#151; Integrated Pollution Prevention and Control), envisages
that industrial installations will apply for an integrated authorization concerning
emissions, wastes and water discharges. Before April 2005 the competent authorities should
have completed the process of the IPPC authorization. Many of Eni&#146;s plants &#151;
refineries, chemical plants, power stations &#151; will have to comply with this law. All
the Eni installations are getting ready to request and obtain the IPPC authorization,
which will have a 5 years duration, in general, and 8 years for installations registered
according to EMAS regulation. In order to secure the extended authorization, some Eni
installations have or are in the process of obtaining the EMAS registration. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of the year 2003, according to the IPPC Directive, the Member States had to communicate
their 2001 national values of emissions into the atmosphere, wastes produced and managed
and, finally, discharges into water of some compounds specified in the annexes of the
directive relative to EPER (European Pollutant Emission Register). The Directive applies
to several Eni plants, so the Eni divisions and/or companies which own these plants, have
reported their data to the authority in charge of preparing the Italian national
communication. </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>HSE activity</I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In order to more effectively
respond to and anticipate the increasing complexity of the international and national
environmental legislation, to better adapt to the international context where it operates
and to increase its effectiveness in the implementation of its Corporate HSE Guidelines,
during 2002 Eni created the HSE Corporate Department, with the following tasks: (i)
elaborating a plan consistent with Eni&#146;s policies and guidelines; (ii) defining a HSE
management system model, to be used as reference by all business units; (iii) responding
to the increasing challenges of sustainability by means of the design and the
implementation of a sustainable energy system. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The completion of the restructuring
of Eni by divisions entailed a review of the organization of the Health Safety Environment
(HSE) management with the aim of harmonizing systems and procedures. In keeping with its
established HSE guidelines, Eni set up a model management system which identifies the
basic requirements for a homogeneous HSE management of the various business areas,
independent of the kind of activities performed or the geopolitical context in which they
operate. The model is oriented to continuous improvement and is based on a management
cycle including planning, implementation, control and any corrective actions, the review
of established objectives and the definition of new ones. An HSE Evaluation System was
also set up which includes an audit protocol aimed at checking the existence,
completeness, functioning and homogeneity of management systems in the various business
areas and, in particular, their consistency with the corporation&#146;s management model. <BR>

In 2003 business units started
adjusting their management system to the corporate model. Meanwhile Eni&#146;s business
units continued to obtain certification of their management systems under the most
stringent international standards, in particular those units most exposed to HSE risks.
The total certifications (ISO 14000, OHSAS, EMAS, ISM, etc.) obtained in 2003 were 110, of
which 20 in the Exploration &amp; Production division, 21 in the Gas &amp; Power division,
30 in the Refining &amp; Marketing division, 15 in the Petrochemical segment, 11 in the
Oilfield Services and Engineering segment and 13 in the sector &#147;Other
activities&#148;. Business units continued to control compliance of operations with HSE
policies and procedures. In 2003, a total of 2,089 HSE and quality audits were performed
by internal and independent auditors. Training played a relevant role in the management of
safety and environmental issues, with a total of 281,539 hours of HSE training provided to
72,223 participants in 2003. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In 2003, Eni&#146;s estimated
operating and capital expenditures in health, safety and environment amounted to euro 926
million. Environmental expenditures amounted to euro 605 million, of which euro 62 million
related to air emissions, euro 86 million to water, euro 128 million to waste and euro 205
million to soil and environmental restoration. In addition to operating and capital
expenditures, Eni also creates provisions for future environmental remediation.
Expenditures against such provisions are normally incurred in subsequent periods and are
not included in environmental operating expenditure. Provisions for environmental
remediation are made when a clean-up is probable and the amount reasonably determinable.
Generally, their timing coincides with the commitment to a formal plan of action or, if
earlier, on divestment or closure of inactive sites. In addition, Eni makes provisions
against costs expected to be incurred with respect to the abandonment of
hydrocarbon-producing assets. In 2003, Eni accrued euro 184 million to the site
restoration and abandonment reserve. See &#147;Note 13 to the consolidated financial
statements &#150; Reserves for contingencies and other deferred non-current tax
liabilities&#148; for more details regarding environmental and site restoration and
abandonment reserves. </FONT> </P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In the area of health Eni employs
a system of constant monitoring, increasing the frequency of checks where risks are
higher. In 2003, a total of 101,231 medical check-ups and 335,619 lab tests were performed
in the whole Eni Group. With regard to Safety, in 2003 both injury rates showed a marked
improvement compared with the values of the previous year. In particular, the injury
frequency index (obtained by dividing the number of injuries with more than one day of
absence by millions of hours worked) was 3.71 and the severity rate (defined as the ratio
of work days lost through injury per thousand hours worked) was 0.09. </FONT> </P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Regarding environmental issues, in
2003 the key performance indicators either remained stable or were improved. Since 2002
Eni Refining &amp; Marketing division launched a new product: BluDiesel, a virtually
sulphur free diesel fuel which anticipates environmental regulations and ensures better
engine performance. This product is currently sold in 1,500 service stations with average
sales amounting to 20-25% of total gasoil sales and in some cases peaking at 50%. </FONT> </P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">To meet future environmental
obligations, Eni is engaged in a continuing program to develop effective measures for the
protection of the environment. This program includes research and capital expenditures
related to reducing sulphur levels in heavy fuel oils and diesel fuel, reducing benzene
and sulphur content in gasoline, improving the quality of emissions and effluents from
Eni&#146;s refineries and petrochemical plants, developing and installing monitoring
systems at Eni&#146;s facilities and developing environmental impact assessments for major
projects. </FONT> </P>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Further information on objectives
and environmental performances of Eni Group companies are included in Eni&#146;s 2003
Report on Health, Safety and the Environment. </FONT> </P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Implementation of the
Kyoto Protocol</I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
2002 the Kyoto Protocol has been ratified by the EU and also by Italy, with Law N.
120/2002. According to this law, Italy committed itself to reduce greenhouse gas emissions
by 6.5% in the period 2008-2012 as compared to 1990 values. Reductions can be achieved
both through internal measures and through the so-called flexible mechanisms, which allow
to carry out projects in less developed countries (CDM &#151; Clean Development Mechanism)
and in industrial countries with transition economies (JI &#151; Joint Implementation) in
order to obtain declines in emissions that are equivalent to domestic declines. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
National Action Plan for the reduction of greenhouse gas emissions 2003-2010, which is now
being formulated, provided for the recourse to flexible mechanisms in order to meet the
objectives set by the Kyoto Protocol. Eni, thanks to its presence in 70 countries, is an
elective partner for carrying out CDM and JI projects thus contributing to the Italian
program of greenhouse gas reduction. In December 2003 in Milan the conference of parties
to the Kyoto Protocol &#150; COP9 &#150; was held. On that occasion Eni and the Ministry
for the Environment signed a voluntary agreement for using flexible mechanisms and
promoting CDMs and JIs and contributing to the sustainable development of host countries. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
significant reduction potential derives from extracting activities outside Italy, that in
some cases, given the lack of local market outlets, require the flaring of natural gas
associated to oil production. The elimination of flaring and the use of associated gas for
the development of local economies allow to achieve sustainable development while reducing
greenhouse gas. The validation of such projects as CDM and JI will provide emission
credits and facilitate the meeting of the Italian gas emission target. Eni already carried
out Zero Gas Flaring projects in Nigeria and Congo while others are underway. Eni endorsed
the Global Gas Flaring Reduction Initiative of the World Bank in order to fight for the
elimination of obstacles to the completion of gas flaring reduction projects. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
relevant initiatives related to the Kyoto Protocol concern the introduction of the
European scheme of emission trading in 2005. Most of Eni&#146;s industrial sites are
included in this scheme and will be assigned a ceiling of emissions according to a
National Allocation Plan. In the first period emissions exceeding the set ceilings will be
subject to a fine amounting to euro 40 for each tonne of carbon dioxide. All companies are
going to identify and carry out projects for emission reduction. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
introduced a complete, accurate and transparent protocol for the accounting and reporting
of greenhouse gas emissions, which is an essential requirement for emission certification.
Indeed, accurate reporting will support the strategic management of risks and
opportunities related to greenhouse gases, the definition of objectives and the evaluation
of progress. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
a support to its general strategy for a sustainable management of greenhouse gases, Eni
continued its programs for the development of natural gas in Italy and outside Italy by
means of technologically advanced projects such as the Blue Stream gas pipeline from
Russia to Turkey and the Greenstream pipeline from Libya to Sicily. Increased gas
availability in Italy will lead to a further expansion of the gas-power integration
through high efficiency combined cycles with much lower carbon dioxide emissions than coal
and liquid fuels. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
a medium term perspective work is underway on the separation of carbon dioxide and its
permanent storage in geologic reservoirs, a part of the CO<SUB>2</SUB> Capture Project, an
international R&amp;D program carried out in conjunction with other oil companies. </FONT></P>

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<a name="a26"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Regulation of Eni&#146;s
businesses </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulation
of exploration and production activities</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
exploration and production activities are conducted in many different countries and are
therefore subject to a broad range of legislation and regulations. These cover virtually
all aspects of exploration and production activities, including matters such as license
acquisition, production rates, royalties, pricing, environmental protection, export, taxes
and foreign exchange. The terms and conditions of the leases, licenses and contracts under
which these oil and gas interests are held vary from country to country. These leases,
licenses and contracts are generally granted by or entered into with a government entity
or state company and are sometimes entered into with private property owners. These
arrangements usually take the form of licenses or production sharing agreements. See
&#147;Regulation of the Italian Hydrocarbons industry&#148; and &#147;Environmental
Matters&#148; for a description of the specific aspects of the Italian regulation and of
environmental regulation concerning Eni&#146;s exploration and production activities.<BR>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Licenses
(or concessions) give the holder the right to explore for and exploit a commercial
discovery. Under a license, the holder bears the risk of exploration, development and
production activities and provides the financing for these operations. In principle, the
license holder is entitled to all production minus any royalties that are payable in kind.
A license holder is generally required to pay production taxes or royalties, which may be
in cash or in kind. Both exploration and production licenses are generally for a specified
period of time (except for production licenses in the United States which remain in effect
until production ceases). The term of Eni&#146;s licenses and the extent to which these
licenses may be renewed vary by area. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Production
sharing agreements (PSAs) entered into with a government entity or state company generally
obligate Eni to provide all the financing and bear the risk of exploration and production
activities in exchange for a share of the production remaining after royalties, if any. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
general, Eni is required to pay income tax on income generated from production activities
(whether under a license or production sharing agreement). The taxes imposed upon oil and
gas production profits and activities may be substantially higher than those imposed on
other businesses. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Regulation of the
Italian Hydrocarbons Industry </FONT></H1>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overview</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
matters regarding the effects of recent or proposed changes in Italian legislation and
regulations or EU directives discussed below and elsewhere herein are forward-looking
statements and involve risks and uncertainties that could cause the actual results to
differ materially from those in such forward-looking statements. Such risks and
uncertainties include the precise manner of the interpretation or implementation of such
legal and regulatory changes or proposals, which may be affected by political and other
developments.</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Italian hydrocarbons industry is regulated by a combination of constitutional provisions,
statutes, governmental decrees and other regulations that have been enacted and modified
from time to time, including legislation enacted to implement EU requirements
(collectively, the &#147;Hydrocarbons Laws&#148;). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the early 1990s, the Government commenced the gradual liberalization of the Italian
hydrocarbons industry by implementing legislation that provided for, among other things,
(i) the elimination of price controls on petroleum products, (ii) the abolition of
Eni&#146;s right of first refusal with respect to the purchase of natural gas produced
offshore Italy, (iii) the implementation of a partial third-party access system for the
transportation of domestic natural gas, (iv) the establishment of a system for the
updating of on natural gas retail prices and (v) the establishment of a royalty reduction
program. Law No. 481 of November 14, 1995 (the &#147;Authority Law&#148;), provided for
the establishment of a new regulatory body, known as the <I>Autorit&agrave; per
l&#146;Energia Elettrica e il Gas</I> (the &#147;Authority&#148;), the Italian Public body
charged with, among other things, regulatory supervision of electricity activities and
natural gas distribution in order to guarantee the promotion of competition and efficiency
while providing for an adequate level of service quality. As the latter is concerned, the
Authority is mainly responsible for the public service of natural gas distribution through
urban networks. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decree No. 164, which
enacted into Italian  Legislation  European  Directive on Natural Gas 98/30/CE,
 regulates the Italian natural gas market.  Prior to the  implementation of Decree No.
164, the Italian natural gas market lacked a legislative framework. See "--Natural Gas". </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislative
Decree No. 32 of February 11, 1998 (&#147;Decree No. 32&#148;) as amended by Legislative
Decree No. 346 of September 8, 1999 and Law Decree No. 383 of October 29, 1999,
significantly changed Italian regulation of service stations. In particular, the Decree
replaced the process of concessions granted by the Ministry of Industry, regional and
local authorities with a license granted by city authorities. See &#147;&#151;Refining and
Marketing of Petroleum Products&#148;. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislative
Decree No. 443 of October 29, 1999 (&#147;Decree No. 443&#148;) modified Legislative
Decree No. 112 of March 31, 1998 (&#147;Decree No. 112&#148;) which attributed to Regions
many responsibilities in the field of energy and specifically in the sector of
hydrocarbons. Decree No. 443 attributes to the State administrative decisions concerning
exploration and production of hydrocarbons in the Italian offshore as well as natural gas
storage in fields, whilst administrative decisions concerning exploration and production
of hydrocarbons on the Italian mainland are made by the Government in agreement with
Regions. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration
and Production</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Exploration
Permits and Production Concessions.</I> Pursuant to the Hydrocarbons Laws, all
hydrocarbons existing in their natural condition in strata in Italy or beneath its
territorial waters (including its continental shelf) are the property of the State.
Exploration activities require an exploration permit, while production activities require
a production concession, in each case granted by the Ministry of Industry. The initial
duration of an exploration permit is six years, with the possibility of obtaining two
three-year extensions and an additional one year extension to complete activities
underway. Upon each of the three-year extensions, 25% of the area under exploration must
be relinquished to the State. The initial duration of a production concession is 20 years,
with the possibility of obtaining one ten-year extension and additional five-year
extensions. </FONT></P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Royalties.
          </I> The Hydrocarbons Laws require the payment of royalties for hydrocarbon
          production. Royalties are equal to 7% and 4%, respectively, for onshore and
          offshore production of oil and 7% for both onshore and offshore production of
          natural gas. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Preferential
Rights.</I> Until December 31, 1996, Eni was entitled to a number of preferential rights,
including, among other things, the exclusive right to explore for and exploit, without
permit or concession, hydrocarbon deposits in the Exclusive Area. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
1994, the EU enacted a licensing directive (the &#147;Licensing Directive&#148;), which
required member states to enact legislation eliminating, by December 31, 1996, all laws
that provided exclusive rights to a single entity in a specific geographic area. Decree
No. 625, which was adopted to implement the Licensing Directive, eliminated the
exclusivity of Eni&#146;s rights in the Exclusive Area. Decree No. 625 allows Eni to
obtain upon application exploration permits and production concessions having effect from
January 1, 1997 that would preserve such rights as have vested under the regime of
exclusivity (based on the activities that have been carried out or are currently
underway). </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas
&amp; Power<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas market in Italy</I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The European Directive on Natural Gas
was implemented into Italian legislation through Legislative Decree No. 164 of May 23,
2000 (&#147;Decree No. 164&#148;), effective from June 21, 2000. As concerns natural gas
activities carried out by Eni the most relevant aspects of the decree are as follows: (i)
starting in 2003 all customers are eligible customers (with access to the natural gas
system); (ii) from January 1, 2003 to December 31, 2010 no single operator is allowed to
hold a market share higher than 50% of domestic sales to final customers. In addition, no
single operator is allowed to supply more than 75% of all natural gas volumes introduced
in the domestic transmission network by 2002, decreasing by 2 percentage points per year
until it reaches 61%. The two ceilings are calculated net of losses (in the case of sales)
and own consumption. A three-year average mechanism is used to evaluate whether volumes
introduced in the domestic transmission network or sold to final customers are above set
ceilings. Those ceilings are considered exceeded if at the end of the first three-year
period, the average of volumes introduced in the domestic transmission network or sold to
final customers is higher than the allowed average for that period. In subsequent years,
the three-year average is calculated on data of the most recent three years; (iii) imports
from the European Union are free, while natural gas imported from outside the European
Union is subject to an authorization of the Ministry of Productive Activities. Subjects
importing from countries outside the E.U. must secure a certain availability of strategic
storage. Such constraints apply also to the import contracts entered into before the
coming into effect of Decree No. 164, these contracts are automatically considered
authorized since this date; (iv) natural gas transport and dispatching activities are to
be carried out by a separate company that is not allowed to carry out any other activity
in the natural gas field, with the only exception of storage, for which, however,
accounting and operating separation is envisaged. Also distribution, which includes the
transport of natural gas by means of local gas pipeline networks for delivery to
customers, is to be carried out by a separate company which may not perform other gas
related activities. Sale activity to final customers is compatible only with import,
export and production activities and is subject to an authorization from the Ministry of
Productive Activities. Concessions for the distribution of natural gas will be assigned
only through an auction procedure; and (v) tariff criteria and return on capital employed
for transport, dispatching, storage, use of LNG terminals and distribution are determined
by the Authority. Third parties are allowed to access transport infrastructure on the
basis of criteria set by the Authority. As provided for by the decree, a Network Code
containing norms and regulations for the operation of and access to infrastructure was
prepared by operators on the basis of criteria set by the Authority.
<BR>Based on 2002 and 2003 data and
management &#145;s forecasts, Eni expects to be compliant with both ceilings in the first
three-year period.</FONT></P>





<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Natural gas market in
Europe</I> </FONT> </P>

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<p ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Directive 2003/55/CE</I> </FONT> </p>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On August 4, 2003, the European
Directive 2003/55/CE of the European Parliament and the European Council came into force.
It contains common regulations for the internal market of natural gas and repeals
Directive 98/30/CE. Member States are to include the directive into their laws by July 1,
2004.  </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The most relevant
aspects of the directive are the following: </FONT></P>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
member States must designate an operator for transmission, distribution and storage systems of natural gas and LNG; </FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
where the transmission system operator is part of a vertically integrated undertaking, it
shall be independent at least in terms of its legal form, organization and decision making
from other activities not relating to transmission. These rules shall not create an
obligation to separate the ownership of assets of the transmission system from the
vertically integrated undertaking. Unbundling of transmission and distribution from other
activities in the field of natural gas was already set in Legislative Decree No. 164/2000,
but the Directive provides also for a &#147;functional separation&#148;; i.e. those
persons responsible for the management of the transmission system operator may not
participate in company structures of the integrated natural gas undertaking responsible,
directly or indirectly, for the day-to-day operation of the production, distribution and
supply of natural gas; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
member States shall ensure the implementation of a system of third party access to the
transmission and distribution system, LNG facilities, storage facilities and upstream
pipeline networks; access to the system is regulated; negotiated access is provided only
for storage facilities as an alternative option to regulated access; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
natural gas undertakings may refuse access to the system: (i) on the basis of lack of
capacity; (ii) where the access to the system would prevent them from carrying out their
public service obligations; (iii) on the basis of serious economic and financial
difficulties with take-or-pay contracts. In the latter case, undertakings can apply for a
derogation. Member States or the designated competent authority may decide to grant a
derogation, and shall notify the Commission without delay of their decision. When deciding
on the derogations, the Member State, or the designated competent authority shall take
into account, in particular, the following criteria: (i) the seriousness of the economic
and financial difficulties encountered by natural gas undertakings and transmission
undertakings or eligible customers; and (ii) the extent to which, when accepting the
take-or-pay commitments in question, the undertaking could reasonably have foreseen, that
serious difficulties were likely to arise. Serious difficulties shall in any case be
deemed not to exist: (i) when the sales of natural gas do not fall below the level of
minimum offtake guarantees; (ii) in so far as the relevant gas purchase take-or-pay
contract can be adapted; and (iii) when the natural gas undertaking is able to find
alternative outlets; </FONT></p></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
application of the rules concerning derogation from third party access. In particular,
article 22 provides for an exemption from the general criteria of third party access in
the case of major new gas infrastructures and of significant increases of capacity in
existing infrastructures. This exemption, aimed at favoring investments in new capacity,
will be granted on a case by case basis; </FONT></p></TD>
</TR>
</TABLE>

<BR>


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<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
opening up of the market: the deadlines for the recognition of eligible customers are longer than those specified in Legislative Decree No. 164/2000,  which extended this definition from January 1, 2003 to
        all customers and are the following: July 1, 2004 for all non-household customers and
July 1, 2007 for all customers. </FONT></p></TD>
</TR>
</TABLE>



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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni does not expect any major impact
on its activity in the natural gas business deriving from the implementation of Directive
2003/55/CE into the Italian body of laws. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Primary distribution</I> </FONT> </P>

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     <P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Prices</I>.
          Natural gas prices are freely established among buyers and sellers following the
          liberalization of the natural gas sector introduced by Decree No. 164. Eni
          applies a multi-choice price structure to its individual customers or groups of
          customers who are able to choose among various forms of price indexation. This
          price structure aims at reducing the impact of the volatility of raw material
          prices due to fluctuations in the prices of energy parameters and in exchange
          rates by introducing mechanisms that minimize commodity risks. The Authority
          holds a power of surveillance on this matter. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Procedure
against the Antitrust Authority</I>. On February 5, 2003, Eni filed a claim
with the Regional Administrative Court of Lazio in Rome requesting the annulment of the
measures taken by the Antitrust Authority, on November 21, 2002, concerning Eni&#146;s
alleged violation of competition rules as a result of an investigation commenced at the
request of Blugas SpA. The Authority judged that Eni had violated access rules by entering
in 2001 into contracts outside Italy with other operators that have imported into Italy
the volumes of natural gas exchanged. The Antitrust Authority considers that these
contracts infringe the rationale of article 19 of Legislative Decree No. 164/2000 which
defines the limits for natural gas volumes to be input by single operators into the
national network. Given this infringing behaviour, the lack of clarity of Italian
regulations and Eni&#146;s availability to increase the transmission capacity of gaslines
outside Italy, the Antitrust Authority imposed on Eni a symbolic fine amounting to euro
1,000 and requested Eni to submit &#147;a report indicating measures to be taken to
eliminate infringing behaviours with specific attention to the upgrading of the
transmission network or equivalent actions&#148;. On February 19, 2004, Eni filed this
report in which the company stated its commitment to increase the level of competition in
the national gas market, particularly the upgrading of natural gas import pipelines TAG
(Austria) and TTPC (Tunisia), on the condition that construction of LNG terminals would
not be commenced in Italy by third parties. With a decision of March 18, 2004, notified on
March 26, 2004, the Antitrust Authority considered the measures suggested by Eni in its
February 19 report to be not sufficient and therefore set a specific default procedure. On
April 26, 2004, Eni suggested integrations to the measures previously proposed and the
Authority started a market test to obtain suggestions by other operators on this issue.
After the  completion  of the market test and various  meetings with the  Authority,  on June 18, 2004 Eni presented to the Authority a
proposal  through which to comply with the requests  included in the  Authority&#146;s  decision of November 21, 2002. The proposal  entails
the sale of a total of 9.2 billion  cubic meters of natural gas at a set price  starting in 2004 through 2008 (2.3 billion cubic meters
for each year of the  four-year  period)  to be  supplied  at  Tarvisio  at the border  with  Austria  (before  entering  the  national
transmission  network) to be assigned on a pro-rata  mechanism.  In its decision of June 24, 2004,  the Authority  judged this proposal
adequate to interrupt the effects of the  infringing  behaviour  highlighted  in the November 21, 2002  decision.  In its June 24, 2004
decision the  Authority  also  extended to October 7, 2004 the  deadline  for closing the  procedure in order to allow Eni to prove the
implementation of its proposal.
</FONT></P>

<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<I>Joint official inquiry of the Authority for electricity and gas and the Antitrust Authority.
</I>


On June 19, 2004 the  Authority for  electricity  and gas and the Antitrust  Authority  published  their
findings on the basis of a joint  official  inquiry  regarding  the Italian gas market  started in March
2003 by with the aim of  acquiring  elements  and  information  useful  to  define  actions  to  improve
competition.  According to both  Authorities,  the overall level of competition  of the Italian  natural
gas market is  unsatisfactory  due to the  dominant  position  held by Eni in many phases of the natural
gas chain.  Specifically,  the Authorities state that the vertical  integration of Eni in the supply and
transport of gas has restricted the  development of competition in Italy  notwithstanding  the antitrust
ceilings  introduced  with Law 164/2000.  It is further  stated that the overall price of natural gas in
Italy  (in  particular  for  the  industrial  sector)  is  higher  that  in  other  European  countries.
Accordingly,  both  authorities  identified  possible  measures which in their opinion could enhance the
level  of  competition  in the  natural  gas  market,  among  which  the  most  important  are:  (i) the
construction  of new  infrastructure  for the import of natural gas; (ii) the creation of an independent
transmission  system  operator  (TSO) that owns and operates both the national  high pressure  transport
grid and the  storage  of gas;  and (iii) a framework for the assignment to third parties of
 natural  gas  volumes  or  natural  gas  contracts relating to Eni&#146;s  take-or-pay  long term  natural  gas supply  contracts.
Management  believes the  institutional  debate on the degree of competition in the Italian  natural gas
market to be an area of attention and cannot exclude  negative  impacts on Eni&#146;s financial  condition or
results of operations in future years  deriving from the  developments  of this matter.  In  particular,
the  implementation of any of the above measures designed to improve  competition in the Italian natural
gas market in the future may have a material  adverse effect on Eni&#146;s financial  condition or results of
operations.
</FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Secondary distribution</I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
decision No. 237 dated December 28, 2000, the Authority determined tariff criteria for
natural gas distribution and supply to non eligible customers as provided for by Decree
No. 164. This tariff reform separates distribution from sale activities and links tariffs
to costs borne in order to provide safe and efficient services. Tariffs are determined so
that annual revenues from natural gas distribution and supply activities to non eligible
customers do not exceed the threshold on distribution and sale revenues determined in
order to cover operating costs and the remuneration of capital employed and are adjusted
according to the price cap method based on parameters and formulas determined by the
Authority. From July 2001 tariffs (previously based on type of use&#151;cooking, heating,
small enterprises) have been progressively substituted by tariffs varying according to
consumption levels and costs. According to Authority decision No. 195/02 dated November
29, 2002 every three months the portion of the tariff which relates to the cost of natural
gas is adjusted to international oil, home heating oil and low sulfur fuel oil prices as
measured over a nine-month period. With decision No. 87 of July 31, 2003, the Authority
for Electricity and Gas changed this tariff regime by also introducing the method of
revaluated historical cost for the determination of capital employed for those companies
that published audited financial statements starting with fiscal year ended before January
1, 1991 (which includes Italgas), as an alternative to the parameter-based method defined
in decision No. 237/2000. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Decree of the President of the Council of Ministers of October 31, 2002, conferred to the
Authority the powers to: (i) define, calculate and update electricity and gas tariffs also
after the opening up of markets to eligible customers with consumption under 200,000
standard cubic meters, in order to ensure a regular and gradual access to the free market
by final users that are non eligible customers as well as eligible customers who opt for
this regime; (ii) define methods for updating tariffs with reference to variable costs
that minimize the impact of inflation by providing for updating schedules adequate to the
objective of reducing the effects of energy prices on inflation, but safeguarding the
functioning of energy producing companies and the competitiveness of the producing system;
and (iii) define criteria for allocating the costs deriving from social support measures,
in order to reduce the aggregate net cost of interventions as much as possible and to
ensure neutrality in the application of tariffs to the various groups of users.
Consistently with this decree, the Authority: (i) with Decision No. 195 of November 29,
2002 changed the methods for periodically updating the tariff components of electricity
and natural gas related to the changes in international prices of fuels and raw materials.
Such changes concern the schedules update process (from every two months to every three),
and the duration of the reference period for the calculation of changes in average
international prices as compared to the application quarter (from the preceding six months
to the preceding nine months). The invariance threshold, beyond which tariffs are updated,
remained at 5%.; and (ii) with Decision No. 207 of December 12, 2002, it decided that
companies selling natural gas through local networks can maintain the conditions applied
to non eligible customers at December 31, 2002 until the customer accepts a new contract
offer. In addition, the Authority decided that these companies can propose their own new
contract offers determined according to the criteria established by the Authority,
adequately advertising them before March 31, 2003 (such offers must be published on the
companies web page, on at least one newspaper of general circulation and on the Official
Gazette of their region or autonomous province). The Authority with Decision No. 138 of
December 4, 2003, modified by Decision No.27/2004, established the criteria for the
determination of conditions of natural gas supply to end customers and distribution
tariffs, applicable from January 1, 2004. </FONT></P>




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<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
decision  introduces two provisions  intended for end customer who were non eligible
 customers  before January 1, 2003 and to end customers that have not exercised their
capacity to enter contracts:</FONT></DIV>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
   a  reduction  in the supply  price,  by means of a discount  in tariff of about 50% of the  average  reductions  registered  in the
    wholesale market starting in 2002 for what concerns the cost of raw materials, net of the storage and transmission components,  and
    100% of reductions in transmission and storage tariffs  registered in tariff  adjustments for thermal years 2002-2003 and 2003-2004
    and</FONT></P></TD></TR>
</TABLE>

<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>   a  compensation  in favour of  distribution  areas with high unit costs by means of a discount on the  distribution  cost  covering
    component.  The  discount  is  financed  by a slight  increase  in the  variable  part of the  distribution  tariff  applied to all
    distribution areas. This compensation is administered by a governmental agency until September 30, 2006.</FONT></P></TD></TR>
</TABLE>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Decision No.  138/2003 sets at July 31, 2005 the date before which the Authority  will
control the degree of competition on the market of end customers,  in order to decide any
 cancellation or change of the obligation  imposed upon companies  selling natural gas by
article 1 of Decision No.  207/2002  (entailing the  application  of the same  conditions
 applied until the customer  accepts a new contract  offer to all end  customers who at
December 31, 2002 were not eligible  customers  and to those that were eligible
 customers but did not chose to sign new contracts).</FONT></P>




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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Transport</I> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Transport
 tariffs</i>.  With Decision No. 120 of May 30, 2001,  the Authority  published the criteria
which transport  companies have to apply in determining  natural gas transport and
dispatching tariffs on national and regional  transportation  networks,  as provided for
by Decree No. 164.  Tariffs are subject to approval by the same  Authority,  which
 ensures  their  compliance  with  preset  criteria..  The new tariff  system substituted
 preceding  agreements  between Eni and customers of any  category.  The new tariff
system is in force for the first  regulatory  period  including  four thermal  years and
starting on October 1, 2001 (the &#147;thermal  year&#148; goes from  October 1 to September  30).
At the  beginning of each  calendar  year  transport companies  submit the tariff
 proposal to the  Authority  which in turn  approves or rejects the proposal of transport
companies.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Criteria
 established  by the  Authority  provide for a cap on revenues from  transport and
 dispatching activity  (&#147;allowed  revenues&#148;)  which is adjusted  annually;  those
 criteria  also  provide for a separate treatment of revenues on existing  assets and on
new capital  expenditure  on  expansions  and  extension of infrastructure.  In the first
 thermal year allowed  revenues are  calculated  as the sum of: (i)  operating costs
including storage and modulation  costs;  (ii) amortization and depreciation of transport
assets;  and (iii) return on net capital  employed.  Net capital employed is calculated
by revaluating  historic costs of transport  infrastructure  (pipelines,  compressor
 stations and other  support  equipment)  on the basis of certain inflationary  indexes;
 resulting amounts are adjusted to take into account the residual useful life of assets
 (pipelines  are estimated to have a useful life of 40 years) and also  subtracting
 State grants.</FONT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 The application of this  methodology  implies an estimated value of Eni&#146;s
transport  assets of approximately euro 9.6  billion.  This,  however,  is a valuation
 for  regulatory  purposes  and should not be read as an indication  of the  market
 value of Snam  Rete  Gas.  The rate of return  on  capital  employed  set by the
Authority is 7.94%  (pre-tax).  Once  established,  allowed revenues for the first year
are divided into two components:  (i)  capacity  revenues  equal to 70% of  allowed
 revenues  which  are the  maximum  amount of revenues  collectable from the sale of
transport  capacity to customers;  and (ii) commodity  revenues equal to 30% of allowed
revenues which are the maximum amount of revenues  collectable  from transported
 volumes. Starting  from the second year these two  components  are  adjusted on a yearly
 basis to take into  account inflation and certain reduction  factors (set at 2% and 4.5%
for capacity  revenues and commodity  revenues, respectively);  commodity  revenues  are
also  adjusted to  transported  volumes of the  current  regulatory period.  The 2%
reduction factor on capacity  revenues provides scope for improving results of operations
of the  transport  company if cost  reductions  exceed the set  amount,  whereas the 4.5%
 reduction  factor on commodity  revenues  provides  scope for  improving  results  of
 operations  of the  transport  company  if transported  volumes grow more than the
reduction factor.  Allowed revenues can also be increased to reflect costs  associated
 with  exceptional  events,  quality  improvement in service and efficient  utilization
of resources;  these  increases  have yet to be  established  by the  Authority.  New
 capital  expenditure  in extension and expansion enable transport  companies to increase
the capacity revenue by a stated  percentage in the regulatory period following the
period in which new capital  expenditure is made. In addition,  those capital
 expenditures  give rise to a 6 year fixed  increase  in allowed  commodity  revenues.
 This  tariff system  will be in force for four  years  (first  regulatory  period).  At
the end of the  first  regulatory period,  all transport cost components  will be
recalculated  and 50% of higher cost reductions with respect to  established  efficiency
 improvements  will  be  recognized  to  transport  companies  and  50%  will be
transferred to customers.  Once the allowed revenues are established,  transport
companies define individual tariffs  to  clients  which are based on a charge  for the
 capacity  used at the  entry  location  (border, fields,  storage  sites)  and the
 capacity  used at  interconnection  joint  nodes with  regional  networks (divided  into
15 zones) and on a charge for the capacity  used at regional  level,  providing for
discounts to those entering the network at less than 15 kilometers  from the
 interconnection  point. A further charge (commodity  charge)  is related  to the
 amounts of gas  transported  plus an annual  fixed  charge  varying according to the
delivery points.</FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
 Decision No. 71 of June 26, 2003 the Authority  approved the tariffs for natural gas
 transmission on the Italian network for thermal year 2003-2004, that came into force on
October 1, 2003.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Network
code</I>           With  Decision No. 75 of July 1, 2003,  the  Authority  for
 electricity  and gas approved Snam Rete Gas Network Code,  which defines rules and
 regulations  for the operation and management of the  transmission  network.  The
Network Code, in accordance with  Legislative  Decree No.  164/2000,  is based on the
criteria set by the Authority with decision No.  137/2002,  aimed at guaranteeing  equal
access to all customers,  maximum impartiality and neutrality in transport and
dispatching activities.  The Network Code  regulates the allocation of  transmission
 capacity,  obligations of transporter  and customer and the procedures  through which
customers can sell capacity to other users.  The allocation of transport  capacity at
entry points in the national  gasline  network  (point of  interconnection  with import
 gaslines) can be annual or can last up to five  thermal  years.  Entities  eligible  to
request  multiannual  allocation  are parties  in  multiannual  import  contracts  within
 the  limit of their  daily  average  contract  volumes, increased  (for thermal year
 2003-2004) by a third of the difference  with maximum daily contract  volumes. Available
 capacity is allocated to parties in multiannual  import contracts  containing take or
pay clauses signed before August 10, 1998 (date of coming in force of European Directive
 98/30/CE),  with priority over other customers;  if in a thermal year requests for
capacity happen to be higher than available capacity,  a pro-rata mechanism is applied in
compliance with the aforementioned priority.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Parties
in annual or shorter import  contracts and parties in multiannual  import contracts are
eligible to  request  annual  capacity  allocation  within  the  limit of  maximum  daily
 contract  volumes  and the difference  between  maximum  daily  contract  volumes and
average  daily  contract  volumes,  respectively. Available  transport  capacity is
allocated to parties in annual import contracts and parties in multiannual import
 contracts  with  priority;  if in a thermal year  requests  for  capacity  happens to be
higher than available capacity, a pro-rata mechanism is applied in compliance with the
aforementioned priority.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Network Code  introduces  into the Italian  system the concept of &#147;virtual  exchange
 point&#148;,  where network users can make sale and purchase  transactions  daily. This
telematic market (hub), which started to operate on October 1, 2003,  is operating on the
Snam Rete Gas internet  site.  From that date Snam Rete Gas manages a secondary  market
for the  exchange of natural gas based on specific  procedures  that consist in: (i) a
 computerized  platform that allows users to sell and exchange  transmission  capacity
for natural gas input into the national  network;  (ii) a contract template for accessing
the computerized  platform;  (iii) technical  rules for accessing the platform.  With
decision No. 22 of March 19, 2004, the Authority  defined the development  phases of the
natural gas exchange and asked Eni to prepare an implementation  plan for the new rules,
that entail changes and extension of the present  computerized  management  system.  With
the new rules the Authority  aims at allowing  that:  sale and exchange can take place in
the same day when the need is felt to sell or purchase  natural gas volumes  (until now
this was possible only with  bookings  filed 24 hours in  advance);and  (ii) sale and
exchange of capacity at the entry  points to the national  network are regulated  for a
 minimum  duration  of one day (at  present  this was  possible  only for one  month).
 The Authority&#146;s  aim is to create a centralized  market based on an official  reference
 price formed within the exchange  rather than on prices agreed  bilaterally by
operators,  an automatic  meeting point of demand and supply managed independently.
See&#147;Item 3 &#146;&#150; Risk Factors&#148; for a description of the risks  associated  with Eni natural gas
take-or-pay purchase contracts deriving from the implications of the network code rules.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Law
Decree No. 239/2003 (protection against black-outs)</I>. Law Decree No. 239/2003,
converted with amendments into Law No. 290/2003, contained among other things new
provisions for the construction of generation plants and terminals for the
regasification of liquefied natural gas, as well as simplified procedures for the
authorization of plants for electricity generation, electric mains, pipelines and
gaslines. The Decree also prohibits companies operating in the natural gas and
electricity industries to hold stakes higher than 20% in the share capital of
companies owning and managing national networks for the transmission of natural gas
and electricity from July 1, 2007. Following this provision, Eni will have to sell
part of its stake in Snam Rete Gas &#150; in which it holds a 50.07% stake &#150; until it
reaches the 20% maximum interest allowed. For a discussion of the expected
impact of this sale, see "Gas &amp; Power - Transmission, Dispatching and Regasification Assets" above. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Regional
Law No. 2 of March 26, 2002</I>. Under Regional Law of March 26, 2002, the Sicilia
Region introduced an environmental tax upon the owners of primary pipelines in Sicilia
(i.e. pipelines operating at a maximum pressure of over 24 bar). The tax was
payable as of April 2002. In order to protect its interests, Snam Rete Gas filed a
claim with the European Commission, aimed at opening a proceeding against the Italian
Government and with the Tax Commission of Palermo. The Authority for Electricity
and Gas, although acknowledging that the tax burden is an operating cost for the
transport activity, subjected its inclusion in tariffs to the final ruling on its
legitimacy by relevant authorities. Therefore, for the 2002-2003 thermal year with
decision No.146/2002 and for the 2003-2004 thermal year with decision No. 71/2003
the Authority published two sets of tariffs: one, in force, that does not take into
account the tax, and the second one including it, that will be automatically applied
with retroactive effect should the tax be judged legitimate. On September 10,
2002, Snam Rete Gas filed a claim with the Regional Administrative Court of
Lombardia requesting the immediate application of tariff including the tax. With the
ruling of December 20, 2002, the court judged the tax at variance with European rules
and therefore did not accept Snam Rete Gas&#146;s claim. In December 2002, Snam Rete
Gas suspended payments based on authoritative opinion of legal counsel and the Court ruling
Payments effected until November 2002 totaled euro 86.1 million. In January 2003 the
Sicilia Region presented an appeal to the Council of State against the ruling of the
Regional Administrative Court of Lombardia for the part that states the variance of
the regional law with European rules. On December 16, 2003, the European Commission
judged the tax instituted by the Republic of Italy, through the Sicilia Region,
to be in contrast with European rules and with the cooperation agreement between
the European Economic Community and the Peoples Democratic Republic of Algeria;
the European Commission also stated that such environmental tax is in contrast with
the common customs tariff because it modifies the equality of customs expenses on
commodities imported from third countries and could create a deviation in trade with these
countries and a distortion in access and competition rules. The Commission requested
the Italian Government to present its observations about the argument. With a decision
dated January 5, 2004, the Provincial Tax Commission of Palermo declared the
environmental tax of the Sicilia Region illegitimate because it is in contrast
with European rules and therefore accepted Snam Rete Gas&#146;s claim for the repayment
of the first installment of euro 10.8 million already paid in April 2002, to the
Sicilia Region. On May 4, 2004, the Sicilia Region repaid the first instalment to Snam Rete Gas. On
April 2, 2004 the Sicilia Region presented recourse to the Regional Tax Commission
at Palermo. Snam Rete Gas started the necessary actions to obtain reimbursement of
fixed tax payments already paid in April 2002 (euro 75,3 million). The Tax Commission
of Palermo has yet to render its decision. In any case, Snam Rete Gas will not
suffer any adverse financial consequences from the outcome of this dispute: if the
tax is considered illegitimate in the court of law, the company will have the right to
the restitution of the amounts already paid; whereas, in case the tax is confirmed,
Decisions No. 146/2002 and 71/2003 of the Authority already provide for its automatic
inclusion in gas tariffs with retroactive effect. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electricity
generation</I></B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
regulatory  framework of electricity  generation is contained in Legislative  Decree No.
79 of March 16, 1999,  which  incorporates  European  Directive  96/92/CE and contains in
particular  the  definition of rules  necessary for the  electricity  market (the so
called  electric  exchange) and for the improvement of the safety of the national
electric system.</FONT></P>




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<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New
market rules approved with a minister Decree of December 19, 2003 and dispatching  rules
 introduced by Decision No. 168/2003 of the Authority provide for the following:</FONT></DIV>
<BR>
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>   gradual introduction of the electricity exchange from April 1, 2004 and</FONT></P></TD></TR></TABLE>

<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>   in case of congestion, application of a system of local offers.</FONT></P></TD></TR></TABLE>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until
the entry into force of the electricity  exchange, a transitional system of offers of
sale (STOVE) was  introduced  by  decision  No.  67/2003  in force  from July 1, 2003 for
the  supply of  electricity  to customers on the regulated market.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After
recent  black-outs a few measures were taken to increase safety and functioning of the
electricity sector and to promote the construction of interconnection lines with other
countries.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Legislative
Decree No. 379 of December 19, 2003,  introduces the remuneration of electricity
 generation capacity  in order  to  guarantee  that  domestic  demand  is met with the
 required  reserve  margins.  The remuneration  mechanisms  will  be  defined  in  2004.
 For  that  year  remuneration  will be  effected  by subdividing among the eligible
producers the present tariff revenues destined to reserve charges.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Law
No.  57 of  March 5,  2001,  stated  that  after  90 days  from the sale by Enel of at
least  15,000 megawatts of production  capacity,  any customer with  consumption  higher
than 100,000  kilowatthour in the preceding year becomes an eligible customer.  Thus from
April 29, 2003, the annual  consumption  required to access the free  market  became
 much lower than the  preceding  limit of 9 million  kilowatthour.  The free market  then
went from about 35% to about 47% of total  sales and,  if Draft Law  A.S.2421  presently
 under discussion  at the  Parliament  is  approved,  the  eligibility  limit  will be
 further  lowered  to 50,000 kilowatthour.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January 30, 2004,  the  Authority  disseminated  a  consultation  document on the
 monitoring  of the electric  market  and the  control  of market  power.  This  document
 suggests,  among  other  things,  the definition of indices that the  Authority  will
use to monitor the market and of  transitional  measures for 2004 influencing the
formation of prices (definition of a ceiling price and a bid cap).</FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;S<B><I>torage
of natural gas</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
right to store natural gas in depleted fields in Italy is exercised pursuant to
concessions  granted by the Ministry of Productive  Activites  (formerly  Ministry of
Industry).  Before Decree No. 164 came into force,  only  entities  already  holding a
concession  to exploit a  hydrocarbon  deposit  were  entitled to receive a concession to
store natural gas,  which is granted by the Ministry of Productive  Activities.  The
initial duration of a concession is 20 years, with the possibility of obtaining ten-year
 extensions.  After the  expiration of a  concession,  new storage or  production
 concessions  on the same field may be granted through competitive  auctions.  Pursuant
to Decree No. 625, unused storage capacity can be made available to third  parties,
 subject to the approval of the Ministry,  on a negotiated  basis.  Until December 31,
1996, Eni had the exclusive right to store natural gas in depleted  fields in the
Exclusive  Area.  Decree No. 625 eliminated  this  exclusive  right,  while  granting
 Eni the  right  to  obtain  upon  application  storage concessions  effective  from
 January 1, 1997 that would  preserve  the  rights  vested  with Eni during the regime of
exclusivity  (based on current storage activities or certain statutory  conditions).  Eni
obtained the ten storage concessions which it had applied for.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
most important aspects of Decree No. 164 concerning  production and storage activities
 performed by Eni are the following:  (i) it favors the development of domestic natural
gas reserves;  (ii) storage are to be carried out by a separate  company not  operating
in other gas  activities  (such as Stoccaggi Gas Italia SpA) or by companies which only
engage in transmission and  dispatching,  provided the accounts of these two activities
are clearly separated from the accounts of storage.  Existing storage  concessions are
subject to the Decree. Their original term was confirmed and includes relevant production
 concessions:  (iii) the need for  strategic  storage in Italy is defined  explicitly;
 the burden of  strategic  storage is imposed  upon companies  importing  from non-EU
 countries,  which have to provide a strategic  storage  capacity in Italy corresponding
 to 10% of the amount of natural gas imported each year;  (iv) holders of storage
 concessions are required to provide storage  capacity for domestic  production,  for
strategic use and for modulation to eligible users without  discriminations,  where
technically and economically  viable; (v) modulation storage costs are charged to
shippers which have to provide  modulation  services  adequate to the  requirements  of
final  customers;  (vi) storage tariffs criteria are determined by the Authority in order
to ensure a proper return on capital  employed,  taking into account the typical risk
 inherent in upstream  activities as well as volumes  stored for ensuring  peak  supplies
 and  provides  incentives  to capital  expenditure  for the upgrading  of the  system;
 (vii) in the  transitional  period  until  the  publication  of the  Authority&#146;s
decision,  storage  companies  determine  and publish  their own tariffs,  and (viii) the
 Authority  has to establish  the  criteria  and priority of access most  storage
 operators  have to include in their  storage codes.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
compliance with the provisions of article 21 of Decree No. 164/2000,  on October 21, 2001
all storage activities  carried out within the Eni Group were  conferred  to Stoccaggi
 Gas Italia SpA,  which holds ten storage concessions.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
decision No. 26 dated February 27, 2002, the Authority  determined  tariff criteria for
natural gas storage for the first  regulated  period (from April 1, 2002 to March 31,
2006).  The  Authority  determined criteria  on the  basis of the costs of the  service,
 plus a  weighted  average  pre-tax  rate of return of 8.33%.  Tariffs  are  adjusted
 through a price cap  mechanism  that  takes  into  account  inflation  and a
productivity  recovery  of 2.75% per  year.  The  tariff  structure  for  modulation
 consists  of two fixed elements,  one based on the annual  capacity used (space occupied
in the reservoir) and one based on maximum output  capacity  demand for one day in the
year, as well as a variable  element  calculated on the basis of the quantities  entering
and leaving the field. On the basis of these criteria on March 18, 2002,  Stoccaggi Gas
Italia SpA presented  its  suggested  tariffs for cyclical  modulation,  upstream and
strategic  storage services for the first  regulatory  period.  The Authority  rejected
 Stoccaggi Gas Italia  proposal and set storage tariffs for the first regulatory  period
with decision No. 49 of March 26, 2002. In 2002,  Stoccaggi Gas Italia appealed against
both Authority  decisions to the Regional  Administrative  Court of Lombardia in order to
obtain their cancellation . The Regional  Administrative  Court of Lombardia repealed
Stoccaggi Gas Italia&#146;s  appeal with decision of September 29, 2003.  Stoccaggi Gas Italia
appealed to the Council of State against  this  decision on  February 3, 2004.  Pending
the  proceeding,  Stoccaggi  Gas Italia is  currently applying the tariffs set by the
Authority.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decree
No. 625,  as amended by Decree  164,  provides  for the  holders of storage  concessions
 to keep storage  capacity  available  for  upstream,  strategic and  modulation  storage
 functions for the national natural gas system.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 implementation  of Decree 164, the Decree of the Minister of Productive  Activities of
September 26, 2001 defined the criteria for the  determination  and use of strategic
 storage.  The utilization of natural gas volumes held under strategic  storage becomes
 mandatory in case of interruption or reduction of imports from non-EU countries due to
technical and  unpredictable  causes,  in case of emergency on the national gas network,
 in case of  winters  colder  than those  expected  by the  Authority  in its  periodic
 statements concerning the determination of modulation obligations for seasonal
consumption peaks.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
March 14, 2002, the Authority  issued a consultation  document  containing  criteria
 relating to the storage  code that  storage  companies  have to propose.  The
 consultation  document,  among other  things, suggests:  (i) a  preference  order in
 assigning  storage  capacity  which  favours  natural gas  transport companies,  natural
gas distribution  companies as defined by Decree No. 164 article 18, eligible  customers
and other natural gas companies of members States of the European  Union and
 non-members;  (ii)  mechanisms to assign  scarce  storage  capacity  (competitive  bid,
 pro quota or first come first  served);  and (iii) contents of the storage code,  among
which access  criteria to storage  services and criteria of utilization of storage
service.</FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Refining
and Marketing of Petroleum Products</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R<I>efining</I>.
Under Decree No. 112, companies that seek to establish refining operations in Italy
or to expand the capacity of existing refining operations must obtain an operating
concession from the relevant Region, while companies that seek to build or operate
new plants that do not increase refining capacity must obtain an authorization from the
relevant Region. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Service
Stations</I>. Decree No. 32 of February 11, 1998, as amended by Legislative Decree No.
348 of September 8, 1999 and Law Decree No. 383 of October 29, 1999, significantly
changed Italian regulation of service stations. The Decree replaces the system of
concessions granted by the Ministry of Industry, regional and local authorities with
an authorization granted by city authorities. Legislative Decree No. 112/98 confers
the power to grant concessions for the construction and operation of service
stations on highways to Regions. Decree No. 32 also requires that contracts
between license holders and service station operators have a duration of not
less than six years and be drafted in accordance with arrangements agreed by
the relevant trade group of license holders and the union representatives for the
service station operators. Decree No. 32 also provides for: (i) the testing of
compatibility of existing service stations with local planning and environmental
regulations and with those concerning traffic safety to be performed by city
authorities; (ii) upon the closure of at least 7,000 service stations, the option to
extend by 50% the opening hours (currently 52 hours per week) and a generally
increased flexibility in scheduling opening hours; (iii) simplification of
regulations concerning the sale of non-oil products and the permission to perform
simple maintenance and repair operations at service stations; (iv) establishment
of a fund for the restructuring of the sales network, in part financed through a
contribution, in the 1998-2000 period. In 2002 the fund received new financings: the
decree of the Minister of Productive Activities of August 7, 2003, implementing Law
No. 237 of December 12, 2002, defined the amount of euro 0.0003 and euro 0.0001 for each
liter of automotive fuel (gasoline, diesel fuel and LPG) sold in 2002 in the ordinary
distribution network to be paid by authorization holders and service station managers,
respectively. The latest payment date was set at December 31, 2003; (v) the opening up
of the logistics segment by permitting third party access to unused storage
capacity for petroleum products; and (vi) measures designed to increase
competition on the market for LPG for residential, industrial and agricultural
users. With the goal of renewing the Italian distribution network, Law no 57/2001
provides that the Ministry for Productive Activities is to prepare
guidelines for the modernization of the network, and the Regions shall follow those
guidelines in the preparation of regional plans. The Decree was issued on October 31,
2001 and established the criteria for the closing down of incompatible stations,
the approval of the plan, the renewal of the network, the opening up of new
stations and the regulations of the operations of service stations on matters such as
automation, working hours and non oil activities. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Petroleum
Product Prices</I>. Petroleum product prices were completely deregulated in May 1994
and are now freely established by operators. Oil and gas companies periodically report
their recommended prices to the Ministry of Productive Activities and service
station operators, and such recommendations are considered by service station
operators in establishing retail prices for petroleum products. With Ministerial
Decree dated February 16, 2000, an entity was established that supports the
Ministry of Productive Activities in monitoring trends in domestic and international
prices of oil and oil products. Furthermore, in order to avoid initiatives inhibiting
competition, Law No. 57/2001 provides the compliance with EU Regulation No. 2790/1999
concerning &#147;vertical agreements&#148; on economic relations between operators in this area.
Management believes that these developments will not have any significant impact on
Eni&#146;s operations. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compulsory
Stocks</I>. Compulsory stocks imposed by the Ministry of Productive Activity, in line with
the European Directive 98/1993, must be at least equal to the quantities required by
90 days of consumption (net of oil products obtained by domestically produced oil).
In order to satisfy the agreement with the International Energy Agency (Law No.
883/1977), the Legislative Decree of January 31, 2001, No. 22 (implementing EU
directive 98/93/CE which regulates the obligation of member states to keep a
minimum amount of stocks of crude oil and/or petroleum products) increased the level
of compulsory stocks by 10% (this level is to be reached in four years). Legislative
Decree No. 22/2001 states that compulsory stocks are determined each year by a
decree of the Minister of Productive Activities, defining also the coefficients
necessary to determine the breakdown of amounts among the subjects required to keep the
stocks. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decree
No. 32 of February 11, 1998 established an entity  responsible for the maintenance and
management of this  compulsory  reserve  whose main  tasks are to:  (i)  distribute
 stocks on the  national  territory according to available  storage sites and consumption
 levels;  (ii) meet the demand for refined products in case of crisis;  (iii) guarantee
 storage volumes to operators;  and (iv) record demand for refined products in the
various areas of Italy.  The Agency has been created on June 14, 2001;  its by-laws had
been approved with a  Ministerial  Decree of January 29, 2001 and its  operating
 regulation  has been approved on May 20, 2003 by the general  meeting of the genecy&#146;s
 members.  The Minister of Productive  Activities with a decree dated  January 7, 2003,
 defined  the  parameters  for  determining  the  available  capacity of storage and
transmission of mineral oils.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In
2003 Eni owned on average 7.1 million tons of oil  products  inventories,  of which 5.1
million  relating to  &#147;compulsory  stocks&#148; as required by Italian law. The balance is
composed of oil products which cannot be used  to  meet  compulsory  stock  requirements;
 in  particular  0.7  million  tons  related  to  operating inventories  (oil  products
 contained  in  facilities  and  pipelines),  1 million  related to oil products
contained in ships and 0.3 million related to specialty products.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
compulsory stocks are in general composed of oil (34%),  distillates (61%) and fuel oil
(5%). They are located throughout the Italian territory in both refineries (75%) and
storage sites (25%).</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
also held natural gas for strategic  reserve  purposes in its storage  business,  as
 established by Legislative  Decree No. 164 of May 23, 2000.  The strategic  reserves of
gas are defined as &#147;stock  destined to meet situations of  deficit/decrease  of supply or
crisis of the gas system&#148;.  The Ministry of Productive Activities  determines  quantities
 and usage  criteria of such  reserves.  As of December 31, 2003 Eni held approximately
180 billion standard cubic feet of strategic reserves of natural gas.</FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Competition</I></B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="P NBSP" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Like
all Italian  companies,  Eni is subject to Italian and EU competition  rules. EU
competition  rules are set forth in  Articles  81 and 82 of the  Treaty of Rome as
amended  by the  Treaty of  Amsterdam  dated October 2, 1997 and entered into force on
May 1, 1999  (&#147;Article  81&#148; and &#147;Article 82&#148;,  respectively  being the result of the new
 denomination of former Articles 85 and 86) and EU Merger Control  Regulation No. 4064 of
1989 (&#147;EU  Regulation  4064&#148;).  Article 81 prohibits  collusion among  competitors  that
may affect trade among member states and that has the object or effect of restricting
 competition  within the EU. Article 82 prohibits any abuse of a dominant  position
within a substantial  part of the EU that may affect trade among member  states.  EU
 Regulation  4064  sets  certain  limits  for  cross-border  transactions,  above  which
enforcement  authority  rests with the European  Commission  and below which  enforcement
 is carried out by national  competition  authorities,  such as the Antitrust Authority
in the case of Italy. On May 1, 2004, a new  regulation  of the European  Council came
into force (No.  1/2003)  which  substitutes  regulation  No. 17/1962 on the
 implementation  of the rules on  competition  laid down in Articles 81 and 82 of the
Treaty. In order to simplify the procedures  required of undertakings in case of
 concentration,  the new regulation substitutes  the obligation to inform the Commission
 with a declaration  that such  concentration  does not infringe the Treaty.  In
addition,  the burden of proving an  infringement of Article 81(1) or of Article 82 of
the Treaty  shall rest on the party or the  authority  alleging  the  infringement.  The
 undertaking  or association  of  undertakings  claiming the benefit of Article  81(3) of
the Treaty shall bear the burden of proving that the  conditions  of that  paragraph  are
 fulfilled.  The  regulation  defines the functions of Authorities  guaranteeing
 competition  in Member  States and the powers of the  Commission  and of national
courts.  The  competition  authorities of the Member States shall have the power to apply
Articles 81 and 82 of the Treaty in  individual  cases.  For this  purpose,  acting on
their own  initiative or on a complaint, they may take the following decisions:</FONT></P>












    <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2> requiring that an infringement be brought to an end,</font></p></td></tr></table>

<BR>

     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ordering interim measures,</font></p></td></tr></table>

<BR>

    <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2> accepting commitments,</font></p></td></tr></table>

<BR>

     <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=2%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#150; </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>imposing fines, periodic penalty payments or any other penalty provided for in their national law.</font></p></td></tr></table>

<BR>

<!-- MARKER FORMAT-SHEET="Times justify" FSL="Workstation" -->
<div ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>National  courts
 shall have the power to apply  Articles  81 and 82 of the  Treaty.  Where the
 Commission, acting on a complaint  or on its own  initiative,  finds that there is an
 infringement  of Article 81 or of Article 82 of the Treaty,  it may: (i) require the
undertakings  and associations of undertakings  concerned to bring such  infringement  to
an end;  (ii) order  interim  measures;  (iii) make  commitments  offered by undertakings
 to meet the concerns  expressed to them by the Commission  binding on the  undertakings;
 (iv) find that  Article 81 and 82 of the Treaty are not  applicable  to an  agreement
 for  reasons of  Community public interest. </FONT></div>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is also subject to the competition  rules established by the Agreement on the European
Economic Area (the &#147;EEA  Agreement&#148;),  which are  analogous  to the  competition  rules
of the Treaty of Rome and apply to competition  in  the  European   Economic  Area
 (which   consists  of  the  EU  and  Norway,   Iceland  and Liechtenstein).  These
 competition  rules are enforced by the  European  Commission  and the European  Free
Trade Area Surveillance Authority.</FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition,  Eni&#146;s activities are subject to Law No. 287 of October 10, 1990 (the &#147;Antitrust
 Law&#148;). In accordance  with the EU competition  rules,  the Antitrust Law prohibits
 collusion among  competitors  that restricts  competition  within  Italy and  prohibits
 any abuse of a dominant  position  within the  Italian market or a significant  part
thereof.  However,  the  Antitrust  Authority may exempt for a limited  period agreements
 among  companies that otherwise would be prohibited by the Antitrust Law if such
agreements have the effect of improving market  conditions and ultimately  result in a
benefit for consumers.  The Antitrust Authority has intervened on the basis of the
Antitrust Law in several  instances,  particularly  in order to prohibit the  imposition
 of  discriminatory  tariffs in the  telecommunications,  railway and air transport
sectors, among others.</FONT></P>


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<a name="a27"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Property, Plant
and Equipment</I></B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
has freehold and leasehold interests in real estate in numerous countries  throughout the
world, but no one  individual  property is material  to Eni as a whole.  See  &#147;Exploration
 &amp;  Production&#148;  above for a description of Eni&#146;s reserves and sources of crude oil and
natural gas.</FONT></P>



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<a name="a28"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Organizational
Structure</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
significant  subsidiaries,  associated  undertakings  and joint ventures of the Eni Group
controlled directly or  indirectly  by Eni at December 31, 2003 and included in the scope
of  consolidation  as well as Eni&#146;s percentage of equity capital or joint venture
 interest  (rounded to the nearest whole number) are set forth in the table  below.  The
 principal  country of operation  is  generally  indicated by the  company&#146;s country of
incorporation or by its name.</FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><U><B>Company/Undertaking</B></U> </FONT> </TD>
     <TD WIDTH="35%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><U><B>Country of Incorporation</B></U>&nbsp; </FONT> </TD>
     <TD WIDTH="10%" ALIGN="right"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><U><B>%</B></U>&nbsp;&nbsp;&nbsp; </FONT> </TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Exploration &amp; Production</I> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Algeria Production BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Angola Production BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Azerbaijan BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Caspian Sea BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Congo SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Exploration BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Iran BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Karachaganak BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Lasmo Plc </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni North Africa BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni ANS Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Oil Ecuador BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Petroleum Co Inc. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">USA </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni UK Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni AOG Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ieoc Production BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Lukagip NV </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT> </TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50 &nbsp;&nbsp;&nbsp;</FONT> </TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Nigerian Agip Oil Co Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Nigeria </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Norge A/S </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Norway </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Gas &amp; Power</I> </FONT> </TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Greenstream SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">75&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Snam Rete Gas SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50<SUP>(1)</SUP> </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Societ&#224; Italiana per il Gas pA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Adriaplin Doo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Slovenia </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Distribuidora de Gas Cuyana SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Argentina </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas Brasiliano Distribuidora SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Brazil </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Inversora de Gas Cuyana SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Argentina </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Tigaz Rt Tiszantuli Gazszolgaltato R&#232;szvenyt&#224;rsas&#224;g </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ungheria </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EniPower SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD><TD ALIGN=RIGHT><FONT SIZE="1">&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1><SUP>(1)</SUP>As of April 1, 2004</FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT>&nbsp;</TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Refining &amp; Marketing</I> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">AgipRete SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agipfuel SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ecofuel SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Portugal Investment SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Deutschland GmbH </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Germany </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Do Brasil SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Brazil </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Ecuador SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ecuador </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Espana SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Spain </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Fran&#231;aise SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">France </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">American Agip Co Inc. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">USA </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italiana Petroli SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp; </FONT></TD>
        </TR>
<tr>
     <td><FONT SIZE="1">&nbsp; </FONT></td>
</tr>

<TR VALIGN=Bottom>
     <TD  ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Petrochemicals</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dunastyr Polystyrene Manufacturing Company Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Hungary </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa Americas Inc </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">USA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa Benelux SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Belgium </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa Elastom&#232;res France SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">France </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa France Snc </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">France </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeru Europa Handelsgesellschaft mbH </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Germany </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa UK Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Oilfield Services Construction and Engineering</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Saipem SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Snamprogetti SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Consorzio Eni per l&#146;Alta Velocit&#224; - Cepav Uno </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">European Marine Contractors Ltd. </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">United Kingdom </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">75&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Saipem SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">France </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Other Activities</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Syndial SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EniData SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EniTecnologie SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sieco SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">91&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Tecnomare SpA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Corporate and financial companies</I> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni International BV </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Netherlands </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Coordination Center SA </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Belgium </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Societ&#224; Finanziaria Eni SpA&#151;Enifin </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;</FONT></TD>
        </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Societ&#224; Finanziamenti Idrocarburi - Sofid-Spa </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp;&nbsp;&nbsp;  </FONT></TD>
        </TR>
</TABLE>
<BR>


<a name="a29"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 5.  OPERATING
AND FINANCIAL REVIEW AND PROSPECTS</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in
this item should be read together with the Key Information  presented in Item 3 and the
 Consolidated  Financial Statements and related Notes thereto included in Item 18.</I></FONT></P>

<a name="a30"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive
Summary</B> </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 Eni&#146;s net income  amounted to euro 5.6 billion with an increase of nearly euro one
billion over 2002 (up 21.6%).  Operating income increased by euro 1,015 million, or
11.9%.  Despite  significant  capital  expenditures and investments of euro 13.1 billion
(up 38.7% over 2002), leverage<SUP>1</SUP> was 0.48  (0.39 in 2002).  The  trends in the  principal
 market  indicators  contributed  to the  improved results;  however,  the  effects of
the average  increase in oil prices  (Brent was up 3.9  dollars/barrel)  and of the
higher  average European  refining  margins  (up 1.9  dollars/barrel)  were partly
 offset by the almost 20% slide of the dollar  against the euro (the average Brent price
in euro declined by 3.4%).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
year 2003 was marked by the war in Iraq, while the effects of  uncertainties  relating to
the war were already visible in 2002. In 2003 the price of oil peaked to above 35
dollars/barrel.  The progressive  weakening of the dollar created concern in Europe for
its effects on the  competitivity  of exports and growth,  adding a further element of
volatility to the economic and energy  scenario.  In the context of such tension and
uncertainty, Eni succeeded in meeting its growth targets.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the Exploration &amp; Production segment,  hydrocarbon  production amounted to 1,562 KBOE/d,
with a 90 KBOE/d increase, up 6.1% over 2002.  Proved  hydrocarbon  reserves at December
31, 2003 amounted to 7,272 mmBOE,  increasing by 242 mmBOE over 2002. The reserve life
index at December  31, 2003 was 12.7 years (13.2 in 2002).  The most  important  new
 reserves  booked in 2003  concerned  the Kashagan structure in the Kazakh offshore,
 which confirms the relevant mineral  potential of the area operated by Eni, Block 15 (Eni&#146;s
interest 20%) in the deep waters of Angola, the North Sea, the Gulf of Mexico, Indonesia
and the Algerian desert.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the Gas &amp; Power segment,  sales of natural gas in primary distribution amounted to 65.1
billion cubic meters, with a 4.7 billion cubic meters  increase over 2002 (up 7.7%).  In
power  generation,  the first 390 megawatt unit of the Ferrera  Erbognone power station
began production at the end of the 2003.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the  Refining &amp; Marketing  segment,  Eni  continued  the  upgrading  process of its
refining  system.  In retail  marketing  Eni continued the  requalification  and
strategic  repositioning of its distribution  network aimed at seizing the  opportunities
 deriving from  changes in  consumers&#146;  preferences.  In retail  markets  in the rest of
Europe,  Eni&#146;s  selective  development  showed its first results with increasing sales
and a consolidation of market share in target areas.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
expenditure  amounted to euro 8.8 billion and investments to 4.3 billion.  The most
relevant  expenditures  concerned large projects relating to long-term growth and the
sustainability of Eni&#146;s businesses.  Investments  concerned  primarily the Italgas tender
offer (euro 2.6  billion),  the purchase of Fortum  Petroleum,  an upstream  company
 operating in Norway (euro 0.9  billion),  and the purchase of 50% of Union Fenosa Gas
(euro 0.4 billion).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Margin(<SUP>2</SUP>)</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Margin:
 The  difference  between the average  selling  price and direct  acquisition  cost of a
finished  product or raw  material excluding other  production  costs (e.g.  refining
 margin,  margin on distribution of natural gas and petroleum  products or margin of
petrochemicals  products).  Margin  trends  reflect  the  trading  environment  and are,
 to a  certain  extent,  a gauge  of  industry profitability.</FONT></P>


<BR>
<BR>
<BR>
<BR>



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<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">___________________________</FONT></DIV>



<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For
a discussion of leverage and a  reconciliation  with the most directly  comparable  GAAP
 financial  measure,  see &#147;Liquidity and capital resources &#150; Financial conditions below&#148;. </FONT></P></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>This
definition applies to the term margin whenever used in this section. </FONT></P></TD>
</TR>
</TABLE>


<P STYLE="page-break-before:always">


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD VALIGN=TOP ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Trading environment</I></B> </FONT> </TD>
     <TD ALIGN=center colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31, </B></FONT><hr size=1> </TD></TR>
<TR VALIGN=Bottom>
     <TD width=55% ALIGN=LEFT><hr size=1></TD>
     <TD width=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp; </B></FONT><hr size=1> </TD>
     <TD width=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp; </B></FONT><hr size=1> </TD>
     <TD width=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp; </B></FONT><hr size=1> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average price of Brent dated crude oil <SUP>(1)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24.46 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24.98 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28.84 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average price in euro of Brent dated crude oil </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27.30 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26.41 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25.50 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average EUR/USD exchange rate <SUP>(2)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.896 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.946 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.131 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average European refining margin <SUP>(3)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.97 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.80 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.65 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EURIBOR&#151;three-month euro rate % </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.3 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.3 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.3 </FONT></TD></TR>
</TABLE>

<BR>

<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>In
U.S. dollars per barrel. Source: Platt&#146;s Oilgram. </FONT></P></TD>
</TR>
</TABLE>


<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Source:
European Central Bank. </FONT></P></TD>
</TR>
</TABLE>


<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(3)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>In
U.S. dollars per barrel. FOB Mediterranean Brent dated crude oil. Source: Eni
calculations based on Platt&#146;s Oilgram data. </FONT></P></TD>
</TR>
</TABLE>



<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
results of  operations  and the  year-to-year  comparability  of its  financial  results
are affected by a number of external factors which exist in the industry  environment,
 including  changes in oil, natural gas and refined  products  prices,  industry-wide
movements in refining and petrochemical  margins and fluctuations in exchange rates and
interest rates.  Changes in weather  conditions from year to year can  influence  demand
for natural gas and some  petroleum  products,  thus  affecting  results of  operations
of the natural gas business  and, to a lesser  extent,  of the refining and  marketing
 business.  See &#145;&#145;Item 3. Risk  Factors.&#146;&#146;  The trading environment  was mixed in 2003.
The favourable  impact of higher  hydrocarbon  prices and refining  margins over 2002 was
offset by the depreciation of the U.S. dollar versus the euro.  Actual oil prices when
expressed in euro terms declined  slightly over 2002.  Natural gas demand in Italy
 increased by  approximately  nine percent point over 2002 driven by strong growth in the
 thermoelectric  segment. Natural gas margins in Italy  improved due to favourable
 trading  conditions,  related in particular to the impact of the U.S.  dollar
depreciation  versus the euro, whose effects were partly offset by increasing
 competitive  pressure in the domestic natural gas market and by the change in sale mix
due to compliance with regulatory  thresholds  provided for by Legislative Decree no.
164/2000 (see &#147;Item 3 - Risk  Factors&#148;).  In 2003  refining  margins  rebounded  sharply
to more normal  industry  levels as  compared to the  particularly depressed  levels
 registered  in year 2002  which  reflected  a weak  demand  for  refined  products  due
to weak  worldwide  economic conditions.  Margins on distribution of refined products in
Europe benefited from higher levels of efficiency of distribution networks. Petrochemical
 product  margins  suffered from the weak economic  environment  in Europe and
 overcapacity  and came under  pressure as increase in the purchase costs of certain
monomers could not be transferred entirely onto final prices of polymers.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>Key consolidated
financial data</I></B> </FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49,272&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,922&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,487&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,313&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,502&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,517&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,751&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,593&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,585&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net cash provided by operating activities </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,084&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,578&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,827&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditure </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,606&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,048&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,802&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments<SUP>(1)</SUP> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,664&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,366&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,255&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Shareholders&#146; equity including minority interest </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29,189&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28,351&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28,318&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net borrowings<SUP>(2)</SUP> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,888&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,141&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,543&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income per share </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(euro per share) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.98&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.48&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividend per share </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(euro per share) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.750&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.750&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.750&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net borrowings to total shareholders&#146; equity </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">ratio including minority interests (leverage)<SUP>(2)</SUP> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.35&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.39&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.48&nbsp; </FONT></TD></TR>
</TABLE>

<BR>

<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>This
item refers mainly to the acquisition of net equity of other  companies and acquired net borrowings.  In 2003
it includes also the outlay for the tender          offer for Italgas shares (euro 2,569
million). </FONT></P></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>For
a discussion of the usefulness of and a reconciliation of these non-GAAP  financial  measures with the most
directly  comparable GAAP financial measures see &#147;Liquidity and capital resources
&#150; Financial conditions&#148; below. </FONT></P></TD>
</TR>
</TABLE>




<a name="a31"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Critical Accounting
Estimates</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 consolidated  financial  statements of Eni and the related Notes have been  prepared in
accordance  with Eni Group  accounting policies which are in accordance with accounting
 principles  prescribed by Italian law and  supplemented by the accounting  principles
issued by the  Consiglio  Nazionale  dei  Dottori  Commercialisti  e dei  Ragionieri
 (C.N.D.C.R.)  or, in the  absence  thereof and if applicable,  the  International
 Accounting  Standards Board  (I.A.S.B.).  In the absence of indications in said
 principles,  specific criteria for hydrocarbon exploration and production applied
internationally have been followed (collectively &#147;Italian GAAP&#148;).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Italian
GAAP vary in certain significant  respects from generally accepted accounting  principles
applied in the United States. For a summary of the significant  differences  between
Italian  accounting  principles and U.S. GAAP that are relevant to Eni, see &#147;Summary of
Differences  Between Italian  accounting  principles and U.S. GAAP&#148; below and Notes No.
27, 28 and 29 to the Consolidated  Financial Statements. Note No. 29 to the Consolidated
Financial Statements provides certain additional disclosures required under U.S. GAAP.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
 preparation of these  financial  statements  requires  management to apply  accounting
 methods and policies that are based on difficult or subjective judgments,  estimates
based on past experience and assumptions  determined to be reasonable and realistic based
on the  related  circumstances.  The  application  of these  estimates  and  assumptions
 affects  the  reported  amounts of assets and liabilities and the disclosure of
contingent  assets and  liabilities at the balance sheet date and the reported  amounts
of income and expenses  during the  reporting  period.  Actual  results  may differ  from
 these  estimates  given the  uncertainty  surrounding  the assumptions  and conditions
 upon which the estimates are based.  We have  summarized  below our accounting
 estimates that require the more subjective judgment of our management.  Such assumptions
or estimates regard the effects of matters that are inherently  uncertain and for which
 changes in conditions  may  significantly  affect the results  reported in the
 consolidated  financial  statements.  In particular,  the  accounting  methods and
 policies  based on these  assumptions  and  estimates  affect the  recognition  of
assets and liabilities  in the balance  sheet and revenues and expenses in the income
 statement,  as well as net income,  stockholders equity and various financial statements
ratios. However cash flows and liquidity are not affected by such accounting policies and
estimates.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil
and Gas Activities</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs
associated with the acquisition of mineral rights,  including  reserves  purchased in
connection with such  acquisition,  are capitalized.  Mineral rights can also include
exploration  permits,  among other items. Mineral rights are amortized on a straight-line
basis over the expected period of benefit.  Capitalized  costs  associated  with proved
reserves are amortized on a  Unit-of-Production (UOP)  basis,  while  capitalized
 acquisition  costs  related to all other  reserves are not  amortized  until  classified
 as proved. Capitalized costs related to abandoned drilling programs are expensed.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs
 associated  with  exploratory  activities for oil and gas producing  properties are expensed as incurred for financial reporting purposes.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs
incurred in development activities (acquisition of concessions,  drilling of wells and
their completion before production, as well as plant and  equipment  necessary  for
 production,  etc.) are  capitalized  and  amortized  on a UOP  basis.  Costs  related
 to unsuccessful developmental wells are expensed immediately as loss on disposal.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
regularly  accrues costs expected to be incurred with respect to eventual well
 abandonment,  including  costs  associated with site restoration, on a UOP basis.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Engineering
 estimates of the Company&#146;s oil and gas reserves are inherently  uncertain;  the accuracy
of any reserve  estimate is a function of the quality of available  data and  engineering
 and  geological  interpretation  and  judgement.  There are  authoritative guidelines
 regarding the engineering  criteria that have to be met before estimated oil and gas
reserves can be designated as &#147;proved&#148;.  Proved  reserves are the
estimated  volumes of crude oil,  natural gas and gas  condensates,  liquids and
associated substances which  geological and engineering  data  demonstrate with
reasonable  certainty to be recoverable in future years from known reservoirs under
existing  economic and operating  conditions.  Proved reserves  include:  (i) developed
 proved  reserves:  amounts of hydrocarbons  that are expected to be retrieved  through
existing wells,  facilities and operating  methods;  (ii) non developed proved reserves:
 amounts of  hydrocarbons  that are expected to be retrieved  following new drilling and
 facilities.  Proved reserves do not include probable or possible reserves. See also &#147;Item
3 &#150; Risk factors &#150; Uncertainties in estimates of oil and natural gas reserves&#148;.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results
of drilling,  testing and production after the date of the estimate may require
 substantial  upward and downward revision. In  addition  changes in oil and  natural
 gas prices  could have an effect on the value of Eni&#146;s  proved  reserves.  Accordingly,
 the estimated reserves could be materially different from the quantities of oil and
natural gas that ultimately will be recorded.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Despite
the inherent  imprecision in these engineering  estimates,  estimated proved reserves are
used in determining  depreciation and depletion  expenses and impairment  expense.
 Depreciation  rates on oil and gas assets using the UOP basis are determined from the
ratio between the amount of hydrocarbons  extracted in the year and proved  developed
 reserves  existing at the year-end  increased by the amounts  extracted  during the
year.  Therefore,  assuming all other variables are held constant,  an increase in
estimated  proved reserves  decreases  depreciation,  depletion and  amortization
 expense.  On the  contrary,  a decrease in estimated  proved  reserves increases
depreciation, depletion and amortization expense. The UOP rate is then applied to the
costs capitalized.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Also,
estimated proved reserves are used to calculate future cash flows from oil and gas
operations  properties,  which serve as an indicator in determining whether a property
 impairment is to be carried out or not. The larger the volumes of estimated reserves,
 the less likely the property is impaired.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment
of Assets</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed
 assets are  written  down  whenever  events and  changes  in  circumstances  indicate
 that the  carrying  amount may not be recoverable.  Eni calculates the writedown as the
difference between the expected  accumulated  discounted cash flow and the book value of
the asset.  According to Italian  GAAP,  when the  circumstances  causing an  impairment
 cease to exist,  Eni  reverses  previously recorded impairment charges net of
depreciation.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
oil and natural gas  properties,  the expected  future cash flows are estimated  based on
developed  and non  developed  proved reserves  including,  among other  elements,  the
cost for  closure  and  abandonment  of wells,  production  taxes and the costs to be
incurred  for the  reserves  yet to be  developed.  The  estimated  future level of
 production  is based on  assumptions  about future commodity prices, lifting and
development costs, field decline rates, market demand and supply,  economic regulatory
climates and other factors.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset
Retirement Obligations</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
has  significant  obligations to remove tangible  equipment and restore land or seabed
once operations are terminated.  Removal and restoration  obligations are primarily
 associated with plugging and abandoning  wells and removal and disposal of offshore oil
and gas platforms  around the world. The estimated  undiscounted  costs, net of salvage
value, of dismantling and removing these facilities are accrued over the productive  life
of the asset.  Estimating the future asset removal costs is difficult and requires
 management to make  estimates and  judgements  because most of the removal  obligations
 are many years in the future and  contracts and  regulations often have vague
descriptions of what constitutes removal.  Asset removal  technologies and costs are
constantly  changing,  as well as political,  environmental,  safety and public relations
considerations.  Future changes in asset removal technologies and costs as well as
political, environmental, safety and public relation considerations could have a material
impact of financial statements.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business
Acquisitions</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Accounting
 for the  acquisition of a business  requires the allocation of the purchase price to
various assets and  liabilities of the acquired  business.  For most assets and
liabilities,  purchase price allocation is accomplished by recording the asset or
liability at its estimated fair value. The most difficult  estimations of individual fair
values are those involving  property,  plant and equipment and identifiable  intangible
assets. We use all available  information to make these fair value  determinations and,
for major business acquisitions,  typically  engage an  outside  appraisal  firm to
assist in the fair  value  determination  of the  acquired  long-lived assets.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni
 capitalizes  goodwill  and  amortizes  it over its  useful  economic  life,  which  is
not to  exceed  20  years  from the date of acquisition.  The  assessment of useful
 economic life involves  management  making  judgments and  assumptions  over the nature
of the acquired  business,  the  economic  environment  in which it  operates,  and the
period of time over which the value of the business is expected  to exceed the value of
assets.  Different  assumptions  and  judgments  may lead to a  different  amortization
 charge  being recognized in income during the period.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental
Liabilities</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Together
with other companies in the industries in which it operates,  Eni is subject to numerous
EU, national,  regional and local environmental  laws and regulations  concerning its oil
and gas operations,  productions and other  activities,  including  legislation that
implements international conventions or protocols. See also &#147;Item 4 &#150; Environmental
Matters&#148;.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Environmental
 expenditures  are made in order to  prevent,  reduce,  repair or  control  the
 environmental  impact of  production activities.  Reserves for  environmental
 contingencies  are established  when it becomes probable or certain that a liability has
been incurred and the amount can be reasonably estimated.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
 management,  considering the actions already taken, the insurance policies to cover
environmental risks and provision for risks accrued,  does not expect any material
adverse effect upon Eni&#146;s results of operations and financial  position as a result of
its compliance  with such laws and  regulations,  there can be no  assurance  that  there
will not be a  material  adverse  impact on Eni&#146;s results of operations and financial
position due to: (i) the possibility of as yet unknown  contamination;  (ii) the results
of ongoing surveys;  (iii) the possible effect of future environmental  legislations and
rules; (iv) the effect of possible  technological changes relating to future remediation;
 and (v) the possibility of litigation and the difficulty in determining Eni&#146;s
liabilities,  if any, as against other potentially responsible parties with respect to
such litigation and the possible insurance recoveries.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingencies</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to accruing the estimated costs for asset  retirement  obligation and
 environmental  liabilities,  Eni accrues for all probable and estimable  contingencies.
 These other  contingencies  are primarily  related to  litigation  and tax issues.
 Determining appropriate  amounts for accrual is a complex estimation process that
includes subjective  judgements.  Eni reviews these contingencies on at least a quarterly
basis to determine if new accruals need to be recorded or if adjustments to existing
accruals need to be made.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recent
accounting pronouncements</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
Note 29 to the Consolidated Financial Statements for information about recent accounting
pronouncements.</FONT></P>



<a name="a32"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Principles of
Consolidation</B></FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a description of Eni&#146;s principles of consolidation  see Notes to the Consolidated
 Financial  Statements&#151; Note 2 &#147;Principles of consolidation&#148;.</FONT></P>


<P STYLE="page-break-before:always">


<a name="a33"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Results of
Operations</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Three
Years ended December 31, 2003</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth a summary of Eni&#146;s income  statement for the periods  indicated.
 All  line-items  included in the table below are derived from consolidated financial
statements prepared in accordance with Italian GAAP.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Year
ended December 31,</B> </FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=center colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48,925&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,922&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,487&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other income and revenues<SUP>(1)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,080&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">913&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Total revenues </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49,846&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49,002&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52,400&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating expenses </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(34,679) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(34,996) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4,771) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,504) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,151) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,396&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,502&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,517&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net financial income (expense) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(259) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(167) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(154) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income (expense) from investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(216) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(17) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Income before extraordinary income and income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,378&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,346&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net extraordinary income (expense)<SUP>(2)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,837&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(29) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Income before income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,758&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,349&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,395&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,530) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,127) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,241) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Income before minority interest </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,228&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,222&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,154&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Minority interest </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(477) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(629) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(569) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD valign=top ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,751&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,593&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,585&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Div Just" FSL="Workstation" -->
<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">______________________________</FONT></DIV>


<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes,
 among other things,  contract  penalties,  income from contract  cancellations,  gains
on disposal of mineral rights and     other fixed assets, compensation for damages and
indemnities and other income. </FONT></P></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Gross
of income tax. </FONT></P></TD>
</TR>
</TABLE>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth certain income statement items as a percentage of net sales from
operations for the periods indicated.</FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=center colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating expenses </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">70.9% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">73.0% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">73.3% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.8% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.5% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.0% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21.2% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.7% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18.5% </FONT></TD></TR>
</TABLE>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
from sales of products are recognized upon transfer of title. In particular, revenues are
recognized:</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1) for natural gas,
when the natural gas leaves Eni&#146;s distribution network and is delivered to the customer;<BR>2)
for crude oil, generally upon shipment;<BR>3) for petroleum products sold to retail
distribution networks, generally upon delivery to the service stations, whereas all other
sales are generally recognized upon shipment from Eni&#146;s plants; and,<BR>4) for chemicals,
generally upon shipment.<BR>In all instances where revenue is recognized upon shipment,
all risk of loss is transferred to the buyer upon shipment.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues  from natural
gas and crude oil  production  from  properties in which Eni has an interest  together
with other  producers are recognized  based on actual  quantities  produced  and sold on
Eni&#146;s  behalf  (sales  method).  Differences  between  Eni&#146;s net working interest  volume
 and  actual  production  volumes  are not  significant.  Revenues  related to long term
 construction  contracts  are recognized  using the  percentage-of-completion  method
 measured on the  cost-to-cost  basis.  Provisions  for  anticipated  losses on long-term
contracts are recorded in full when such losses become evident.<BR>Revenues  related to
amounts in excess of the original  contract price due to the incurrence of  unanticipated
 additional  costs (i.e. Eni claims against third  parties),  are recognized when it is
probable that the claim will result in additional  contract  revenue and the amount of
the claim can be reasonably estimated.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Costs are recognized
when the related goods and services are sold,  consumed or allocated,  or when their
future useful lives cannot be determined.<BR> Eni is party to certain  Production  Sharing
 Agreements  whereby taxes are settled by joint  venture  partners  which are
 state-owned entities in the name and on behalf of Eni out of reserves  produced.  The
Company records such income taxes owed by Eni but paid on its behalf in revenues and
income tax expense.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2003
compared to 2002. </I>Eni&#146;s net income in 2003 was euro 5,585 million, with a increase of
euro 992 million over 2002, up 21.6, due essentially to a positive operating performance
(up euro 1,015 million) related to an increase in hydrocarbon production sold and in
natural gas volumes sold, higher international oil prices (Brent up 15.5%) and
refining margins in dollars, whose effects were offset in part by the 19.6% decline of
the dollar over the euro, which had an estimated negative impact on operating income
of euro 1,100 million. The increase in net income was also caused by: (i) a reduction
in minority interest in net income resulting from the tender offer for Italgas shares
(euro 124 million); (ii) higher net extraordinary income (euro 78 million), related in
particular to the effect of the settlement of a dispute with Edison SpA concerning the
Enimont joint venture (euro 200 million). These positive factors were partly offset by
higher income taxes (euro 114 million). </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003,  streamlining  and  efficiency  improvement  continued and allowed cost savings
 amounting to about euro 590 million (on a constant exchange rate basis).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002
compared to 2001. </I>Eni&#146;s a net income in 2002 was euro 4,593 million, with a decrease
of euro 3,158 million over 2001, down 40.7%, due to: (i) a euro 1,894 million decrease
in operating income (down 18.2%) related in particular to lower refining margins
(Brent down 59.4%) and lower natural gas realization prices, a change in the
supply/sale mix and lower volumes sold in natural gas primary distribution, as well
as higher asset impairment; these negative factors were offset in part by higher
international oil prices and improved oil production mix (overall oil realization
prices were up 5.2%), increased hydrocarbon production sold (up 4.7%) and lower costs;
(ii) lower net extraordinary income (euro 1,766 million) due to lower gains on
disposal of assets (down euro 3,216 million), the effects of which were offset in part
by lower restructuring charges, in particular in Petrochemicals. These negative
changes were partly offset by lower income taxes (euro 402 million), due in
particular to a decrease in income before income taxes and lower net financial expense
(euro 128 million). </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Analysis
of the line items of the income statement:</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)
Revenues</I></B> </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
total revenues were euro 52,400,  49,002 and 49,846 million in 2003, 2002 and 2001,
 respectively.  Total revenues consist of net sales from  operations and other income and
revenues.  Eni&#146;s net sales from operations  amounted to euro 51,487,  47,922 and 48,925
million in 2003, 2002 and 2001,  respectively,  and its other income and revenues
totalled euro 913, 1,080, and 921,  respectively,  in these periods.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth, for the periods indicated,  the net sales from operations
 generated by each of Eni&#146;s business segments including intersegment sales, together with
consolidated net sales from operations.</FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD>
     <TD ALIGN=RIGHT COLSPAN=3><FONT SIZE="1">&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,960&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,877&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,746&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,098&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,297&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,068&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22,083&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,546&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22,148&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,761&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,516&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,487&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,114&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,546&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,306&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">695&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,555&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,302&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">457&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">638&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Consolidation adjustment(1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(11,786) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(12,872) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(12,208) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48,925&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,922&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,487&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>


<BR>


<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Intersegment
 sales are included in net sales from  operations in order to give a more  meaningful
 indication as to the volume of the activities to which sales from operations by segment
may be related.  The most substantial  intersegment  sales are recorded by the
Exploration &amp; Production  segment.  See Note 24 to the  Consolidated  Financial
 Statements  for a breakdown of  intersegment  sales by segment for the three reported
years. </FONT></P></TD>
</TR>
</TABLE>


<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)  </FONT></TD>
<TD><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp; </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>As
compared to 2002, in 2003 Eni&#146;s activities have been grouped by segment differently: </FONT></P></TD>
</TR>
</TABLE>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>- Syndial (former
EniChem) has been now included in the &#147;Other  activities&#148;  segment,  which includes all
Eni companies not included in specific segments (such as, among others, EniData, Sieco,
Tecnomare, EniTecnologie, Eni Corporate University, AGI); <BR> - the new  &#147;Corporate  and
 financial  companies&#148;  segment has been  created,  which  includes Eni  Corporate,
 Sofid and the financial companies formerly included in the &#147;Other Activities&#148; segment.<BR>
Data for 2002 have been reclassified for comparability. Prior year data have not been
reclassified as it is impracticable to restate segment information for earlier period.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2003
compared with 2002. </I>Eni&#146;s net sales from operations for 2003 amounted to a record euro
51,487 million record level, with an increase of euro 3,565 million over 2002, up 7.4%,
due mainly to increased hydrocarbon production sold and increased natural gas
volumes sold, as well as higher activity levels in the Oilfield Services, Construction
and Engineering segment. This increase was due also to higher prices of products in all
Eni segments, largely offset by the appreciation of the euro over the dollar, which
had an impact of about euro 1.9 billion. </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 generated by the  Exploration  &amp; Production  segment  (euro 12,746  million)  declined
by euro 131 million,  down 1%, due essentially to the  appreciation  of the euro over the
dollar,  lower storage  tariffs (see  Operating  Income) and the transfer of the natural
gas trading  contracts  (1.70 billion cubic meters in 2002) to the Gas &amp; Power segment
with effect from January 1, 2003.  These negative  factors were  partially  offset by
higher  hydrocarbon  production  sold (32.9 mmBOE,  up 6.3%) and higher  prices in
dollars realized on hydrocarbons (oil up 16.6%, natural gas up 15.8%).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
generated by the Gas &amp; Power segment (euro 16,068 million)  increased by euro 771
million,  up 5%, due essentially to: (i) increased  natural gas volumes sold in primary
 distribution  (4.68 billion  cubic  meters,  up 7.7%; of which 1.5 billion cubic meters
related to the  contracts  managed in 2002 by the  Exploration  &amp;  Production  segment);
 (ii) higher  average  prices for natural gas, related to the trends of certain oil-based
 parameters to which natural gas prices are indexed,  offset in part by the declines
related to the  appreciation of the euro over the dollar and to contract  renewals (in
particular  with  wholesalers).  These positive  factors were  partially  offset by the
change in the sales mix related to the higher  share of sales in the rest of Europe due
to the  ceilings on Italian sales imposed by Legislative Decree No. 164/2000.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 generated by the Refining &amp; Marketing segment (euro 22,148 million) increased by euro
602 million,  up 2.8%,  essentially due to higher  international  prices for refined
 products  (prices of gasoline and diesel fuel were up 18.9% and 24.4%,  respectively)
and to higher resales of oil (4.0 million tonnes,  up 15%),  these effects were offset in
part by the appreciation of the euro over the dollar,  by a decline in sales to
 petrochemical  industries  and other sales in Italy (a total of 2.05  million  tonnes),
 also due to lower product  availability  related to the contribution of the Priolo
refinery to Erg Raffinerie  Mediterranee Srl in October 2002 and the standstills of the
Gela refinery and lower wholesale sales (0.29 million tonnes, in particular of fuel oil).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
generated by the Petrochemical  segment (euro 4,487 million) decreased by euro 29
million,  down 0.6%, due mainly to lower volumes sold (down 4.1%),  partially  offset by
the 4.8%  increase in the average  selling  prices of products (in  particular in basic
petrochemicals).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
from the Oilfield Services, Construction and Engineering segment (euro 6,306 million)
increased by euro 1,760 million, up 38.7%, due to increased activity levels, also
related to the purchase in July 2002 of Bouygues Offshore (now Saipem SA) in the
<I>oilfield services and construction </I>area. </FONT> </P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 generated by the Other activities  segment (euro 1,302 million)  decreased by euro 253
million,  down 16.3% due mainly to the decline registered at Syndial as a consequence of
closure/sale of businesses.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 generated  by  Corporate  and  financial  companies  (euro 638 million)  increased  by
euro 181  million,  up 39.6%,  due essentially to the invoicing of expenses to other Eni
segments  following the centralization of IT, telecom,  personnel  management and goods
and service purchase activities by Eni Corporate.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002
compared with 2001. </I>Eni&#146;s net sales from operations (revenues) for 2002 amounted
to euro 47,922 million, declining by euro 1,003 million, down 2.1% over 2001, due
mainly to lower natural gas realization prices and lower prices for the main downstream
products, the change in the sale mix and lower volumes sold in natural gas primary
distribution, as well as the effects of the appreciation of the euro against the U.S.
dollar. These negative effects were offset in part by an increase in international
oil prices and improved oil production mix, higher hydrocarbon production sold and
higher activity levels in the Oilfield Services Construction and Engineering segment. </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 generated by the Exploration &amp; Production  segment (euro 12,877 million)  declined
by euro 1,083 million,  down 7.8%, due essentially to lower natural gas  realization
 prices (down 11.1%),  the  appreciation  of the euro over the dollar (up 5.6%) and lower
volumes of purchased  hydrocarbons  marketed (down 51 mmBOE) due mainly to the transfer
of the natural gas trading  activity to the Gas &amp; Power  division.  These negative
 factors were partially  offset by higher  international  oil prices and improved oil
production mix (overall oil realization prices were up 5.2%) and higher hydrocarbon
production sold (23.4 mmBOE, up 4.7%).</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues
 generated by the Gas &amp; Power segment (euro 15,297  million)  declined by euro 801
million,  down 5%, due  essentially  to lower prices for natural gas, the effects of
which were partially  offset by the transfer of the natural gas trading  activity from
the Exploration &amp; Production division.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues generated by the
Refining &amp; Marketing segment (euro 21,546 million) declined by euro 537 million,
 down 2.4%,  essentially due to lower prices for refined products (the retail prices of
gasoline and diesel fuel were down 5.9% and 8.7%,  respectively)  and to reduced sales
volumes on both the retail and wholesale  market in Italy (overall 1.1 million tonnes,
 down 4.8%),  due to the effect of closures/sales of service stations and lower gasoil
sales on wholesale markets.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues  generated by the
Petrochemical  segment (euro 4,516 million)  decreased by euro 245 million,  down 5.1%,
due mainly to an 8.1% fall in the average  selling  prices of  products  and the
 transfer  of certain  plants to the Other  activities  segment.  These negative factors
were partly offset by the entry into scope of consolidation of Polimeri Europa.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Revenues from the Oilfield
Services  Construction and Engineering  segment (euro 4,546 million) increased by euro
1,432 million, up 46%, due to increased activity levels also in connection with the
purchase of Bouygues Offshore.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Operating Expenses</I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the
components of Eni&#146;s operating expenses for the periods indicated.</FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN=3 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchases, services and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31,828&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31,893&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34,566&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Payroll and related costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,851&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,103&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,166&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Operating expenses </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34,679&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34,996&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37,732&nbsp; </FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2003 compared with 2002.
</I>Operating expenses (euro 37,732 million) increased by euro 2,736 million over 2002,
up 7.8% due mainly to: (i) higher natural gas volumes purchased by primary
distribution; (ii) higher supply costs in dollars of natural gas and oil-based and
petrochemical feedstocks, whose effects were offset in part by the depreciation of
the dollar over the euro; (iii) higher activity levels in the Oilfield Service,
Construction and Engineering segment, also related to the purchase of Bouygues
Offshore. These negative factors were offset in part by the effect of the
conversion of financial statements denominated in currencies other than the euro
and streamlining and efficiency improvement measures. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll and related costs (euro
3,166 million)  increased by euro 63 million,  up 2%, mainly due to an approximately
 2.7% increase in unit labor cost in Italy and higher activity levels in the Oilfield
 Services,  Construction and Engineering  segment related to the purchase of Bouygues
Offshore.  These effects were offset in part by an approximately  1,800 decline in the
average number of employees in Italy, resulting from the streamlining  initiatives
undertaken and from the sale of businesses,  and the effect of the conversion of
financial statements denominated in currencies other than the euro.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An expense of euro 6 million
 related to stock grants and options  granted in 2003 to managers of Eni, Saipem SpA and
Snam Rete Gas SpA was  included  in payroll  costs.  The cost of  granted  options  was
 determined  based on their  fair  value  (see  &#147;Notes to the consolidated  Financial
 Statements - Note no. 2 - Summary of  significant  accounting  and  reporting  policies
- - Change in accounting principles&#148;).  The  difference  between the book value and the
fair value of shares issued in the stock grant plan resulted in a euro 3 million
devaluation of treasury shares allocated to the stock grant plan. This devaluation was
recognized as a loss on investments.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002 compared with 2001.
</I>Operating expenses (euro 34,996 million) increased by euro 317 million, or 0.9%
over 2001 due to salary increases and inflation as well as increases due to higher
activity levels, acquisitions and the consolidation of Polimeri Europa. This was
partly offset by lower supply costs for natural gas, cost reductions resulting from
streamlining and increased efficiency and the effect of the appreciation of the euro
over the dollar. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payroll and related costs (euro
3,103 million) increased by euro 252 million,  up 8.8%, mainly due to the consolidation
of Polimeri Europa and Saipem SA (the new name of Bouygues  Offshore) in the Oilfield
 Services and Engineering  segment and an approximately  3.8% increase in unit labor cost
in Italy.  These factors were offset in part by an  approximately  2,400  decline in the
average  number of employees in Italy resulting from the streamlining initiatives
undertaken.</FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Depreciation,
Amortization and Writedowns</I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth a
breakdown of depreciation, amortization and writedowns by business segment for the
periods indicated.</FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production<SUP>(1)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,163&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,552&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,133&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">500&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">417&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">533&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">508&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">490&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">493&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">251&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">125&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">125&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">203&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">267&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">271&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">54&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">101&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total of depreciation and amortization </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,671&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,962&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,710&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">542&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">441&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,771&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,504&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,151&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Hang Size 1" FSL="Workstation" -->
<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman" SIZE="1"><SUP>(1)</SUP> </FONT> </TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman" SIZE=1>Exploration
expenditures of euro 757, 865 and 632 million are included in these amounts relative to
the years 2001 2002 and 2003, respectively. </FONT></P></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>2003 compared with 2002.
</I>Depreciation, amortization and writedown charges (euro 5,151 million) decreased by euro
353 million over 2002, down 6.4%. Depreciation and amortization charges (euro 4,710
million) declined by euro 252 million due the decline registered in particular in the
Exploration &amp; Production segment (euro 419 million) related to the effect of the
appreciation of the euro over the dollar in the conversion of financial statements of
subsidiaries denominated in currencies other than the euro and lower exploration costs
(euro 145 million on a constant exchange rate basis), offset in part by higher
development amortization charges related to higher production (euro 245 million). This
decline was offset in part by the increases registered in: (i) the Gas &amp; Power segment
(euro 116 million) due mainly to the writedown of the difference between the purchase
cost of Italgas shares acquired in a tender offer and the underlying net book value (euro
91 million); (ii) the Corporate and financial companies segment (euro 41 million) due
essentially to the recognition in the income statement of the cost of the Eni Slurry
Technology project (euro 45 million in 2003, euro 12 million in 2002). Depreciation and
amortization charges in the Refining &amp; Marketing segment were substantially unchanged:
the effects of the contribution of the Priolo refinery in October 2002 (See &#147;Item 4 &#150; Refining&#148;)
were offset by the coming onstream of new capital expenditure in the upgrade of Eni&#146;s
distribution network and the purchase of service stations in the rest of Europe and
higher depreciation and amortization charges on highway service stations due to the
adjustment of their useful lives to the residual life of concessions. Writedowns (euro
441 million) declined by euro 101 million and concerned essentially the impairment of
assets: (i) in the Exploration &amp; Production segment (euro 227 million) in particular in
the United Kingdom, Pakistan and the United States; (ii) in the Petrochemical segment
(euro 122 million) ; (iii) in the Other activities segment (euro 57 million); (iv) in the
natural gas distribution business in Brazil (euro 30 million). The amortization of the
difference between the purchase price and the net book value of recently purchased
companies (Italgas, Bouygues Offshore and Lasmo) non allocated to assets/liabilities
amounted to euro 102 million. Including also the amortization of the goodwill of
purchased companies accounted for under the equity method (euro 119 million in the
aggregate, including in particular Galp Energia, GVS and Uni&#243;n Fenosa Gas) recognized in
the income statement under the item balance of net income and expense from investments,
the overall effect of goodwill amortization amounted to euro 221 million. </FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>2002 compared with 2001.
</I>Depreciation, amortization and writedown charges (euro 5,504 million)
increased by euro 733 million, up 15.4% over 2001, mainly due to the increases in the
Exploration &amp; Production segment, resulting from increased production and higher
exploration activity, and higher asset impairment (euro 442 million). Asset impairment
concerned in particular mineral assets in the Exploration &amp; Production segment (euro 332
million), petrochemical plants (euro 105 million) and natural gas distribution assets in
Brazil and Argentina (euro 93 million). </FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>d) Operating Income by
segment</I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">The table below sets forth Eni&#146;s
operating income by business segment for the periods indicated.</FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,984&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,175&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,746&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,672&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,244&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,627&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">985&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">321&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">583&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(332) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(126) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(176) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">255&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">298&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">311&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(201) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(279) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(168) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(209) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(295) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,396&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,502&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,517&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth, for
each of Eni&#146;s principal business segments, operating income as a percentage of such
segment&#146;s net sales from operations (including intersegment sales) for the periods
indicated.</FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42.9% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40.2% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">45.1% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22.8% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21.2% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22.6% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.5% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.5% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.6% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7.0%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2.8%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3.9)% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8.2% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.6% </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.9% </FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration &amp; Production.
</I></B>Operating income in 2003 amounted to euro 5,746 million increasing by euro 571 million
over 2002, up 11%, due mainly to: (i) an increase in average realization prices in
dollars (oil up 16.6%; natural gas up 15.8%); (ii) increased hydrocarbon production sold
(32.9 mmBOE, up 6.3%); (iii) lower exploration costs (euro 145 million, assuming no
variations in exchange rates) and lower asset writedowns (euro 105 million); (iv) lower
costs related to synergies obtained, streamlining and efficiency improvement actions.
These positive factors were offset in part by: (i) the appreciation of the euro over the
dollar; (ii) the effect of the application of tariffs imposed by the Authority for
electricity and gas with decisions No. 26/2002 and No. 49/2002 for storage services
rendered to the Gas &amp; Power segment (in 2002 pending the outcome of Eni&#146;s claim, services
were paid according to earlier tariffs &#150; see &#147;Item 4 &#150; Exploration &amp; Production &#150; Storage
activities&#148;); (iii) the fact that in 2002 gains on the sale of assets were recorded for
euro 92 million as part of Eni&#146;s portfolio streamlining program. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income in 2002
totaled euro 5,175 million, representing a euro 809 million decrease over 2001, down
13.5%, due mainly to: (i) lower natural gas realization prices (down 11.1%); (ii) higher
mineral asset impairment (euro 244 million) in particular in the North Sea and in the
Gulf of Mexico; (iii) the effect of the appreciation of the euro over the dollar (up
5.6%); (iv) a decrease in storage and modulation tariffs due to the effects of decision
No. 49/2002 of the Authority for Electricity and Gas (euro 144 million); and (v) higher
exploration costs (euro 94 million). These negative factors were offset in part by: (i)
higher international oil prices and improved oil production mix (overall oil realization
prices were up 5.2%); (ii) increased hydrocarbon production sold (23.4 mmBOE, up 4.7%);
(iii) gains on disposal of assets (euro 92 million); and (iv) cost reductions related to
synergies deriving from the integration of purchased companies and streamlining (euro 154
million).</FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Gas &amp; Power</I></B>. Operating income
in 2003 amounted to euro 3,627 million, increasing by euro 383 million over 2002, up
11.8%, due mainly to: (i) increased volumes sold in primary (4.68 billion cubic meters,
up 7.7%) and secondary distribution outside Italy (0.65 billion cubic meters, up 17.2%),
whose effects were offset in part by a change in the sales mix due to a higher share of
sales in Europe related to the compliance with the ceilings1 set on sales in Italy by
Legislative Decree No. 164/2000; (ii) higher margins in primary distribution, essentially
related to the improved price environment due to the appreciation of the euro over the
dollar, whose effects were offset in part by the renewal of contracts, and higher margins
in secondary distribution; (iii) the fact that in 2002 a euro 40 million expense was
recorded as a balance of the payment of an environmental tax levied by the Sicilia Region
(euro 86 million; in December 2002 Eni suspended the payments; see Note 23 to the
Consolidated Financial Statements&#150; Legal Proceedings) as well as writedowns of assets in
secondary distribution in Argentina (euro 28 million) and a euro 74 million income
relating to tariff adjustments for 2001 resulting from decision No. 122/2002 of the
Authority for electricity and gas in secondary distribution; (iv) lower writedowns (euro
35 million) in natural gas distribution activities in Brazil; (v) lower costs related to
streamlining and efficiency improvement actions. These positive factors were offset in
part by: (i) the writedown of the difference between the purchase cost of Italgas shares
acquired in a tender offer and the underlying net book value (euro 91 million); (ii)
lower income related to the reversal of risk reserves (euro 67 million); (iii) the
decline in the operating income generated by electricity generation activities (euro 19
million) due essentially to start-up costs, the planned maintenance standstill of the
Taranto plant and the writedown of transmission lines at Ravenna and Gela (euro 4
million). The increase in operating income generated by the start-up of the first 390
megawatt unit at the Ferrera Erbognone power station was offset by the change in sales
mix and higher costs of fuels. </FONT> </P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income in 2002
amounted to euro 3,244 million, a euro 428 million decrease over 2001, down 11.7%, due
mainly to: (i) a decline in results of primary distribution related to a change in the
sales mix with higher share of sales in Europe due to ceilings set by Legislative Decree
No. 164/2000, a change in the supply mix and lower sales (1.20 billion cubic meters, down
1.9%); (ii) asset impairment in the distribution of natural gas in Brazil and Argentina
(euro 93 million) due to lower profitability prospects; (iii) the payment of the
environmental tax established by the Sicilia Region with Regional Law No. 21 of March 26,
2002 (euro 86 million); and (iv) lower results in the power generation activity resulting
from lower sale margins mainly due to the expiration of tax incentives on certain sale
contracts for the Livorno and Taranto power stations. These negative factors were offset
in part by the positive effect of the application of decision No. 122/022 of the
Authority for Electricity and Gas (euro 74 million related to 2001) and lower costs (euro
58 million) related to efficiency improvement actions, in particular in transport
activities in Italy, which were partly offset by salary increases and inflation.</FONT></P>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>Refining and Marketing</I></B>.
Operating income in 2003 amounted to euro 583 million, a euro 262 million increase
over 2002, up 81.6%, due essentially to: (i) improved results in refining activities
related mainly to a recovery in refining margins (Brent margin was up 1.9
dollars/barrel), whose effects were offset in part by the appreciation of the euro
over the dollar; (ii) higher operating results in marketing in Italy and the rest of
Europe; (iii) lower costs resulting from streamlining and efficiency improvement
actions; (iv) the release of the LIFO reserve related to withdrawals from stocks
(euro 37 million), whose effects were offset in part by the fact that in 2002 stocks
were revaluated for euro 13 million. These positive factors were offset in part by:
(i) a decline in operating results in marketing activities in Brazil related to lower
margins on LPG; (ii) lower processing related to standstills at the Taranto and
Sannazzaro refineries that prevented the company to take full advantage of an improved
refining scenario in the first quarter, and of the Gela refinery, offset only in part
by higher processing at the Milazzo, Venice and Taranto refineries in the second half
of the year; (iii) the recording of higher charges for environmental risks (euro 25
million). </FONT> </P>




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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating income in 2002
amounted to euro 321 million, a euro 664 million decrease over 2001, down 67.4%, due
mainly to: (i) a sharp decline in refining margins reflecting the unfavorable trading
environment (Brent margin was down 59.4%), related to weak demand, a reduction in FOB/CIF
differentials on products that reduced the advantage of refineries based near end
markets, and the appreciation of the euro over the dollar; (ii) lower margins on
oxygenates (MTBE and methanol) related essentially to lower international prices of
products; (iii) the fact that in 2001 the positive effect of a decrease in stocks (valued
at Lifo) was recorded for euro 36 million as compared to a revaluation of euro 13 million
in 2002; (iv) lower volumes sold in wholesale markets in Italy due to a weak economic
situation. These negative factors were offset in part by (i) lower costs (euro 60
million) related to streamlining and disposals, offset in part by salary increases and
inflation, (ii) higher retail margins in Europe, and (iii) efficiency improvement, offset
in part by lower retail sales in Italy due to the the network restructuring process.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B>Petrochemicals. </B>In 2003
operating losses amounted to euro 176 million, an increase of euro 50 million over 2002,
up 39.7%, due to: (i) lower volumes sold (down 4.1%), in particular in basic
petrochemicals; (ii) lower product margins, in particular in polymers, related to an
increase in the cost of monomers that could not be transferred to sale prices due to a
weak demand and strong competitive pressure; (iii) the fact that in 2002 inventories were
revaluated for euro 23 million in relation with increased sale prices. These negative
factors were offset in part by lower asset writedowns and lower costs related to
streamlining and efficiency improvement actions. </FONT></P>


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<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">______________________________</FONT></DIV>


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<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="1"><SUP>3 </SUP>The ceiling on sales to end
customers is 50%; the ceiling on volumes input into the Italian network to be sold in
Italy is 73%. </FONT> </DIV>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating  losses in 2002
 amounted to euro 126 million,  a decrease of euro 206 million over 2001,  or 62%, due
mainly to: (i) the transfer of certain  loss-making  plants to the Other Activities
 segment;  (ii) lower  depreciation and amortization  charges (euro 90 million) following
plant writedowns  recorded in 2001;  (iii) the fact that in 2001 the impact of price
 decreases on the evaluation of stocks had been negative for euro 100 million (in 2002
this impact was positive for euro 27 million);  (iv) lower costs related to streamlining
 and disposals  (euro 70 million),  offset in part by salary  increases  and  inflation.
 These  positive  factors  were offset in part by: (i) a decline in margins,  especially
 in the first quarter of 2002,  related to lower selling  prices of products (on average
down 8%), as compared to a slower  decline in prices in euro of oil-based feedstocks (on
average down 1.2%), and (ii) assets impairments (euro 105 million).</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>Oilfield Services
Construction and Engineering</I></B>.Operating income in 2003 totaled euro 311 million, of
which euro 304 million related to oilfield services and construction, with a euro 13
million increase over 2002, up 4.4%.<BR>Operating income of oilfield services and
construction increased slightly over 2002 (euro 2 million). The positive factors
contributing to this increase were: (i) the increased contribution of Bouygues
Offshore, purchased in July 2002 (euro 83 million after the writedown of euro 21 million
of the difference between purchase price and net equity); (ii) an increase in
activity levels in the Offshore construction area due to the start-up of relevant
contracts in Libya (laying of the Greenstream gasline and development of the Bahr
Essalam field) and in Nigeria (development of the Erha and Yoho B fields); (iii) higher
profitability of some contracts in the Onshore construction area. These positive
factors were offset in part by: (i) the completion in 2002 of the Blue Stream
contract; (ii) lower results in the Offshore drilling area as a consequence of work
performed on the Scarabeo 5 and 7 vessels and the limited use of the Scarabeo 6 vessel.<BR>
<I>Engineering </I>activities recorded an operating income amounting to euro 7 million as
compared to an operating loss of euro 4 million in 2002. The euro 11 million improvement
was related to higher activity levels. Including in operating income the results of
activities operated in joint venture, which are recorded as income from investments,
operating income in 2003 amounted to euro 34 million (euro 23 million in 2002). </FONT> </P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating  income in 2002
totaled euro 298 million,  of which euro 302 million related to oilfield  services,  with
a euro 43 million  increase over 2001, up 16.9%.  Oilfield  services  recorded an
increase in operating income of euro 46 million due to the contribution of the Blue
Stream and Karachaganak  projects  and to the results  obtained by  increased  activities
 in West  Africa,  Saudi  Arabia and the Far East,  as well as to the contribution  of
Bouygues  Offshore  (euro 35 million  before the  allocation  of euro 21 million for the
 amortization  of the  difference  between purchase price and net equity non
 attributable  to fixed assets).  These positive  factors were offset in part by the
lower  profitability  of some contracts in the Offshore drilling area.  Engineering
 activities recorded an operating loss of euro 4 million,  with a euro 3 million decline,
 due primarily to higher  provisions  to the reserve for risks and  contingencies  on
 contracts  nearing  completion  (euro 18 million) and the negative outcome  of a
 transaction  (euro 8  million),  offset in part by  increased  turnover  for 2002,  in
 particular  related to the  contract  for the construction  of the  Milan-Bologna  high
speed train  tracks.  Note that income  earned from joint  venture  projects is accounted
for as income on investments in Eni&#146;s income  statement.  Operating income  calculated
with the inclusion of this income amounted to euro 23 million (euro 11 million in 2001 in
comparable terms).</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>Other activities </I></B>Starting in
2003, this segment comprises results of operations of certain non-core petrochemicals
plants and of certain Eni&#146;s subsidiaries engaged in the information technology, real
estate, research and development and human resources training businesses. In 2003 this
segment recorded operating losses of euro 279 million with a euro 78 million increase
over 2002, due in particular to higher losses of Syndial SpA (euro 102 million), related
essentially to the sale of industrial services at Brindisi, Ferrara, Priolo and
Ottana and to the shutdown of the caprolactam plant at Porto Marghera and the
acrylonitril plants at Assemini and Gela. Management expects the positive effects of
the divestments and closures to be recognized in 2004 lower costs of staff and operating
structure. </FONT> </P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>Corporate and financial
companies </I></B>Starting in 2003, this segment comprises Eni&#146;s corporate and financial
overhead costs as well as the operating results of the insurance business. In 2003, this
segment recorded operating losses of euro 295 million, increasing by euro 86 million
over 2002, up 41.1%, due essentially to the recording in the income statement of the
costs of the Eni Slurry Technology project (EST project &#150; see &#147;Item 4 &#150;Research and
Development&#148;) and higher amortization and depreciation charges related to the purchase of
software licences (overall euro 45 million) and the centralization of IT, telecom,
personnel management and goods and service purchase activities, expenses that are only
partially invoiced by Eni Corporate to Eni business segments. In 2002, this segment
recorded operating losses of euro 209 million. </FONT> </P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>e ) Net Financial Expense</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth a
breakdown of Eni&#146;s net financial (expense) income for the periods indicated:</FONT></P>




<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net financial expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(433) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(259) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(270) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income on operating financing receivables and tax credits </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">184&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">122&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">116&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Foreign exchange difference, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(10) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(30) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(259) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(167) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(154) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>2003 compared with 2002. </I>Net
financial expense (euro 154 million) decreased by euro 13 million over 2002, down
7.8%, due in particular to lower interest rates on European markets (Euribor down one
percentage point) and on international markets (Libor down 0.6 percentage points) as
well as the effect of exchange rates on the conversion of financial statements of
subsidiaries denominated in currencies other than the euro and lower negative
exchange differences (euro 30 million). These positive factors were offset in part by
an increase of approximately euro 3.8 billion in average net borrowings. </FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002 compared with 2001. </I>Net
financial expense (euro 167 million) decreased by euro 92 million over 2001, due mainly
to lower interest rates (three-month Euribor down 1 percentage point) and lower average
net borrowings for about euro 950 million. </FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>f) Net Expense  from
Investments</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2003 compared with 2002</I>. Net
expense on investments amounted to euro 17 million (net income of euro 43 million in
2002) and represented the balance of expense of euro 278 million and income of euro
261 million. Expense concerned essentially, Eni&#146;s share of losses of subsidiaries
accounted for with the equity method and Eni&#146;s share in losses of subsidiaries
accounted for at cost, relating in particular to Albacom SpA (euro 128 million), Galp
Energia SGPS SA (euro 29 million resulting from the writedown of euro 107 million of the
difference between purchase cost and net equity the effects of which were offset in
part by Eni&#146; s share of Galp results from operations), Blue Stream Pipeline Co BV (euro
25 million: Eni expects to recover this loss in future years on the basis of the
agreements entered into with the shippesr, and other subsidiaries in the
Exploration &amp; Production (euro 61 million) and Oilfield Services, Construction and
Engineering (euro 4 million) segments. Income concerned essentially: (i) Eni&#146;s
share of income of subsidiaries accounted for with the equity method (euro 180
million), in particular in the Gas &amp; Power (euro 108 million), Oilfield Services,
Construction and Engineering (euro 41 million) and Refining &amp; Marketing segments (euro
28 million); (ii) dividends received by subsidiaries accounted for at cost (euro 22
million); (iii) gains from disposal (euro 39 million) essentially related to the sale of
Eni&#146;s 20% stake in Inca International SpA and 50% in Epoxital Srl in the Other activities
segment (overall euro 36 million). </FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002 compared with 2001.
</I>Net income from investments amounted to euro 43 million (net expense of
euro 216 million in 2001) and represented the balance of income of euro 288 million and
expense of euro 245 million. Income from investments concerned mainly: (i) Eni&#146;s
share of income on investments accounted for with the equity method (euro 184
million) in particular in the Gas &amp; Power (euro 98 million), Oilfield Services and
Engineering (euro 38 million) and Refining &amp; Marketing (euro 40 million)
segments; (ii) gains on disposal (euro 55 million) essentially on the disposal of a
10% interest in Qatar Petrochemical Co in the Petrochemical segment (euro 52
million); (iii) dividends from investments accounted for at cost (euro 32 million). </FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Expense on  investments  (euro
247 million)  concerned:  (i) Eni&#146;s share of losses on  investments  accounted for with
the equity method and at cost (euro 209  million),  in  particular  Galp  Energia SGPS SA
(euro 85 million  related to the  amortization  of the euro 107 million  difference
between  purchase  price and net equity);  Albacom SpA (euro 37 million) and Inversora de
Gas del Centro SA and  Distribuidora  de Gas del Centro SA (euro 36 million),  minor
 interests in the Exploration &amp; Production  (euro 24 million),  Oilfield  Services
 Construction  and Engineering  (euro 8 million)  and other  segments  (euro 25 million);
 (ii) losses on disposal of assets  (euro 24 million,  of which 20 related to the sale of
Eni&#146;s 7% interest in Blu SpA).</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The positive change of euro 259
million in the balance of gains and losses on investments as compared to 2001 was due
mainly to the circumstance that in 2001 a euro 209 million loss was recorded on Polimeri
Europa, which in 2001 was accounted for under the equity method, as well as a lower loss recorded on Galp Energia SGPS SA (euro 59 million).</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>g) Net Extraordinary
Expense</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth Eni&#146;s
extraordinary income and extraordinary expense for the periods indicated. All line-items
included in the following table are derived from consolidated financial statements prepared in
accordance with Italian GAAP.</FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gains on disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,473&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">257&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">290&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Gain on the offering of Snam Rete Gas </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,453&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Gain on the sale of real estate </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">751&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other extraordinary income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">173&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">273&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extraordinary income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,646&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">369&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">563&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Restructuring costs: </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Provisions for risks </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(885) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(157) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(248) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Writedowns of fixed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(607) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(55) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(66) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Cost of redundancy incentives </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(237) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(114) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(116) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total restructuring costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,729) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(326) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(430) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other extraordinary expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(80) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(72) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(84) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extraordinary expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,809) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(398) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(514) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net extraordinary income (expense) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,837&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(29) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>2003 net extraordinary income</I>.
Net extraordinary income amounted to euro 49 million (net expense of euro 29 million in
2002) and represented the balance of extraordinary income of euro 563 million and
extraordinary expense of euro 514 million. Income concerned essentially: (i) gains on
disposals from the sale of service stations and real estate in the Refining &amp; Marketing
segment (euro 237 million) and the sale of the marine tanker activities and real estate
in the Gas &amp; Power segment (euro 52 million); (ii) the settlement paid by Edison SpA in
relation with the Enimont dispute (euro 200 million); (iii) the release of redundant risk
reserves (euro 47 million, of which euro 38 million in the Other activities segment,
concerning disposals, restructuring and future expense). Expense concerned essentially:
(i) provisions for risks and contingencies of euro 248 million, in particular charges
related to compliance with environmental laws and regulations in the Other activities
(euro 82 million) and Refining &amp; Marketing segments (euro 51 million) and costs expected
to be incurred for the decommissioning of inactive sites in the Other activities segment
(euro 48 million); (ii) redundancy incentives of euro 116 million in particular in the
Petrochemicals, Refining &amp; Marketing, Oilfield Services, Construction and Engineering and
Gas &amp; Power segments; (iii) writedowns and losses (euro 66 million) related in particular
to the expiry of certain highway concessions for service stations (euro 35 million) and
the writedown of the Baytown (USA) elastomer plant in the Petrochemical segment (euro 11
million). </FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002 net extraordinary expense.
</I>Gains on disposals (euro 257 million) related to the sale of investments, businesses
and fixed assets as a result of restructuring activities. In particular they concerned:
(i) in the Refining &amp; Marketing segment, the sale of service stations in Italy to
Tamoil, TotalFinaElf and others (euro 127 million), the sale of Agip Nigeria Ltd and
other minor interests in Africa (euro 87 million) and the sale of logistic assets,
small businesses and minor assets (euro 11 million); and (ii) in the Gas &amp; Power
segment, the sale of real estate (euro 21 million). </FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other extraordinary  income of
euro 112 million concerned the reversal of redundant funds,  settlements of disputes and
recovery of receivables in the Petrochemicals (euro 72 million), Gas &amp; Power (euro 23
million), Refining &amp; Marketing (euro 13 million) and other segments (euro 6 million).</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions  for risks and
 contingencies  of euro 157  million  related  mainly the  reserve for  environmental
 risks and  expense  related to streamlining and disposals in the Refining &amp; Marketing
(euro 79 million) and Petrochemical (euro 71 million) segments.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redundancy incentives of euro
114 million concerned primarily the Petrochemical segment (euro 34 million), the Gas &amp; Power
division (euro 28 million), the Refining &amp; Marketing division (euro 26 million), the
Oilfield Services Construction and Engineering segment (euro 14 million) and the
Exploration &amp; Production division (euro 9 million).</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Writedowns and losses for euro
55 million concerned  essentially  assets in the  Petrochemical  segment (euro 23
million) and a euro 22 million loss  related to the  conferral  of the Priolo  refinery
 and of its power  station to Erg  Raffinerie  Mediterranee  Srl,  in which Eni holds a
28% interest after the conferral.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other  extraordinary  expense
(euro 72 million)  concerned  essentially  the Refining &amp; Marketing  division (euro 49
million) mainly related to restructuring and expense of previous years.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Note 27 to the Consolidated
Financial Statements for a discussion of the different criteria used under Italian GAAP
and U.S. GAAP for determining extraordinary items.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>h) Taxes</I></B></FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under  Italian tax law in force
until  December  31, 2003,  Eni,  like all other  Italian  groups,  is unable to offset
fully income  earned by certain  subsidiaries  against  losses  recognized by other
 subsidiaries  because each legal entity must pay income tax on the basis of the results
recorded by it rather than on the basis of consolidated financial results.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2003 compared with 2002</I>. Income
taxes (euro 3,241 million) increased by euro 114 million over 2002, due to a euro 1,046
million increase in income before taxes, to the expiry/reduction of certain tax
incentives and lower benefits related to the release of the reserve for anticipated
amortization. These negative factors were offset in part by: (i) the effect of the
revaluation of assets, provided for by the Italian budget law for 2004, which had a
positive balance of euro 414 million net of a tax charge of euro 412 million as a result
of the application of a special rate provided for by such budget law instead of the
statutory tax rate otherwise applicable; (ii) the recording of deferred tax assets
related to the temporary difference between the recorded value of assets of Stoccaggi Gas
Italia SpA and their value for tax purposes, following the adjustment made by the company
in May 2003 (euro 287 million)1; (iii) the fact that in 2002 the reserve for deferred
taxes was increased in relation to the 10 percentage point increase in corporate taxes
for oil companies in the United Kingdom (from 30 to 40%) with a euro 215 million effect;
(iv) a 2 percentage point reduction in corporate tax (Irpeg) in Italy. </FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003 the effective tax rate
was 34.5%  compared with a statutory tax rate of 39.9%,  calculated by applying a 34% tax
rate (Irpeg) to income before taxes and a 4.25% tax rate (Irap) to the net value of
 production  as provided for by Italian  laws.  The 5.4  percentage  points  difference
between the statutory and the effective tax rate is due to the following  factors:  i) a
12.5 percentage  points reduction due to the effects of the application of favourable tax
laws  (particularly,  the  aforementioned  Italian budget law for 2004 and Law No. 448 of
December 28, 2001; and ii) a 7.4 percentage points increase due to the higher rate of
taxes applicable to the income before income taxes of certain foreign subsidiaries.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni expects its effective tax
rate in 2004 to be higher than the one recorded in 2003 due to the expiration of the
aforementioned effects of those favourable tax laws.</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002 compared with 2001.
</I>Income taxes (euro 3,127 million) decreased by euro 402 million over 2001, due mainly
to a decline in income before taxes and the positive effect (euro 95 million) of the
release of the reserve for anticipated amortization as per Law 448/2001, offset in part
by the adjustment of the reserve for deferred tax liabilities due to a 10
percentage point increase in corporate taxes (from 30 to 40%) of oil companies in the
United Kingdom (euro 215 million). </FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 7.5 percentage point
increase in tax rate compared to 2001 (from 30 to 37.5%) was due mainly to the fact that
the gains on the placement of 40.24% of Snam Rete Gas in 2001 were recorded net of
substitute tax paid.</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The 4.6 percentage point
difference between effective tax rate (37.5%) and statutory tax rate (42.1%) was due to:
(i) for 4.9 percentage points to the effect of the application of a favorable tax regime
as provided for by certain Italian tax laws (such as the law on dual income tax, Law
383/2001, which provides for fiscal incentives to new investments, and Law 448/2001);
(ii) the effect of a revaluation of assets in 2000 as per Law 342/2000 for 4.7 percentage
points. These effects were partially offset by the higher rate of taxes of foreign
subsidiaries (2.7 percentage points), the circumstance that certain expenses were not tax
deductible (0.8 percentage points) and other minor causes (1.5 percentage points).</FONT></P>


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<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">________________________________</FONT></DIV>


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<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="1"><SUP>4 </SUP>According to Law No. 448 of
December 28, 2001, companies receiving contributions-in-kind of assets are allowed to
align the taxable value of these assets to the higher book value by paying a tax
calculated at the 9% special rate provided for by the law instead of the 34% statutory
tax rate applied to the difference between the two values. Stoccaggi Gas Italia SpA,
which in 2001 received a contribution-in-kind of natural gas storage assets
from Eni SpA and Snam SpA, applied this law. Therefore in Eni&#146;s consolidated financial
statements a temporary difference between taxable values and book values of these assets
was recognized, which led to the recognition of the euro 287 million deferred tax asset
(net of the special rate tax of euro 154 million). </FONT></DIV>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">(2.7 percentage points), the
circumstance that certain expenses were not tax deductible (0.8 percentage points) and
other minor causes (1.5 percentage points).</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes of foreign
 subsidiaries in the Exploration &amp; Production  division amounted to euro 2,093 million,
 representing a euro 28 million decrease over 2001 reflecting lower income before taxes
of foreign  subsidiaries  with relatively  higher tax rates and the recording of
anticipated taxes on tax loss  carryforwards of Agip Petroleum Co Inc and Agip
 Exploration &amp; Production Ltd,  partially offset by the adjustment of the reserve for
deferred tax liabilities of oil companies in the United Kingdom (euro 215 million).</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>i) Minority Interest</I></B></FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><I>2003 compared with 2002
</I>Minority interest (euro 569 million) concerned in particular Snam Rete Gas SpA (euro
427 million) and Saipem SpA (euro 112 million). The euro 60 million decline over 2002 was
due essentially to the effect of the tender offer for Italgas shares (euro 124 million). </FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>2002 compared with 2001.
</I>Minority interest (euro 629 million) increased by euro 161 million over 2001,
due mainly to the placement of 40.24% of Snam Rete Gas in late 2001 and higher net income
earned by Saipem SpA. </FONT></P>




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<P STYLE='page-break-before:always'>


<a name="a34"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<p align="justify"><font face="Times New Roman, Times, serif" size="2"><b>Liquidity and Capital Resources </b></font></p>
 <p align="justify"><font size="2" face="Times New Roman, Times, serif">&nbsp;&nbsp;&nbsp;&nbsp;The
   table below sets forth the principal components of Eni's change in
   cash and cash equivalent for the periods indicated.</font></p>

 <TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% ALIGN=center>
<TR VALIGN=Bottom>
     <TD WIDTH=52% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="3" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year
ended December 31,</B> </FONT></TD>
     </TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD colspan="3" ALIGN=center><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD width=76% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD width="8%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT></TD>
     <TD width="8%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT></TD>
     <TD width="8%" ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=center><hr size="1"></TD>
 <TD ALIGN=center><hr size="1"></TD>
 <TD ALIGN=center><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan="3" ALIGN=RIGHT><div align="center"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT></div>      <div align="center"></div>      <div align="center"></div></TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income before minority interest </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,228&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,222&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,154&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>&nbsp;&nbsp;&nbsp;&nbsp;Adjustments
to reconcile to cash generated from operating income before changes
in working capital:</I> </FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;Amortization
and depreciation and other non-monetary items </FONT>

</TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4,942 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">5,682 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">5,493 </FONT> </TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;Net
gains on disposals of assets </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">(170) </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">(152) </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">(35) </FONT> </TD>
     </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;Dividends,
interest, extraordinary income (expense) and income taxes </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2,038 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3,305 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3,268 </FONT> </TD>
     </TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net cash generated from operating income before changes in working capital </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,038&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,057&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,880&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Changes in working capital related to operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(197) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(510) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(465) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends received, taxes paid, interest and extraordinary income/expense </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;(paid) received during the year </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6,695) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,969) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,588) </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,146&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,578&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,827&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditures </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6,577) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8,048) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8,802) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments<SUP>(1)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,082) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,315) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(985) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,114&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">935&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">650&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other cash flow related to capital expenditure, investments and divestments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">991 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(101) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,079&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Changes in short and long-term financial debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(534) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,736&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,629&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends paid and changes in minority interests and reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(950) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,846) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,933) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effect of change in consolidation scope and exchange differences </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(64) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(107) </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;<B>Change in cash and cash equivalent for the year</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>146&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,875&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,642)</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalent at the beginning of the year </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,244&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,390&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,265&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalent at year end </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,390&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,265&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,623&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
</TABLE>
    <table width="100%"  cellspacing="2" cellpadding="0">
     <tr>
      <td width="5%" valign="top"><font size="1" face="Times New Roman, Times, serif">(1)</font></td>
      <td width="95%"><font size="1" face="Times New Roman, Times, serif"> This item refers mainly to the acquisition of net equity
      of other companies. </font></td>
     </tr>
</table>
<p>&nbsp;</p>
    <p align="justify"><font size="2" face="Times New Roman, Times, serif"> &nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the principal components of Eni's change in
     net borrowings<sup>(2)</sup> for the periods indicated.</font></p>
<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% ALIGN=center>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD colspan="3" ALIGN=center> <p><FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </p></TD>
 </TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD colspan="3" ALIGN=center><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=center> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>2001</B> </FONT> </TD>
 <TD ALIGN=center> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>2002</B> </FONT> </TD>
 <TD ALIGN=center> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>2003</B> </FONT> </TD>
</TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=center><hr size="1"></TD>
 <TD ALIGN=center><hr size="1"></TD>
 <TD ALIGN=center><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD colspan="3" ALIGN=center> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD>
 </TR>
<TR VALIGN=Bottom>
     <TD width="70%" ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income before minority interest </FONT></TD>
     <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,228&nbsp; </FONT></TD>
     <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,222&nbsp; </FONT></TD>
     <TD width="10%" ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,154&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;Adjustments
to reconcile to cash generated from operating income before changes
in working capital: </FONT></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp; Amortization
and depreciation and other non-monetary items </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4,942 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">5,682 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">5,493 </FONT> </TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp; Net
gains on disposals of assets </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">(170) </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">(152) </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">(35) </FONT> </TD>
    </TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp; Dividends,
interest, extraordinary income (expense) and income taxes </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2,038 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3,305 </FONT> </TD>
     <TD ALIGN=RIGHT> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3,268 </FONT> </TD>
    </TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net cash generated from operating income before changes in working capital </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,038&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,057&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,880&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Changes in working capital related to operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(197) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(510) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(465) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends received, taxes paid, interest and extraordinary income/expense </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(paid) received during the year </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6,695) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,969) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,588) </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net cash provided by operating activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,146&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,578&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,827&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditures </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6,577) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8,048) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8802) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,082) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,315) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(985) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,114&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">935&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">650&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other cash flow related to capital expenditure, investments and divestments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(88) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(319) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,110&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net borrowings<SUP>(2) </SUP>of acquired companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,582) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(267) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(692) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net borrowings<SUP>(2) </SUP>of divested companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">185&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exchange differences on net borrowings and other changes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(312) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">990&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,422&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends paid and changes in minority interests and reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(950) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,846) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,933) </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Change in net borrowings<SUP>(2)</SUP></B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(2,146)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,253)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(2,402)</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
 <TD ALIGN=LEFT><FONT SIZE="1">&nbsp; </FONT></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
 <TD ALIGN=RIGHT><hr size="1"></TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net borrowings<sup>(2)</sup> at the beginning of the year </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,742&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,888&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,141&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net borrowings<sup>(2)</sup> at year end </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,888&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,141&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,543&nbsp; </FONT></TD></TR>
</TABLE>
<hr size="1" width="15%" align="left">
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr>
  <td width="5%" valign="top"><font size="1" face="Times New Roman, Times, serif">(2)</font></td>
  <td width="95%"><font size="1" face="Times New Roman, Times, serif"> Net borrowings is a non-GAAP financial measure. For a discussion of the usefulness
 of net borrowings and its reconciliation with the most directly comparable GAAP
 financial measures see &#148;Financial conditions&#148; below. </font></td>
 </tr>
</table>


<!-- MARKER FORMAT-SHEET="Times Just Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Analysis of certain
components of Eni&#146;s change in net borrowings:</B></FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>a) Cash generated from
operating income before changes in working capital</I></B></FONT></P>




<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash generated from operating
 income before changes in working  capital totaled euro 14,880 million and euro 14,057
million and 15,038 million in 2003, 2002 and 2001, respectively.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003 income before  minority
 interests has been adjusted to take into account  depreciation,  amortization  and other
 non-cash items (euro 5,493  million).  Adjustments  concerned  primarily  depreciation
 and  amortization  of tangible and  intangible  assets  (euro 4,710  million) and
writedowns of fixed assets and investments (euro 507 million)</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, income before minority
interests has been adjusted to take into account depreciation, amortization and other
non-cash items (euro 5,682 million). Adjustments concerned primarily depreciation and
amortization of tangible and intangible assets (euro 4,962 million) and writedowns of
fixed assets and investments (euro 597 million).</FONT></P>




<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>b) Changes in working
capital related to operations</I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net working  capital related to
operations  increased by euro 465 million,  by euro 510 million and by euro 197 million
in 2003, 2002 and 2001, respectively.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003,  the increase in net
working  capital (euro 465 million) was mainly due to a euro 682 million  increase in
trade  accounts  receivable due essentially to: (i) increased  volumes of natural gas and
oil products sold and the fact that the payment  deadlines of certain relevant natural
gas supply invoices  (approximately  euro 230 million)  matured in the first days of
2004;  (ii) higher  activity  levels in the Oilfield  Services, Construction and
Engineering segment. This factor was partly offset by an  increase in the euro value of
trade accounts payable</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002,  the increase in net
working  capital  (euro 510 million) was mainly due to the  anticipated  payment of
certain  excise taxes due for year 2002, partly offset by decrease in trade accounts
payable.</FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Dividends, interest,
taxes and extraordinary expense</I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends,  interest,  taxes
and extraordinary  expense paid (which is net of amounts  received) totaled euro 3,588
million,  2,969 million and euro 6,695 million in 2003, 2002 and 2001, respectively.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003,  dividends  received,
 interest,  extraordinary  income (expense) and income taxes paid (euro 3,588 million)
 concerned  primarily the payment of income taxes.</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, dividends received,
interest, extraordinary income (expense) and income taxes paid (euro 2,969 million)
concerned primarily the payment of income taxes.</FONT></P>



<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>d) Capital expenditures
and Investing Activities</I></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital  expenditures  totaled
euro 8,802  million,  8,048 million and euro 6,577 million in 2003,  2002 and 2001,
 respectively.  The euro 754 million  increase from 2003 to 2002 was due mainly to the
euro 445 million  increase in the the Gas &amp; Power segment,  to the euro 180 million in
the Refining &amp; Marketing  segment,  66 million in the Exploration &amp; Production  segment
and 45 million in Oilfield Service  Construction and Engineering segment, partly offset
by decreases in all other Eni segments</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The euro 1,471 million
 increase from 2002 to 2001 was due mainly to the euro 1,339 million  increase in the
 Exploration &amp; Production  segment and to the euro 250 million in the Gas &amp; Power
segment, partly offset by decreases in all Eni other segments.</FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investments (including net
borrowings acquired) totaled euro 1,677 million, euro 1,366 million, and euro 4,664
million in 2003, 2002 and 2001, respectively. In 2003 investments  concerned primarily
the purchase of 100% of Fortum Petroleum (euro 909 million), of 50% of Uni&#243;n Fenosa Gas
(euro 442 million), as well as the purchase of majority stakes in natural gas
distribution companies in Hungary (euro 68 million).</FONT></P>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">In 2002  investments  related
in particular to the purchase of French company  Bouygues  Offshore (euro 906 million,
 net of assets acquired of euro 100 million) and of other  companies  (euro 149 million)
in the Oilfield  services  segment and the purchase of 97.81% of GVS in joint  venture
with German  company EnBW in the Gas &amp; Power  segment.  The joint venture paid for the
purchase  (euro 704 million) by  increasing  the share capital for euro 178 million (Eni&#146;s
share was euro 89 million) and raising finance debt for the remaining part.</FONT></P>


<!-- MARKER FORMAT-SHEET="Times Just Italic Bold" FSL="Workstation" -->
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>e) Disposals</I></B></FONT></P>

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<FONT FACE="times new roman" SIZE="2">Disposals (including net debt
discharged) totaled euro 651 million, euro 974 million and euro 2,299 million in 2003,
2002 and  2001, respectively. Disposals in 2003 (euro 651 million) concerned essentially:
(i) the Refining &amp; Marketing segment (euro 293 million) essentially related to the sale
of service stations in Italy (euro 216 million) and real estate and other minor assets
(euro 77 million); (ii) the Exploration &amp; Production segment (euro 140 million), mainly
related to the sale of interests in hydrocarbon fields in the North Sea within the
rationalization process of its mineral right portfolio; (iii) the Other Activities
segment (euro 95 million) related in particular to the sale of 20% of Inca International
SpA and 50% of Epoxital (overall euro 44 million), the liquidation of Conserv Inc (euro
25 million) and the sale of real estate and minor assets (euro 26 million); (iv) the Gas &amp; Power
segment (euro 86 million) related to the sale of the marine tanker business (euro 52
million) and of real estate and minor assets (euro 34 million).</FONT></P>




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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002 disposals (euro 974
million)  concerned  essentially:  (i) the  Exploration &amp; Production  segment (euro 436
million) mainly relating to the  rationalization  of Eni&#146;s mineral asset  portfolio;
 (ii) the Refining &amp; Marketing  segment (euro 322 million)  relating to the sale of
service stations in Italy (euro 160 million),  the sale of Agip (Nigeria) Ltd and other
minor assets in Africa (euro 76 million) and  logistical  assets and other minor assets
(euro 86 million);  (iii) the  Petrochemical  segment  (euro 105 million) of which euro
81 million  related to the sale Eni&#146;s 10% interest in Qatar  Petrochemical  Co; (iv) the
Gas &amp; Power segment (euro 59 million) of which 17 million  related to the sale of the
water  business of Fiorentina Gas SpA.</FONT></P>



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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>f) Dividends paid and
changes in minority interests and reserves</I></B></FONT></P>

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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003,  dividends paid and changes in minority  interest and reserves (euro 5,933 million)
related to the tender offer on Italgas shares (euro 2,569  million),  the payment of
dividends  for fiscal year 2002 by Eni SpA for a total amount of euro 2,833  million
 (corresponding  to euro 0.750 per share or U.S.  dollar 4,29 per ADS  converted at the
Noon Buying Rate of the payment date: 1 euro = 1.1429 U.S.  dollar),  the purchase of
23,94  million  Eni shares  within the share  buy-back  program  (euro 329  million)  and
the  payment of  dividends  by Snam Rete Gas SpA (euro 126 million), Saipem SpA (euro 36
million) and other consolidated subsidiaries (euro 16 million).</FONT></P>


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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002, dividends paid and
changes in minority interest and reserves (euro 3,846 million) related mainly to the
payment of 2001 dividends for the fiscal year by Eni SpA for a total amount of euro 2,876
million (corresponding to euro 0.750 per share or U.S. dollar 3.71 per ADS converted at
the Noon Buying Rate of the payment date 1 euro = 0.9885 U.S. dollar), the purchase of
52.26 million Eni shares within the share buy-back program (euro 770 million) and the
payment of dividends to Eni SpA by Snam Rete Gas SpA (euro 74 million), Italgas SpA (euro
37 million) and Saipem SpA (euro 32 million).</FONT></P>


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<a name="a35"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Financial condition</I></B></FONT></P>

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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni evaluates its financial
 condition by reference to &#147;net borrowings&#148;,  which is a non-GAAP financial measure.  Eni
calculates net borrowings as total finance debt (short-term and long-term debt) derived
from its consolidated  financial  statements  prepared in accordance with Italian GAAP
less:  cash,  cash equivalent and certain very liquid  investments not related to
operations including among others,  non-operating  financing  receivables and securities not related
to operations. Non operating  financing  receivables
 consists of amounts due to Eni&#146;s financing subsidiaries from banks and other financing
 institutions and amounts due to other  subsidiaries  from banks for investing  purposes
and deposits in escrow. Securities not related to operations consist primarily of
government and corporate securities.</FONT></P>


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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Management believes that net
borrowings is a very useful measure of Eni&#146;s financial condition as it provides an
indication of the soundness of Eni capital structure and of how well-financed Eni assets
are. In addition, management utilizes the ratio of net borrowings to total shareholders&#146;equity
including minority interest (leverage) to evaluate Eni&#146;s finance structure, to analyze
whether the ratio between finance debt and shareholders&#146; equity is well balanced according
to industry standards and to track management&#146;s short-term and medium-term targets.
Management constantly monitors trends in net borrowings and trends in leverage in order to
optimize the use of internally-generated funds vs. funds from third parties. The measure
calculated in accordance with Italian GAAP that is most directly comparable to net
borrowings is total debt (short term and long term debt). The measure calculated in
accordance with Italian GAAP that is most directly comparable to leverage is the ratio of
finance debt to shareholders&#146; equity (including minority interest). Eni&#146;s presentation and
calculation of net borrowings and leverage may not be comparable to that of other
companies.</FONT></P>


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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth the
calculations of net borrowings for the periods indicated and its reconciliation to the
most directly comparable GAAP measure.</FONT></P>



<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD>
     <TD COLSPAN=6 ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=6><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Short-term</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Long-term</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Short-term</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Long-term</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=6><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=28% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Finance debt (Short-term and long-term debt)</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,870&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,550&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15,420&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,918&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,336&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>16,254&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cash and cash equivalent </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,265) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,265) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,623) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.623) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Securities not related to operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(719) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(290) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,009) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(781) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(783) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Non operating financing receivables </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(240) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(240) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(65) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(65) </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=6><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net Borrowings</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,881&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,260&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>11,141&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,449&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,094&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>13,543&nbsp;</B> </FONT> </TD></TR>
</TABLE>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">The measure calculated in
accordance with Italian GAAP that is most directly comparable to net borrowings is
finance debt (short-term and long-term debt)</FONT></P>


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<FONT FACE="times new roman" SIZE="2">The measure  calculated  in
 accordance  with  Italian  GAAP that is most  directly  comparable  to  leverage is the
ratio of finance  debt to total shareholders&#146; equity (including minority interest). A
quantitative reconciliations of these measures is set forth below:</FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>

<TR VALIGN=Bottom>
     <TD colspan=3  ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Shareholders&#146;equity
including minority interests as per Eni&#146;s consolidated financial </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> statements prepared in accordance with Italian GAAP </font></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>20,351&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>28,318&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<BR>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Ratio of finance debt to total shareholders&#146; equity including minority interests</I> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>0.54&nbsp;</I> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>0.57&nbsp;</I> </FONT> </TD></TR>
</TABLE>


<BR>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Less: ratio of cash, cash equivalent and certain very liquid investments not related to operations to total shareholders&#146; equity including minority interests</I> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>(0.15)</I> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>(0.09)</I> </FONT> </TD></TR>
</TABLE>


<BR>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Ratio of net borrowings to total shareholders&#146; equity including minority interests (leverage)</I> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>0.39&nbsp;</I> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>0.48&nbsp;</I> </FONT> </TD></TR>
</TABLE>


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<FONT FACE="times new roman" SIZE="2">In 2003, net borrowings
amounted to euro 13,543 million, a euro 2,402 million increase over December 31, 2002.
Debts and bonds amounted to euro 16,254 million, of which 7,918 were short-term
(including the portion of long-term debt due within twelve months for euro 490 million)
and 8,336 were medium and long-term. In particular bonds amounted to euro 4,793 million
(euro 3,518 million at December 31, 2002).</FONT></P>



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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term  and long-term  debt
of euro 16,254 million was  denominated  60% in euro,  32% in US dollars,  4% in pound
sterling and 4% in other currencies.</FONT></P>



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<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Short-term debt</I></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short-term debt of euro 7,428
million decreased by euro 462 million.  Such decrease was primarily due to the exchange
rate differences  related to the conversion of financial  statements  prepared in
currency other than euro (euro 963  million).This  decrease was partially  offset by the
new borrowings  (euro 470 million).  The average  interest rate of Eni&#146;s  short-term
 debt was 2.82% and 2.13% for the years ended December 31, 2002 and 2003, respectively.<BR>In
1999 Eni SpA opened a revolving  line of credit for euro 568 million,  which is due to
expire in 2004 and provides for the  maintainance  of some financial ratios generally
based on Eni SpA financial statements.  Eni is in compliance with the covenants contained
in its financing  arrangements. At December 31, 2003 the line of credit was unused
(completely used at December 31, 2002). On December 31, 2003 Eni maintained committed and
uncommitted unused short-term lines of credit with various domestic and foreign banks for
euro 4,647 and 4,799 million, respectively (euro 1,207 million and euro 7,272 million,
respectively, at December 31, 2002). These agreements provide for interest charges based
on prevailing market conditions. Commission fees on unused lines of credit are not
significant.</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Long-term debt</I></B> </FONT> </P>

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<FONT FACE="times new roman" SIZE="2">Long-term debt of euro 8,826
million  increased by euro 1,296 million in 2003.  Such increase was primarily due to the
 difference  between new debt and  reimbursements  (euro 1,253 million) and to the change
in the scope of  consolidation  (euro 688 million,  of which euro 685 million related to
the purchase of Fortum  Petroleum  AS, now Eni Norge AS).  The  increase was  partially
 offset by the effect of exchange  rate  differences  on the translation  of  financial
 statements  prepared in  currency  other than euro (euro 560  million).  The  balance of
 payments  and new  proceeds of liabilities  of euro 1,253  million  includes a new bond
issued  pursuant to Eni&#146;s Medium Term Notes Program for euro 2,400  million,  of which
euro 1,500 million was issued by Eni SpA.<BR>Eni entered into certain financing
 arrangements  relating to bank debt that requires maintenance of certain financial
ratios generally based on Eni SpA  financial  statements  and Eni  consolidated
 financial  statements.  At December 31, 2002 and 2003,  the amount of  long-term  debt
subject to restrictive  covenants was euro 424 million and euro 793 million,
 respectively.  Eni is in compliance with the covenants contained in its financing
arrangements.<BR>Ordinary bonds of euro 4,793 million  concern  primarily notes issued by
Eni in its Euro Medium Term Notes program for a total of euro 3,703 million and other
ordinary bonds for a total of euro 1,090 million.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The weighted average interest
rate on Eni&#146;s long-term debt (including current maturities) at December 31, 2003 was
approximately 4.13%.<BR>At December 31, 2003 Eni did not  maintain  committed  unused
 long-term  lines of credit  (euro 364 million at December  31, 2002 which  expired in
2003).  These  agreements  provide for interest  charges based on prevailing  market
 conditions.  Commission fees on unused lines of credit are not significant.<BR>Certain
debt, in the amount of euro 409 million and euro 332 million at December 31, 2002 and
2003, respectively, is guaranteed by mortgages and liens on the fixed assets of
consolidated companies and by pledges on marketable securities and fixed deposits.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Capital expenditures by
segment</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth a
breakdown, by segment, of capital expenditures.</FONT></P>


<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year ended December 31,</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=3><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(million &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,276&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,615&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,681&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,065&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,315&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,760&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">496&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">550&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">730&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">361&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">145&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">141&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">304&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">233&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">278&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">75&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">119&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">141&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;Total </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,577&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,048&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,802&nbsp; </FONT></TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
<TD><HR SIZE=1> </TD>
</TR>
</TABLE>




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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">In 2003,  capital  expenditure
in the Exploration &amp; Production  segment amounted to euro 5,681 million,  increasing by
euro 66 million over 2002, up 1.2%.<BR>Exploration  expenditure  amounted to euro 635
million, of which 91% outside Italy.  Outside Italy exploration  concerned mainly
Kazakhstan,  Egypt, Norway,  the United States,  Nigeria and Angola;  in Italy mainly the
offshore of the Ionian and Adriatic Sea, the deep waters of the Sicily Channel and
onshore areas in central-southern Italy and Sicily.<BR>Expenditure  for  development  and
capital goods totaled euro 5,015 million of which 91% was outside Italy.  Development
 expenditure  outside Italy concerned  fields in Libya,  Iran,  Angola,  Nigeria,  Egypt
 and  Kazakhstan.  Development  expenditure  in Italy  referred  in  particular  to the
continuation of construction of plant and infrastructure in the Val d&#146;Agri.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002,  capital  expenditure
in the Exploration &amp; Production  segment  amounted to euro 5,615 million,  increasing by
euro 1,339 million over 2001, up 31.3%.  Exploration  expenditure  amounted to euro 902
million,  of which 93% was outside Italy,  with a 19.2% increase over 2001.  Outside
Italy exploration  concerned mainly the United States,  Kazakhstan,  Egypt, Angola,
Russia and Brazil; in Italy mainly the deep waters of the Sicily Channel and areas in
 central-southern  Italy. The purchase of proved and unproved property (euro 317 million)
concerned  primarily the purchase of: (i) a 2.39%  interest in the North Caspian Sea PSA,
 where the Kashagan  field is located (Eni is single  operator with a 16.67%  interest
after the purchase) in  Kazakhstan;  (ii) a 5.6% interest in the Bayu Undan field (Eni&#146;s
 interest  12.32% after the  purchase) in  Australia;  (iii) an 11.3% interest in the
T-Block  fields (Eni is operator  with an 88.7%  share  after the  purchase)  in the
British  section of the North Sea;  (iv) a 7.9% interest in the Mikkel field in Norway;
 (v) an 8.9% interest in the Liverpool  Bay fields  (Eni&#146;s  interest  53.9% after the
purchase) in the Irish Sea.  Expenditure  for  development  and capital  goods  totaled
 euro 4,396  million of which 89%  outside  Italy,  increasing  by 27.3% over 2001.
Development expenditure outside Italy concerned fields in Nigeria, Iran, Libya,
Kazakhstan,  Angola,  Venezuela and the United Kingdom.  Development expenditure in Italy
referred in particular to the continuation of construction of plant and infrastructure in
the Val d&#146;Agri.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">In 2003, capital expenditure in
the Gas &amp; Power segment totaled euro 1,760 million, increasing by euro 445 million over
2002, up 33.8%, and related mainly to: (i) the program for building combined cycle power
stations (euro 542 million), in particular the Ferrera Erbognone, Brindisi and Mantova
power stations; (ii) the construction of the Greenstream pipeline (euro 460 million) for
the transmission of natural gas from Libyan fields to Sicily; (iii) development and
maintenance of Eni&#146;s primary gas transmission network in Italy (euro 434 million); (iv)
extension and maintenance of the secondary natural gas transmission network in Italy
(euro 292 million).</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002 capital  expenditure
 in the Gas &amp; Power segment  amounted to euro 1,315  million,  increasing by euro 250
million over 2001, up 23.5%, and related to: (i) development and maintenance of Eni&#146;s
primary and secondary  natural gas transmission  network in Italy (euro 606 million);
 (ii) the program for expanding power generation  capacity (euro 426 million),  in
particular the Ferrera Erbognone and Ravenna power stations;  (iii) the construction of
the Greenstream  pipeline (euro 236 million)  transporting  natural gas from Libyan
fields in Wafa and Bahr Essalam  operated by Eni to Sicily.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">In 2003, capital expenditure in
the Refining &amp; Marketing segment amounted to euro 730 million, increasing by euro 180
million over 2002, up 32.7%, and concerned: (i) refining and logistics (euro 291 million)
aimed in particular at maintaining plant efficiency and measures taken to comply with
health, safety and environmental standards and regulations; (ii) distribution of refined
products in the Italian network (euro 177 million) in particular for the restructuring,
upgrade, construction and purchase of new service stations (euro 95 million) and measures
taken to comply with safety, health and environmental standards and regulations (euro 15
million); (iii) activities outside Italy (euro 248 million) concerning primarily the
purchase of service stations in Germany, Spain and France; (iv) LPG (euro 11 million) and
IT (euro 3 million). Total expenditure on compliance with regulations on health, safety
and the environment amounted to euro 79 million (11% of the total).</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002 capital expenditure in
the Refining &amp; Marketing segment amounted to euro 550 million, increasing by euro 54
million, up 10.7%, over 2001 and concerned: (i) refining and logistics in Italy (euro 203
million, of which 44 in logistics) aimed in particular at maintaining plant efficiency
and measures taken to comply with health, safety and environmental standards and
regulations; (ii) distribution of refined products in the Italian network (euro 168
million) in particular for the reorganization, upgrade and construction of new service
stations (euro 96 million) and measures taken to comply with safety, health and
environmental standards and regulations (euro 16 million); (iii) activities outside Italy
(euro 109 million) representing 19% of the total capital expenditure and concerning
primarily the purchase of service stations in France (euro 29 million) and the
maintenance of the LPG distribution network in Brazil (euro 26 million). Total
expenditure on compliance with regulations on health, safety and the environment amounted
to euro 87 million (16% of the total).</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003,  capital  expenditure
in the  Petrochemicals  segment amounted to euro 141 million,  with a decrease of euro 4
million over 2002, down 2.8% and concerned in particular  actions for complying with
safety and  environmental  regulations  (euro 65 million) and actions for improving the
efficiency of the Priolo and Porto Marghera crackers (euro 27 million).</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002 capital  expenditure in
the  Petrochemicals  segment  amounted to euro 145 million and in particular  actions for
complying with safety and environmental regulations (euro 135 million).</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2003,  capital  expenditure
in the Oilfield  services and Engineering  segment  amounted to euro 278 million,
 increasing by euro 45 million over 2002, up 19.3%.  Capital  expenditure in oilfield
 services and construction  (euro 261 million)  concerned:  (i) the completion of the
Mystras FPSO that will  operate on the  Okono/Opkoho  fields in Nigeria;  (ii) the
 completion  of the  conversion  of Maxita into the new Saipem 3000 field development
ship; (iii) the completion of the upgrade of the semisubmersible drilling platform
Scarabeo 7 in order to adjust it to a new contract.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In 2002 capital expenditure in
the Oilfield services and Engineering  segment amounted to euro 233 million,  decreasing
by euro 71 million over 2001, down 23.4%, and concerned  mainly:  (i) the initial
 conversion phase of Maxita aimed at increasing its flexibility and efficiency and
seizing the opportunities of a strongly  developing market (the vessel will retain its
ability to lay flexible,  umbilical lines and mooring systems in deep waters, and will
also be provided with equipment for &#147;reel&#148;,  &#147;J&#148; and &#147;S&#148; laying);  (ii) the conversion of
the Mystras tanker ship purchased in 2001 into an FPSO system;  (iii) upgrade actions of
the 5820 package plant employed in the Libyan  offshore;  (iv) the preparation of the
drilling plants operating in Saudi Arabia for Aramco in 2002 and the purchase of
equipment to be employed in Astrakhan (Russia).</FONT></P>

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<a name="a36"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B>Recent developments</B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni has previsiously published
its first quarter results for 2004.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the first quarter of 2004
oil prices  continued  their upward  trends with the spot price for Brent,  a benchmark
 crude oil,  above the key level of 30 dollar/barrel due to geopolitical  developments
and strong demand for refined products in the United States and China.  Refining margins
fell with respect to the high level recorded in the first quarter 2003. The euro
appreciated markedly against the dollar. </FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the April-May 2004 two-month
period the spot price of Brent crude climbed to historical highs backed by strong demand
and geopolitical developments. Also refining margins hit historical level due to strong
demand for gasoline. Petrochemical margins improved slightly over the first quarter;
however, based on economic and industry conditions, management does not expect any
significant improvement in the near future. The euro continued to appreciate against the
dollar due to the process of adjustment of structural imbalances of U.S. economy;
management expects this movement in exchange rates to characterize the rest of 2004 and
to adversely impact Eni's results of operations in 2004.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The table below sets forth
certain indicators of some of these external factors for the periods indicated:</FONT></P>


<TABLE WIDTH=65% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN=2 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Three months ended March 31,</B> </FONT> </TD>
     <TD COLSPAN=2 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Two months April-May,</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004</B> </FONT> </TD></TR>
<TR>
<TD><FONT SIZE="1">&nbsp; </FONT></TD>
<TD COLSPAN=4><HR SIZE=1> </TD>
</TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average price of Brent dated crude oil(1) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31.51&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31.95&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25.29&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.53&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average price in euro of Brent dated crude oil </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29.37&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25.56&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22.56&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29.63&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average EUR/USD Exchange rate(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.073&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.250&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.121&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.199&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average European refining margin(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.81&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.21&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.33&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.59&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EURIBOR&#151;three-month euro rate % </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.6&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.1&nbsp; </FONT></TD></TR>
</TABLE>


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<DIV ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">________________</FONT></DIV>


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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman" SIZE=1>(1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman" SIZE=1>In
U.S. dollars per barrel. Source: Platt&#146;s Oilgram. </FONT></P></TD>
</TR>
</TABLE>

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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman" SIZE=1>(2)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman" SIZE=1>Source:
European Central Bank. </FONT></P></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman" SIZE=1>(3)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman" SIZE=1>In U.S.
dollars per barrel. FOB Mediterranean Brent dated crude oil. Source: Eni calculations
based on Platt&#146;s Oilgram data. </FONT></P></TD>
</TR>
</TABLE>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s net income for the first
quarter 2004 increased by 6.9% over the first quarter of 2003 due principally  to: (i)
higher net  extraordinary income,  related in particular to the  recognition  of a
material gain on the sale of shares  representing  9.054% of the share capital of Snam
Rete Gas SpA; (ii) an increase in volumes sold in particular in the Exploration &amp; Production
and Gas &amp; Power  segments.  As the price in dollars of Brent remained  approximately on
the same levels of the first quarter of 2003 (up 1.4%),  these positive factors were
partly offset by the negative impact of the 16.5% depreciation of the dollar over the
euro on operating income. Eni&#146;s operating  income for the first quarter of 2004 decreased
by 4.8% over the first quarter of 2003, due in particular to the decline  registered in
the:</FONT></P>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">Exploration &amp; Production
 segment (down 9.6%) related  essentially  to the  depreciation  of the dollar over the
euro and higher  writedowns of      mineral assets, the effects of which were offset in
part by higher  hydrocarbon  production sold, lower exploration costs and gains on the
sale      of mineral assets;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">Refining &amp; Marketing
segment (down 12%) due mainly to the depreciation of the dollar over the euro. These
 declines  were offset in part by an increase in operating  income  recorded by the Gas &amp; Power
 segment  related  essentially  to a growth in volumes sold of natural gas (up 7.2%) and
electricity (almost doubled), whose effects were offset by lower commercial margins.</FONT>
</P></UL>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s  net sales  from
 operations  (revenues)  for the first  quarter  of 2004  increased  by 2.4% over the
first  quarter  of 2003 due essentially to higher  volumes sold in Eni&#146;s main  operating
 segments,  the effects of which were  partially  offset by the negative  impact of the
16.5% depreciation of the dollar over the euro on operating income.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The depreciation of the euro
over other  currencies,  in particular the US dollar (as of March 31, 2004 the EUR/USD
exchange rate was down 3.2% over December 31, 2003)  determined  with respect to 2003
year-end an increase in the book value of net capital  employed,  of net equity and of
net borrowings.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net  borrowings  as of March
31, 2004  declined by 16.7% over  December 31,  2003,  due to: (i) cash flow  generated
 by operating  activities, influenced  also by  seasonality  effects;  and (ii) the
 divestment of assets in the  Exploration &amp; Production and  Petrochemical  segments.
 These positive factors were offset in part by financial  requirements  for capital
 expenditure and investment and the effects of changes in consolidation and of the
conversion of financial statements of subsidiaries denominated in currencies other than
the euro.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the first  quarter of 2004
 hydrocarbon  production  increased  by 8.7% as compared  to the first  quarter of 2003,
 due to: (i)  production increases mainly in Venezuela,  Nigeria,  Pakistan,  Egypt and
Kazakhstan;  (ii) the start-up of new fields mainly in Australia,  Angola,  Pakistan,
Nigeria and Norway.  These  increases were partly offset by declines in mature fields
mainly in Italy,  the United Kingdom and the United States and the effect of the
divestment of assets in the United Kingdom in 2003. The share of production outside Italy
was 82.9% (79.3% in 2003).</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Natural gas sales  (included
gas consumed by Eni)  increased by 7.2% as compared to the first quarter of 2003,  due to
higher sales in the rest of Europe.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Electricity production sold
increased by 99.2% as compared to the first quarter of 2003, due essentially to the
start-up of the first and second 390 megawatt generating units at the Ferrera Erbognone
plant (in October 2003 and in February 2004, respectively) and in March 2004 of the first
390 megawatt generation unit at Ravenna.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">The most relevant recent
developments occurred after December 31, 2003 are the following:</FONT></P>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">at the end of March
 2004,  Eni sold 9.054% of the share  capital of Snam Rete Gas SpA,  recognizing  a
material  gain on  disposal  and  material proceeds. Proceeds will be recognized in the
cash flow for the second quarter of 2004;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">in April 2004 Eni
signed an agreement with the Portuguese  Government for the reorganization of Galp
Energia (Eni&#146;s interest 33.34%).  See &#147;Item 4 &#150; Gas &amp; Power &#150; Development project&#148;.</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">In February  2004,
 under the North  Caspian Sea PSA (Eni is operator  with a 16.67%  interest),  the
 development  plan of the Kashagan oil field located in the Kazakh  section of the
Caspian Sea was  approved by the  relevant  Kazakh  Authorities.  The approved
 development  plan  consists of multiple phases;  management  expects production to start
in 2008. Total planned capital  expenditure is estimated at U.S. dollar 29 billion,
 being Eni&#146;s share in the range of U.S. dollar 5 billion. See &#147;Item 4 &#150; Exploration and
Production &#150; Kazakhstan&#148;</FONT>
</P></UL>


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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">Eni Shareholders&#146; Meeting of May 28, 2004
resolved to extend, until November 30, 2005 the Eni share buy-back program initiated in
2000, which provides for the purchase of a maximum of 400 million Eni shares for an
amount not higher than euro 5.4 billion.

On the same occasion, Eni shareholders&#146; meeting amended Eni by&#150;laws, which have filed herein as exhibit.
</FONT>
</P></UL>

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<a name="a37"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B>Management Expectations of
Operations</B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">According to management&#146;s  own
forecast, trends in 2004 of the key variables of the trading  environment that influence
Eni&#146;s results of operations are indicated below:</FONT></P>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">worldwide  demand for
oil is expected to increase by more than 1% over 2003 due to the recovery of world
economy  propelled by the USA, China      and Japan;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">Eni&#146;s forecast on oil
prices in 2004 indicates an average price for Brent crude above 32  dollars/barrel,  up
11% with respect to 2003 (28.84      dollars/barrel).  This forecast assumes the
 stabilization of demand in the second part of the year and increased supply on part of
both OPEC      and non-OPEC countries;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">in 2004 the euro is
 expected  to  continue  its  appreciation  over the dollar,  due to the  adjustment
 process of the USA current  account      deficit,  the  effects of which are offset in
part by the  different  growth  rates in the USA and the euro area.  Eni  forecasts  an
average      euro/dollar  exchange  rate of about 1.25 dollars per euro, a 10% increase
as compared to the average  exchange  rate of 2003 (1 euro = 1.131      US dollar);</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">the demand for natural
gas in Italy,  assuming  normal  temperatures,  is expected to remain at 2003 levels
(about 77 billion cubic  meters).      Management expects an increase in consumption of
natural gas in electricity  production due to the start-up of new generation  capacity to
be      offset by a decline in consumption of natural gas in the industrial sector as a
result of weak industrial activity;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">refining  margins in
Europe are expected to remain at the average levels  registered in the second half of
2003. The trend of margins will be      supported by the expected increase in demand for
gasolines in the USA and medium distillates in Asia.</FONT>
</P></UL>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">The following are management&#146;s
forecasts for Eni&#146;s key production and sales metrics in 2004:</FONT></P>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">daily production of
hydrocarbons (1.56 mmBOE/day in 2003), net of the effect of the rationalization of the
portfolio of mineral assets is forecasted to grow in line with the planned average growth
rate for the 2003-2007 period (approximately 5% per year). Eni expects that increases in
2004 will be achieved through production growth and start-ups outside Italy in areas
where Eni&#146;s presence is well established (Nigeria, Kazakhstan, Angola, Algeria and Libya)
and more recently acquired ones (Iran, Pakistan, Venezuela and Australia);</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">volumes of natural gas
sold in primary  distribution in Italy and the rest of Europe  (including  volumes of
natural gas consumed by Eni) are      expected to increase by about 5% (67.02 billion
cubic meters in 2003);  volumes  transported on behalf of third parties in Italy are
expected      to increase by about 9% (24.63  billion  cubic  meters in 2003) as a result
of the  forecasted  trends of demand and the  increase of volumes      supplied to
Italian importers who resell these volumes to Italian customers;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">electricity  production
 sold is expected  to increase by 100% (5.55  terawatthour  in 2003) due to the coming
 on-stream  of new  generation      capacity (1.4 gigawatt) in particular at the Ferrera
Erbognone and Ravenna sites (total generation capacity was 1.9 gigawatt in 2003);</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">total  refinery
 processing  intake on own  account is  expected to  increase  by about 3% (31.80
 million  tonnes in 2003) and  wholly-owned      refineries are expected to continue
running at full capacity;</FONT>
</P></UL>

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<UL><LI><P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">sales of refined
 products on retail  markets in Italy and the rest of Europe are expected to increase by
about 3% (14.01  million  tonnes in      2003);  average  throughput is expected to
increase both in Italy (1,813,000  liters in 2003) and in the rest of Europe  (2,378,000
liters in      2003).</FONT>
</P></UL>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">In 2004 capital expenditure is
expected to amount to approximately euro 8 billion; about 92% of capital expenditure will
be made in the Exploration &amp; Production, Gas &amp; Power and Refining &amp; Marketing segments.
The major projects concerned are: (i) in the Exploration &amp; Production segment, the
development of fields in Libya, Iran, Italy, Angola and Kazakhstan (Kashagan and
Karachaganak) as well as exploration; (ii) in the Gas &amp; Power segment, upgrade and
maintenance of Eni&#146;s primary and secondary natural gas transmission network, as well as
continuation of power station construction; (iii) in the Refining &amp; Marketing segment,
the construction of a gasification plant for the production of synthesis gas from heavy
fraction deriving from crude processing at the Sannazzaro refinery and the maintenance
and upgrade of the fuel distribution network.</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Overall in the next four year
period management plans to invest  approximately euro 25.5 billion in new capital
 expenditure;  over 90% of this new capital expenditure is planned be made in the
Exploration &amp; Production,  Gas &amp; Power and Refining &amp; Marketing segments.  Key planned
project are as follows:  (i) the development of proved  reserves of hydrocarbons in
Kazakhstan,  Lybia,  Iran,  Angola and Italy;  (ii)  exploration in selected areas;
 (iii) the  upgrading of the Italian  natural gas  transport and  distribution  networks;
 (iv) the  completion  of the  construction  of new electricity generation capacity in Eni&#146;s
industrial sites of Brindisi,  Ferrera Erbognone,  Mantova, Ravenna and Ferrara; (v)
interventions aimed at increasing the efficiency and the flexibility of Eni refining
 system;  (vi) the upgrading of Eni Italian and European  networks of service stations
for the marketing of petroleum products.<BR>In the near term, management plans to cover
financial requirements related to this new capital expenditure and also to the payment of
dividends by means of funds generated from operations. According to management&#145;s
estimates funds generated from operations under a mid-cycle scenario for oil prices
are sufficient to cover the
above mentioned financial requirements without the need to increase finance debt. The
above mid-cycle scenario is based on the following key assumptions: (i) the price of key
marker crude Brent is assumed at an average of 16 dollar/barrel in real terms, baseline
year 2000; and (ii) the US dollar -- euro exchange rate is assumed at parity. Management
uses these assumptions to evaluate the profitability of individual capital expenditure
projects.  Management would expect over time to change these assumptions if the current
levels of oil prices and the US dollar euro exchange rate persist for an extended period
of time. Management targets a leverage of 0.40 at the end of year 2007. In the next
four-year period management plans to pay dividends in line with dividends paid in
2001-2003 period (approximately euro 2.8 billion per year). See &#147;Item 8 &#150; Dividend Policy&#148;.</FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni is  experiencing
 some pricing  pressure in its core natural gas business in Italy as a consequence of the
opening of the domestic  natural gas market and the need to sell volumes of natural gas
purchased  under  take-or-pay  contracts to certain Italian natural gas operators in
order to comply with the mandatory  ceilings  provided for by the Italian  regulatory
system (See &#147;Item 4 &#150; Regulation of the Italian natural gas market&#148; and &#147;Item 3 &#150; Risk
factors&#148;).  Management expects Eni&#146;s operating profit in year 2004 to be affected by this
trend in its natural gas business.  However management  believes these negative  factors
to be offset almost  completely by the expected  growth in natural gas sales in other
European  markets and in  electricity  production  sold,  the expected  benefits
 following the  integration  of Eni marketing  policy in natural gas and  electricity
generation  businesses,  cost savings  associated from planned  efficiency  improvement
 actions and higher tariffs in natural gas transport outside Italy.In order to meet the
medium and long-term demand of natural gas in particular of the Italian market,  Eni
entered into long-term  purchase contracts with producing  countries that have a residual
average term of  approximately 17 years.  Existing  contracts,  which in general contain
 take-or-pay clauses,  will  ensure a total of about  67.3  billion  cubic  meters of
 natural  gas per year by 2008.  See  &#147;Item 4 &#150; Gas &amp; Power &#150;  Natural  gas purchases&#148;.
 Until year 2002 Eni&#146;s natural gas supply contracts have not entailed the application of
take-or-pay clauses. In 2003 due to a growth of the natural gas market in Italy lower
than  planned and to an increase of the volumes of natural gas  imported  into Italy by
third  parties,  Eni&#146;s offtake was lower than the minimum  contracted  volumes.  Eni has
 recognized  its  suppliers a cash advance of euro 6 million  providing to Eni the right,
 exercisable  within 10 years,  to withdraw  about 540 million cubic meters of gas after
 payment of the residual  portion of price and after having met the minimum offtake
 requirements  applicable in each year.  Management expects to recover the sum paid with
volumes withdrawn already in 2004, provided that the natural gas market grows according
to management&#146;s expectations.</FONT>
</P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The expectations  described
above are subject to risks,  uncertainties and assumptions  associated with the oil and
gas industry, and economic, monetary and  political  developments  in Italy and globally
 that are  difficult to predict.  There are a number of factors that could cause actual
results and  developments to differ  materially,  including,  but not limited to, crude
oil and natural gas prices;  demand for oil and gas in Italy and other markets;
 developments in electricity  generation;  price fluctuations;  drilling and production
 results;  refining margins and marketing margins;  currency  exchange rates;  general
economic  conditions;  political and economic  policies and climates in countries and
regions where Eni operates;  regulatory  developments;  the risk of doing  business in
developing  countries;  governmental  approvals;  global  political  events and actions,
 including war,  terrorism and sanctions;  project delays;  material  differences  from
reserves  estimates;  inability to find and develop reserves;  technological development;
 technical difficulties;  market competition;  the actions of field partners, including
the inability of joint venture  partners to fund their share of operating  or
 developments  activities;  industrial  actions by workers;  environmental  risks,
 including adverse weather and natural disasters; and other changes to business
conditions.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Off-Balance Sheet
Arrangements</I></B></FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni has entered into certain
 off-balance sheet arrangements,  including  derivative  financial  instruments,
 guarantees and other commitments,  as described in Note 23 to the Consolidated
 Financial Statements.  Eni's principal financial  obligations,  including commitments
under take-or-pay or ship-or-pay  clauses,  are described  under  "Contractual
 Obligations"  below.  See the Glossary for a definition  of  take-or-pay  or
 ship-or-pay clauses. </FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Off-balance sheet arrangements  comprise those arrangements that may potentially impact Eni&#146;s liquidity,  capital resources and results
of  operations,  even though such  arrangements  are not  recorded as  liabilities  under  generally  accepted  accounting  principles.
Although  off-balance sheet  arrangements  serve a variety of Eni&#146;s business  purposes,  Eni is not dependent on these  arrangements to
maintain its liquidity and capital  resources;  nor is management aware of any  circumstances  that are reasonably  likely to cause the
off-balance  sheet  arrangements  to have a material  adverse  effect on the  company&#146;s  financial  condition,  results of  operations,
liquidity or capital resources.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni has provided various forms of guarantees on behalf of unconsolidated subsidiaries and affiliated companies, mainly relating to
guarantees for loans, lines of credit and performance under contracts.  In addition, Eni has provided guarantees on the behalf of
consolidated companies, primarily relating to performance under contracts. These arrangements are described in Note 23 to the
Consolidated Financial Statements.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contractual Obligations</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table summarizes
the principal financial obligations which are described in Item 18&#151; Financial Statements&#151;Note
11 and 23.</FONT></P>

<TABLE WIDTH=70% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="44%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2005</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2006</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2007</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2008</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Thereafter</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million &#128;) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Long Term Debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,826&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">490&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,948&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,177&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">974&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">194&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,043&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Short Term Debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,428&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,428&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>sub total</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>16,254&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,918&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,948&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,177&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>974&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>194&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,043&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating leases relating to real estate rental in Italy</FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">821&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">75&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">78&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">81&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">430&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other Committments(off balance sheet): </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take-or-pay </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74,189&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,141&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,540&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,370&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,412&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,514&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,212&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ship-or-pay </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,000&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">500&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">490&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">490&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">510&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">520&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,490&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others(1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">547 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
</TABLE>


<TABLE WIDTH=70% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1)-Purchase of Goverment Bond from employees (in balance sheet as per US GAAP) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">181&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">181&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=44% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-Memorandum of intent relating Marghera </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">149&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-Memorandum of intent relating Val D'agri </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">217&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">133&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>547</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>243</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>43</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>43</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>43</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>42</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>133</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
</TABLE>




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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Other commitments&#148;  relating
to natural gas take-or-pay and ship-or-pay  contracts were calculated by applying the
forecasted prices of energy or services in the medium term scenario used in Eni&#146;s
 four-year plan to minimum take or minimum ship  quantities.  Management  expects
 amounts due under Eni  take-or-pay  and  ship-or-pay  contractual  obligations in years
 subsequent to year 2008 to be roughly in line with the average  amounts expected to be
paid in the 2004-2008 period.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Liquidity Risk</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s financial  operations are
managed  according to a centralized  model where financial  subsidiaries  have specific
roles and  assignments. Eni&#146;s Treasury Department coordinates and controls all
activities,  defines objectives and constraints in terms of financial structure, programs
and risk management.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidity risk is the risk that
suitable sources of funding for the Group&#146;s business  activities may not be available.
 The Group has access to a wide range of funding at competitive  rates through the
capital markets and banks. The Group believes it has access to sufficient  funding and
has also both committed and uncommitted borrowing facilities to meet currently
foreseeable borrowing requirements. See &#147;Net borrowings&#148; above.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Credit risk</I></B></FONT></P>



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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit risk is the potential
 exposure of the Group to loss in the event of  non-performance  by a  counterparty.  The
credit risk arising from the Group&#146;s normal commercial operations is controlled by
individual operating units within Group-approved  guidelines.  In addition, as a result
of its use of financial and commodity instruments,  including derivatives,  to manage
market risk, Eni has credit exposures through its dealings in the financial and
 specialized  oil and gas markets.  Eni controls the related  credit risk by entering
 into  contracts  only with highly  credit-rated counterparties  and through  credit
 approvals,  limits and  monitoring  procedures,  and does not usually  require
 collateral  or other  security. Counterparty  credit  validation,  independent  of the
dealers,  is undertaken  before  contractual  commitment.  Eni has not  experienced
 material non-performance by any counterparty.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Hedging</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The most important  currencies
for Eni are the euro and the U.S. dollar. See &#147;Item 3&#151;Risk Factors&#151; Exchange Rates&#148;.  Eni&#146;s
hedging policy is to minimize  foreign  exchange rate exposure  through a policy of
matching assets and liabilities  where  appropriate.  Eni also uses forward  exchange
contracts to hedge existing  receivables and payables,  including deposits and borrowings
 denominated in currencies other than the currency used in the relevant  financial
 statements.  At December 31, 2003,  the notional  amount of forward  exchange  contracts
was euro 6,165 million (euro 7,611 million as of December  31,2002) and the notional
amount of purchased  options was euro 550 million (euro 348 million as of December
 31,2002).  Eni does not enter into derivative transactions on a speculative basis.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni enters into  commodity
 hedging  contracts  for the purpose of reducing  its  exposure to changes in commodity
 prices in  connection  with specific  transactions,  including,  to a limited  extent,
 to mitigate  the effects of petroleum  price  fluctuations.  At December  31, 2003,  Eni
maintained for this purpose open derivative commodity contracts, the amounts of which
were not material.</FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni enters into various types
of interest rate contracts  (primarily  interest rate swaps,  forward rate  agreements
and interest rate collars) to manage its interest rate risk, to lower its funding costs
and diversify its sources of funding and to minimize  interest rate  exposures  arising
from mismatches  between assets and  liabilities.  At December 31, 2003, the notional
 amount of interest rate contracts was euro 5,764 million,  of which euro 5,690 million
(euro 5,555 million as of December  31,2002)  related to swaps and euro 74 million
 related to collars.  See Note 24 to the Consolidated Financial Statements.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I>Research and Development</I></B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For a description of Eni&#146;s
research and development operations in 2002, see &#147;Item 4 &#151;Research and Development&#148;.</FONT></P>


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<a name="a38"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2"><B>Summary of Significant
Differences Between Italian GAAP and U.S. GAAP</B></FONT></P>

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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s  financial  statements
 have been  prepared in accordance  with Italian GAAP,  which  differs in certain
 respects  from U.S.  GAAP.  The significant  differences between Italian GAAP and U.S.
GAAP, as applied to Eni&#146;s financial statements,  are: A) consolidation policy; B)
exploration &amp;  production  activities;  C)  valuation  of assets and  subsequent
 revaluation;  D) monetary  revaluation  of assets;  E) deferred tax assets and
liabilities;  F) depreciation of fixed assets; G) intangible assets; H) capitalized
 interest expense;  I) derivatives;  J) stock  compensation;  K) stock issuance costs; L)
marketable  securities;  M) costs related to site restoration and abandonment;  N)
treasury shares; O) extraordinary income and expense;  P) sales of government bonds; Q)
 reclassification  of inventory;  R) comprehensive  income; S) earnings per share; T)
guarantees;  U) liabilities  for  redundancies.  See Note 27 to the financial  statements
 for a more detailed  discussion of the  significant  differences  between Italian GAAP
and U.S. GAAP that affect Eni&#146;s financial  statements,  and Note 28 to the financial
 statements for a reconciliation of net income and shareholders&#146; equity between Italian
GAAP and U.S. GAAP.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consolidated operating income
reconciled to U.S. GAAP was euro 9,215 million, euro 7,861 million and euro 8,853 million
in 2003, 2002 and 2001, respectively, compared with consolidated operating income under
Italian GAAP of euro 9,517 million, 8,502 million and 10,396 million in those same years.
The significant effects on operating income by segment that arise from a reconciliation
to U.S. GAAP are as follows: (i) in 2002 and 2001, for the Oilfield Services and
Engineering and Gas &amp; Power segments the accounting for Saipem SpA and Italgas SpA,
including their subsidiaries, under the equity method for U.S. GAAP purposes, while the
same entities are consolidated for Italian accounting principles purposes; in 2003, for
the Oilfield Services and Engineering segment the accounting for Saipem SpA, including
its subsidiaries, under the equity method for U.S. GAAP purposes, while the same entities
are consolidated for Italian accounting principles purposes; (ii) for the Exploration &amp; Production
segment, the recapitalization of certain oil and natural gas exploration and development
costs that were fully or differently amortized in the same period under Italian accounting principles; (iii) for all segment, effect of asset impairments and revaluations; (iv) for all segments, effect of depreciation of
monetary revaluation of assets; (v) for Gas &amp; Power segments, effect of use of different rates of depreciation; (vi) for all segment, the
elimination of goodwill amortization; (vii)  for Gas &amp; Power segments, differences in fair value assigned to assets acquired in the purchase of a
business; (viii) for all segments, the recapitalization of interest on debt that was incurred in order to bring qualified assets to their intended
use and was expensed in the year incurred; (ix) for all segment, the effect of stock grants and options awarded to employees; (x) for all segment,
the effect of stock issuance costs; (xi) in 2003, for the Exploration &amp; Production segment, the effect related to site restoration and abandonment
liabilities; (xii) in 2002, for the Other activities segment, the effect related to reserves for contingencies; in 2003, for the Oilfield Services
and Engineering and Other activities segments, the effect related to reserves for contingencies; (xiii) for all segments, the reclassification of
restructuring costs into operating expense as required by U.S. GAAP. See Note 27 to the financial statements for the &#147;Summary of Differences
Between Italian and U.S. GAAP&#148; and Note 28 for a breakdown of operating income by segment under U.S. GAAP for the years 2001 through 2003.</FONT></P>


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<P ALIGN="justify">
<FONT FACE="times new roman" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income reconciled to U.S.
GAAP was euro 6,296 million, euro 5,292 million and 6,317 million in 2003, 2002 and 2001,
respectively, compared with consolidated net income under Italian accounting principles
of euro 5,585 million, euro 4,593 million and 7,751 million in those same years. In
addition to the effects discussed above, the reconciliation of consolidated net income to
U.S. GAAP was affected (i) in 2001, by adjustment of gains on disposals due to the
elimination of monetary revaluation and adjustment of gains on the sale of interests in a
consolidated subsidiary (Snam Rete Gas); (ii) in 2002 and 2003, by the effect of the
differences related to companies carried on the equity method; (iii) in 2001, 2002 and
2003 by the effect of deferred income taxes; (iv) ) in 2001, 2002 and 2003 by the effect
of derivative contracts.</FONT></P>

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<a name="a39"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 6.
   DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES</B> </FONT></P>


<a name="a40"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div><!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Directors and
Senior Management</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors  of Eni SpA&#146;s  currently in office  consists of eight  members.  The
table below sets forth the names of the eight  members of the Board of Directors,  their
 positions,  the year when each was initially  appointed as a Director and their ages.
This Board of Directors  was  appointed by the Ordinary  Shareholders&#146;  Meeting held on
May 30, 2002 for a three-year  period;  it will therefore expire at the date of the
General Shareholders&#146; Meeting approving Eni&#146;s financial statements for the financial year
2004. </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=35% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Position</B> </FONT> </TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year First Appointed<BR>to Board of Directors</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Age</B> </FONT> </TD></TR>
<TR>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Roberto Poli </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Chairman </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Vittorio Mincato </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Managing Director and CEO </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1998 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Mario Giuseppe Cattaneo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1998 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Alberto Cl&#244; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Renzo Costi </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1996 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dario Fruscio </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Guglielmo Antonio Claudio Moscato </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Mario Resca </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">59&nbsp; </FONT></TD></TR>
</TABLE>




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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
it remains a significant shareholder, the Ministry of Economy and Finance intends
to continue to participate in the nomination and election of Eni&#146;s Board of
Directors in order to protect its investment as a shareholder. During whatever period
the Ministry of Economy and Finance remains a majority shareholder, according to
Italian law, as confirmed by Decision No. 466/1993 of the <I>Corte Costituzionale
</I>(Constitutional Court), the <I>Corte dei Conti </I>(Court of Accounts) has the right and duty
to exercise a role as financial controller of Eni&#146;s operations in order to protect the
interest of the State as a shareholder. In order for the Court of Accounts to exercise
such control, a representative of the Court of Accounts attends the meetings of the
Board of Directors and the Board of Statutory Auditors of Eni without the right to
vote and Eni has the obligation to send to the Court of Accounts its financial
statements together with the reports of the Board of Directors, the Board of Statutory
Auditors and its external auditors. The representative of the Court of Accounts who
attends the meetings of the Board of Directors and Board of Statutory Auditors of Eni is
Luigi Schiavello (alternate Angelo Antonio Parente). On the occasion of Eni&#146;s Ordinary
Shareholders&#146; Meeting held on May 30, 2002 which appointed the current Board of
Directors, the Minister of Economy and Finance decided not to exercise its power to
appoint a member of the Board. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
June 5, 2002 the new Board of  Directors  delegated  to the  Chairman,  Roberto  Poli,
 powers  for  researching  and  promoting integrated projects and strategic
 international  agreements,  and appointed Vittorio Mincato Managing Director and CEO,
confirming the powers  already  delegated  to him by the  previous  Board of  Directors.
 In 2003 the  Board of  Directors  reviewed  Eni&#146;s  corporate governance system and on
September 17 defined the Board of Directors&#146;  exclusive  competencies and the Managing
 Director&#146;s  powers. On November 14, 2000 the Board of Directors of Eni  appointed
 Stefano Cao as General  Manager of the  Exploration  &amp; Production  division with those
powers as determined by the Board on the same date. Mr. Cao may be removed by the Board
of Directors of Eni without cause. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
January 30, 2001 the Board of Directors of Eni appointed  Luciano  Sgubini as General
 Manager of the Gas &amp; Power  division with those powers as defined by the Board on the
same date. Mr. Sgubini may be removed by the Board of Directors of Eni without cause. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
April 14, 2004 the Board of  Directors  of Eni  appointed  Angelo  Taraborrelli  as
General  Manager of the Refining &amp; Marketing division with those powers as defined by the
Board on the same date. Mr.  Taraborrelli  may be removed by the Board of Directors of
Eni without cause. Mr. Taraborrelli replaced Mr.Callera, who has reached the retirement
age </FONT></P>



<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
table below sets forth Eni SpA&#146;s executive  officers and the General  Managers of Eni&#146;s
three  divisions,  their  positions  within Eni, the year they were  appointed to such
 positions,  their total years of service at Eni and their ages.  The executive  officers
of Eni are appointed by the Managing Director of Eni and may be removed without cause. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% ALIGN=CENTER>
<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH=38% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Management Position</B> </FONT> </TD>
     <TD WIDTH=16% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year First<BR>Appointed to<BR>Current Position</B> </FONT> </TD>
     <TD WIDTH=16% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total Number<BR>of Year of<BR>Service at Eni</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Age</B> </FONT> </TD></TR>
<TR>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Stefano Cao </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">General Manager for the Exploration </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&amp; Production division </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Luciano Sgubini </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">General Manager for the Gas &amp; Power </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">division </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Angelo Taraborrelli </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">General Manager for the Refining &amp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Marketing division </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2004 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fabrizio D&#146;Adda </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Health Safety and the Environment </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62 </FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Vittorio Giacomelli </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Supply Operations </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64 </FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Carlo Grande </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER valign=bottom><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Legal Affairs </FONT></TD>
  <TD ALIGN=CENTER valign=bottom><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1986 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Roberto Jaquinto </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Administration </FONT></TD>
 <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1992 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">41 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62 </FONT></TD></TR>


<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Marco Mangiagalli </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Finance </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1993 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Leonardo Maugeri </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Strategies and International Relations </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40 </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eugenio Palmieri </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> &nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Public Affairs and Communication </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57 </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT colspan=5><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Luigi Patron </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Chief Technology Officer </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Renato Roffi </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The Group Senior Vice President for </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Human Resources </FONT></TD>
  <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32 </FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57 </FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The biographies of Eni&#146;s
directors and executive officers are set out below. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roberto
Poli was  appointed  Chairman of Eni SpA on May 30, 2002.  Recently he has founded and is
currently  President of Morelli &amp;Partners SpA, a consulting  firm for corporate  finance,
 mergers,  acquisitions  and  reorganisations.  He is also  President of Prof. Roberto
Poli e Associati  SpA.  From 1966 to 1998 he was  Professor of Business  Finance at the
 Universit&#224;  Cattolica of Milan.  He is Member of the Board of Directors of Fininvest
SpA,  Mondadori SpA,  Merloni  Termosanitari  SpA, G.D. SpA and general partner of Brafin
S.A.P.A. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vittorio
 Mincato was appointed  Chief  Executive  Officer of Eni SpA on November 19, 1998. He was
confirmed for a three-year  term (2002-2005)  by the Board  meeting held on June 5, 2002.
 This  appointment  capped an over  40-year-career  with the Eni group.  He is currently
a Member of the  Management  Board and of the Executive  Committee of  Confindustria
 (the General  Confederation  of Italian Industry)  where he is  Director  in charge of
the  Centre  of  Studies.  He is a Member of the  General  Confederation  of  Management
Committee of Assonime,  the  Association of Italian Public Limited  Companies and of CNEL
(National  Committee for Economy and Labour). He is Member of the Board of Directors of &#147;Fondazione
 Teatro alla Scala&#148;.  On July 14, 2003 the Milan  Polytechnic  Institute  awarded him the
honorary degree in Management Engineering. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mario
Giuseppe Cattaneo is a chartered  accountant,  public auditor and Professor of Corporate
Finance at the School of Business of Milan&#146;s  Universit&#224;  Cattolica del Sacro Cuore.  He
is currently  President of C.B.I.  Factor SpA,  Member of the Board of Directors of Otis
SpA,  Unicredito  Italiano  SpA,  UnicreditBanca  Audit SpA,  Luxottica  Group SpA and
Banca  Lombarda  SpA and Vice  President of Euromobiliare Fondi SpA and Euromobiliare
Alternative Investments SGR SpA </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alberto
Cl&#244; was Minister of Industry and Minister of Foreign  Trade ad interim in 1995 and 1996.
 Since 1997 he has been  President of the  Scientific  Committee of the Scuola  Enrico
 Mattei.  He is Member of the Board of Directors of GTP Holding SpA,  Sagat SpA and
Chairman of Aeroporto G. Marconi di Bologna SpA. He is also  President of the Scientific
 Committee of Eni Corporate  University and in 2003 he was appointed Director of ASM
Brescia SpA and Societ&#224; Autostrade SpA. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renzo
Costi is an attorney and a consultant.  He served as magistrate from 1964-68 and is
currently  Professor of commercial law at the  University  of Bologna.  He was founder,
 and currently is  co-director,  of the magazines  &#147;Giurisprudenza  Commerciale&#148;,  &#147;Banca
Impresa e Societ&#224;&#148; and &#147;Banca, Borsa e titoli di credito&#148;. He is member of the Board of
Directors of Editrice Il Mulino SpA. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dario
Fruscio is a chartered accountant,  public auditor and consultant; he is currently
Professor of Economy and Management at the University of Pavia and taught at the
Accademia Nazionale della Guardia di Finanza of Bergamo. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Guglielmo
 Antonio  Claudio  Moscato was President of Eni SpA from 1996 to 1999. He is currently
 President of the  Fondazione  Eni Enrico Mattei. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mario
Resca is Chairman and Managing  Director of  McDonald&#146;s  Italia SpA and Chairman of
Italia  Zuccheri SpA  (formerly  Eridania SpA), National Board member of U.P.A. (Union of
Associated  Advertising  Operators),  Chairman of Confimprese and Director of Mondadori
SpA and Member of the Board of liquidators of Cirio Del Monte Group in extraordinary
administration. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stefano
Cao joined the Eni group as a technical  engineer active mainly in offshore
 construction.  He then became general manager, managing director and chairman of Saipem
SpA, and is at present General Manager of Eni&#146;s Exploration &amp; Production division. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luciano
Sgubini,  mining engineer,  was involved in hydrocarbon  production  activities of Agip
SpA. He served various positions in the Eni group such as Vice  President  of Agip SpA,
 Chairman  and CEO of Saipem SpA and  Chairman of Snam SpA until he became  General
Manager of Eni&#146;s Gas &amp; Power division. He is a member of the Board of Directors of many
Eni group companies. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Angelo
 Taraborrelli,  graduated in law,  joined the group as expert in analysis  evaluation
 and control of investments in the oil market.  After the merger of  AgipPetroli  with
Eni he was  appointed  Deputy Chief  Operating  Officer of Eni SpA Refining &amp; Marketing
division  for  Marketing  Operations  and on April 14, 2004 he became  General  Manager
of Eni&#146;s  Refining &amp;  Marketing  division.Carlo Grande,  attorney at law,  joined the Eni
group in 1977 and has served as senior vice  president  for legal affairs since 1986. He
is a member of the Board of Directors of various Eni companies. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Carlo
Grande,  attorney at law,  joined the Eni group in 1977 and has served as senior vice
president for legal affairs since 1986. He is a member of the Board of Directors of
various Eni companies. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Roberto
Jaquinto, a registered auditor,  joined the Eni group in 1962 and served in various
 administrative  management  positions, until he became senior vice president for
 administration  and responsible for Eni financial  reporting and accounting.  He is a
member of the Board of Directors of many Eni group companies. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Marco
 Mangiagalli  worked for the Barclays Group and other Italian  merchant banks before
joining the Eni group. He is a member of the Board of Directors of various Eni companies.
He is responsible, among other things, for Eni&#146;s treasury operations. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Parag 8" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leonardo
Maugeri,  after extensive academic  experience  acquired also outside Italy, joined the
Eni group in 1994, holding various positions  mainly as counsel for  strategic
 decisions.  He is a member of the  executive  council of Censis and of the  Commission
 on international relations at Confindustria. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Renato
Roffi joined the Eni Group in 1971 and held various positions in Eni&#146;s  subsidiaries
until he became the Group&#146;s senior vice president  for human  resources in 2000.  He is a
member of the Board of Directors of various Eni  companies and Vice Chairman of ASIEP
(the Italian association of energy and petroleum companies). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Vittorio
Giacomelli,  a chemical engineer,  started his career in Germany,  joined the Eni group
in 1968 and held various positions in Eni&#146;s subsidiaries until he became the Group&#146;s
senior vice president for procurement. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eugenio
Palmieri  qualified as journalist in 1971 and worked as correspondent  for &#147;Il Sole 24-Ore&#148;,
 &#147;Il Tempo&#148;,  &#147;La Stampa&#148;.  In 1991 he was appointed  Head of Press Office and later also
 supervisor  of External  Relations.  In May 1995 he was appointed  Managing Editor of
Agi News Agency, a subsidiary of Eni and the second largest Italian newswire. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Luigi
Patron is Chief  Technology  Officer of Eni and Chairman of Snamprogetti  SpA, the
engineering  company of the Eni Group. Mr. Patron&#146;s  industrial  career started with
Montefibre SpA at Porto Marghera.  In 1991, he became Chairman of Montefibre SpA and
Chairman of EniChem Fibre SpA. From June 1993 to May 1996, Mr. Patron was Managing
Director of EniChem SpA. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fabrizio
D&#146;Adda,  mining engineer,  joined the Eni group in 1968. He held various  positions such
as Vice President of Snamprogetti SpA,  Chairman of Saipem SpA,  Chairman of Enichem SpA
and  Chairman of Polimeri  Europa SpA. He is a member of the Board of  Directors and of
the  Executive  Committee of Cefic and  President of the  Financial  Committee  of Cefic.
 He is also a member of the  Executive Committee of Confindustria. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Auditors</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory
Auditors</I> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Italian legislation  requires Italian listed corporations to have a board of statutory
auditors composed of independent experts in accounting matters and in matters specified
in such corporations&#146;  by-laws.  Eni SpA&#146;s Board of Statutory Auditors is elected by the
shareholders  meeting,  with the exception of the Chairman thereof,  who is appointed by
the Ministry of Economy and Finance. See &#147;Item 10.  Additional  Information&#151;  Memorandum
and Articles of  Association&#151;Limitations  on Voting and  Shareholdings&#151;Special  Powers of
the State&#148;. Eni SpA&#146;s by-laws currently provide that the Board of Statutory Auditors
consists of five effective  statutory auditors and two alternate  auditors  (each of them
 automatically  substitutes an effective  auditor who resigns or is otherwise  unable to
serve as an auditor elected in the same list). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following  table sets forth the names,  positions and year of appointment of the members
of the Board of Statutory  Auditors of Eni, who were elected on May 30, 2002.For a
description of the duties of the Board of Statutory Auditors see below. </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Position</B> </FONT> </TD>
     <TD WIDTH="50%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year First Appointed<BR>to Board of Statutory<BR>Auditors</B> </FONT> </TD></TR>
<TR>
     <TD><hr size="1"> </TD>
     <TD><hr size="1"> </TD>
     <TD><hr size="1"> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Andrea Monorchio </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Chairman </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1995 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Luigi Biscozzi </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Auditor </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Paolo Andrea Colombo </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Auditor </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Filippo Duodo </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Auditor </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1998 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Riccardo Perotta </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Auditor </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fernando Carpentieri </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Alternate Auditor </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1995 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Giorgio Silva </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Alternate Auditor </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999 </FONT> </TD></TR>
</TABLE>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>External
Auditors</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
provided for by Italian laws,  external  auditors must be a chartered  company and are
appointed by the  Shareholders&#146;  Meeting. Eni&#146;s external auditors,
 PricewaterhouseCoopers SpA, were appointed by the Shareholders&#146; Meeting of June 1, 2001
for a three-year term ending  with the  Meeting  approving  financial  statements  for
2003.  Eni&#146;s  Shareholders&#146;  Meeting  of May 28,  2004  confirmed  the appointment of
 PricewaterhouseCoopers  SpA for a further three year period ending with the Meeting
approving financial  statements for 2006. </FONT></P>

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<a name="a41"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compensation</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
Note 29 to the consolidated financial statements for a description of stock grant and
stock option plans. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Consob  Decision No. 11971 of May 14,  1999,  as amended,  compensation  of  Directors
of Eni,  statutory  auditors and general  managers of Eni&#146;s  divisions is reported in the
table below,  which includes all the persons who held a position in 2003, also for a
fraction of the year. </FONT></P>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The column  &#147;Compensation
 for  positions  held at Eni SpA&#148;  includes  compensation  decided by the  shareholders&#146;  meeting
 and        compensation of the Chairman and the Managing  Director set by the Board of
Directors,  in agreement with the Board of Statutory        Auditors, pursuant to article
2389, subsection 2 of the Italian Civil Code; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the column &#147;Non
monetary benefits&#148; indicates all fringe benefits, including insurance policies; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the column  &#147;Bonuses
and other  incentives&#148;  indicates  the variable  part of the  compensation  of the
 chairman,  the Managing        Director and General Managers of Eni&#146;s divisions; </FONT></P></UL>

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<UL><LI><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>the column &#147;Other
 compensation&#148;  indicates the salary of the Managing Director and of the General Managers
 (employees of Eni),        as well as the compensation for positions held in other Eni
companies. </FONT></P></UL>





<TABLE WIDTH=80% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=28% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Position</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Compensation<BR>for<BR>position</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non cash<BR>benefits</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Bonuses<BR>and other<BR>incentives</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other<BR>compensation</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD></TR>
<TR>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(thousand &#128;)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Board of Directors</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Poli Roberto </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Chairman </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">520&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">227&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">756&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Mincato Vittorio </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Managing Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">490&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">788&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">927&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,205&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cattaneo Mario Giuseppe </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">85&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">105&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cl&#244; Alberto </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">85&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">105&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Costi Renzo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">83&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">103&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fruscio Dario </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">87&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">107&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Moscato Guglielmo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">88&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">108&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Resca Mario </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Director </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Board of Statutory Auditors</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Monorchio Andrea </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Chairman </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Biscozzi Luigi </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effective Auditor </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46<sup>(1)</sup> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">140&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Colombo Paolo Andrea </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effective Auditor </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23<sup>(2)</sup> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Duodo Filippo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effective Auditor </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47<sup>(3)</sup> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">133&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Perotta Riccardo </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effective Auditor </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">93&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20 <sup>(4)</sup> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">113&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>General Manager E&amp;P division</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cao Stefano </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">262&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">576&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">838&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>General Manager G&amp;P division</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sgubini Luciano </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">267&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">573&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">840&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>General Manager R&amp;M division</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Callera Gilberto </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">351&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">469&nbsp;&nbsp;&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">820&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD ALIGN="CENTER"> </TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD>
     <TD ALIGN="CENTER"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,003&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,015&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,681&nbsp;&nbsp;&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,708&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
</TABLE>



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<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>________________________ </FONT></DIV>


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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1> (1)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes
compensation for the position of effective Statutory Auditor of Syndial SpA (former
EniChem SpA) and Polimeri Europa SpA.</FONT></P></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes
compensation for the position of Director of Saipem SpA from May 2 to December 31, 2003.</FONT></P></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(3)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes
 compensation for the position of effective  Statutory  Auditor of Snamprogetti SpA and
Chairman of the Board of Statutory<BR>    Auditors of Consorzio Eni per l&#146;Alta Velocit&#224; &#150; Cepav
Uno.</FONT></P></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(4)  </FONT></TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes
compensation for the position of effective Statutory Auditor of Enifin SpA.</FONT></P></TD>
</TR>
</TABLE>




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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the year ended  December 31, 2003,  the aggregate  compensation  paid to or on behalf of
the executive  officers of Eni SpA was euro 7.80 million.  The foregoing  amounts include
 salaries,  fees for attending  meetings,  lump-sum  amounts paid in lieu of expense
reimbursements,  stock option, stock grant and health and pension  contributions.  The
foregoing amounts do not include amounts accrued to the reserve for employee  termination
 indemnities,  which is used to pay severance pay as required by Italian law to employees
upon termination of  employment.  The members of the Board of Directors in their capacity
as such are not entitled to receive such severance pay. At December 31, 2003,  the total
amount  accrued to the reserve for employee  termination  indemnities  with respect to
members of the Board of  Directors  who were also  employees  of Eni,  with respect to
three  General  Managers and with respect to the  executive officers of Eni SpA was euro
4.19 million. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth the amount and maturity of stock options granted to Eni&#146;s Chief
Executive Officer,  General Managers and executive officers in 2003: </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Options granted in the year </FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Options held at year end </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">753,500&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,418,500&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Number of options </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Average exercise price (euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,743&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,434&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Maturity (days) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,096&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">772&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expiration (days) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,834&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,551&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Weighted average exercise price for </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">options existing as of December 31, 2002 (euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,216</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exercise price for options granted in 2003 (euro)</FONT></TD>
<TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,743&nbsp; </FONT></TD></TR>

</TABLE>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The information in the
table above is current to June 14, 2004. No additional  options have been granted from
December 31, 2003 to that date. Eni issues only ordinary shares. For further information on
Eni&#146;s stock compensation see &#147;Note 29 to the Consolidated Financial Statements&#148;. </FONT></P>


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<a name="a42"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Board practices</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Appropriate
conduct</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Due
to the complex  scenario in which Eni operates,  the Board of Directors has deemed it
appropriate to provide a clear definition of the value  system  that Eni  recognizes,
 accepts  and  upholds  and the  responsibilities  that Eni  assumes  within  its group
and externally in order to ensure that all Group activities are conducted in compliance
with laws, in a context of fair  competition,  with honesty,  integrity,  correctness
 and in good faith,  respecting  the  legitimate  interests of  shareholders,  employees,
 suppliers, customers,  commercial and financial  partners and the communities where Eni
operates.  All those working for Eni, without exception or distinction,  are committed to
observing these  principles  within their function and  responsibility  and to make
others observe them. The belief of working for the advantage of Eni cannot be a
justification for behaviours  contrary to such principles.  These values are stated in a &#147;Code
of Conduct&#148;  whose  observance by employees is evaluated by the Board of Directors.  The
Code of Conduct is published in Eni&#146;s internet site (www.eni.it). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
its meeting of January 20, 2000 Eni&#146;s Board of Directors  resolved to adopt the
 Self-discipline  Code of Listed  Companies (the &#147;Code&#148;) and, pursuant to a thorough
review of the matter,  underscored how Eni&#146;s  organizational  model is essentially in
line with the principles expounded in the Code, as well as with related recommendations
issued by Consob. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance  with the request of Borsa Italiana SpA, in particular the  &#147;Guidelines  for
the  preparation of the yearly report on corporate  governance&#148;  of February 12, 2003,
 follows  information  on Eni&#146;s  corporate  governance  system.  In preparing this report
account  has been taken  also of the &#147;Guide to the  preparation  of the report on
 corporate  governance&#148;  published  by  Assonime  and Emittenti Titoli SpA in February
2004. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
Board of Directors: competencies, delegate powers and composition</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
 organizational  structure  follows the traditional  model of companies in which
 management is exclusively  entrusted to the Board of Directors,  which is the central
 element of Eni&#146;s  corporate  governance  system.  Monitoring  functions are entrusted to
the Board of Statutory Auditors and accounting control is entrusted to external auditors
appointed by the Shareholders&#146; Meeting. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors delegated specific powers to the Chairman and Managing Director,  who
are the representatives of the company according to article 25 of Eni&#146;s by-laws. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with the internationally  accepted principles of corporate governance,  the
Board of Directors established committees with consulting and proposing functions. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 the Board of Directors  thoroughly  reviewed  Eni&#146;s  corporate  governance  system;
 in addition to exclusive  competencies entrusted to it by art. 2381 of the Civil Code,
the Board has reserved the following tasks: </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
  to define corporate governance rules for the Company and Group companies,  including
the appointment,  definition of functions and regulations of Board Committees; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.
  to define  guidelines for the internal  control system,  based on indications  provided
by the relevant Board  Committee,  and monitor the effectiveness and modes of managing
main corporation risks; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.
  to examine and approve the main features of corporate and Group  organization,
 checking the effectiveness of the organization and administration setup prepared by the
Managing Director; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.
  to determine &#150; on proposal of the Managing Director &#150; strategic guidelines and
objectives at the Company and Group level; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.
  to examine and approve multi-annual strategic, industrial and financial plans at the
Company and Group level; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.
  to examine and approve yearly budgets of Divisions, of the Company and the consolidated
Group budget; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
  to evaluate  and approve  quarterly  accounts and related  disclosure  and any other
 period  accounts and related  disclosure provided for by the law and to compare
quarterly results with planned results; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
  to evaluate the general trends in operations with specific attention to possible
conflicts of interest; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.
  to examine and approve strategically relevant agreements; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.
 to receive from Directors entrusted with specific powers timely reports describing the
activities  performed under such powers and the most relevant  transactions,  according
to a specific  previously agreed definition,  and any atypical or unusual relations and
transactions with related parties; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.
 to receive from Board Committees  periodic reports on activities  performed,  according
to previously  agreed  definitions and timetables; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.
 to  attribute,  modify  and  revoke  powers to  Directors,  defining  their  limits and
modes of  execution,  determining  the compensation  related to such powers,  after
 consultation  with the Board of Statutory  Auditors.  To deliver  guidelines to
empowered Directors and to recall to itself transactions included in the delegated power; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.
 to approve,  based on the indications of the relevant Committee,  the adoption and
implementation of share incentive plans and to define the compensation criteria of top
managers; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.
 to appoint,  revoke and delegate powers to general  managers,  on proposal of the
Managing  Director and in agreement with the Chairman; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.
 to decide major sale and purchase  transactions  of the Company and to provide a
pre-emptive  evaluation  of those  concerning Group companies, in particular: </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)
    sale and purchase transactions as well as conferral of real estate, investments,
 companies of amounts exceeding euro 50 million, </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)
     capital  expenditure in tangible and intangible  assets with great  significance
 for the Group in terms of strategic impact and risks,  and however all those of amounts
 exceeding  euro 100  million,  as well as any  initiatives  of the  Exploration  &amp;Production
Division in new areas, </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)
    the provision of loans from Eni or its subsidiaries to third parties, </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)
     the provision from Eni of personal or real guarantees to third parties in the
interest of Eni or its  subsidiaries of an amount exceeding euro 50 million, </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)
    the  provision of loans from Eni or its  subsidiaries  to  affiliates  as well as of
real and personal  guarantees on their  bonds of amounts  exceeding  euro 50  million
 and,  in any case,  if the  amount is not  proportional  to the stake held in the
affiliate; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.
 to examine and decide any proposal of the  Managing  Director  concerning  voting and
 appointment  of members of the Board of Directors and the Board of Statutory Auditors of
major subsidiaries; </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.
 to formulate all the proposals of decisions to be presented to the Shareholders&#146; Meeting. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board  entrusted  the Chairman with powers to conduct  strategic  international
 relations  and the Managing  Director with all managing powers except those that cannot
be delegated and those reserved to the Board. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with article 27 of Eni&#146;s by-laws, the Chairman chairs Shareholders&#146; Meetings,
 convenes and chairs Board of Directors meetings and oversees the implementation of
decisions made by it. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance  with article 23 of Eni&#146;s  by-laws,  the Chairman and the Managing  Director
 report timely to the Board of Statutory Auditors,  at least quarterly and at each Board
meeting,  on activities  performed and major  transactions of Eni and its subsidiaries,
in particular on those entailing possible conflict of interest. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
 accordance  with  article 17 of Eni&#146;s  by-laws,  the Board of  Directors  is composed of
3 to 9 members.  The present  Board of Directors is made up by 8 members elected by the
 Shareholders&#146;  Meeting of May 30, 2002 for a three-year  term,  their mandate expires
with the Meeting  convened to examine  financial  statements  as of December 31,  2004.
 In the Meeting of May 30, 2002 the Economy and Finance  Minister  chose not to appoint
one member of the Board,  in  agreement  with the  Minister of  Productive  Activities,
 as per article 6 of Eni&#146;s by-laws.  The  appointment of the Board of Directors  (except
for the Director  appointed by the Economy and Finance Minister)  calls  for a list  vote
in order to  ensure  presence  of  representatives  of  minority  equity  interests  on
the Board of Directors.  The lists must be deposited at Eni&#146;s  headquarters at least ten
days before the date set for the  Shareholders&#146;  Meeting in first call, published on
newspapers with national distribution and include a resume of each candidate. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Board
members must comply with the honorability and independence  requirements provided for by
applicable  regulations,  as well as the  professionalism  and experience  required for
performing their duties with efficacy and efficiency,  to which they are expected to
dedicate adequate time and resources. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Board
committees</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to carry out its tasks more  effectively,  the Board of Directors has instituted
three advisory  Committees:  the Internal Control  Committee and Compensation  Committee,
 which were formed  exclusively by independent (in accordance with standards  currently
applicable to Eni as a foreign  private  issuer),  non-executive  Board members in 2003,
 and the Oil &amp; Gas Committee in which also the Managing  Director  participates.
Board members do not receive  additional  compensation  for performing
their functions in Board committees. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Committees are formed as follows: </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Internal
Control Committee</I>: Mario Giuseppe Cattaneo (Chairman), Alberto Cl&#244;, Renzo Costi and
Guglielmo Antonio Claudio Moscato. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compensation
Committee</I>: Mario Resca (Chairman), Mario Giuseppe Cattaneo, substituted in February
2004 by Roberto Poli, and Renzo Costi. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oil
&amp; Gas Committee</I>: Alberto Cl&#244;, Dario Fruscio, Vittorio Mincato and Guglielmo Antonio
Claudio Moscato. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Code suggests the creation of a &#147;Committee for  appointment  proposals&#148; in the companies
with shares held widely by the public, especially when the Board notices that
shareholders  find it difficult to prepare  proposals for  appointments.  This committee
has not been formed because, as mentioned above, candidate lists are usually accompanied
by the candidates&#146; curricula. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Internal
Control Committee</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Internal  Control  Committee,  established  by the Board of Directors in 1994,  based on
the decisions  adopted by the Board on October 18, 2000 and  November 7, 2003,  holds
 functions  of  supervision,  counsel  and  proposal in the area of  monitoring  general
management issues. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the meeting of November 7, 2003 the Board approved the  Committee&#146;s  regulation  and
specified its functions (the  regulation is available on Eni&#146;s internet site).  In its
meeting of November 28, 2003 the Board appointed Mario Giuseppe  Cattaneo as Chairman of
the Internal Control Committee. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In the course of 2003
the Internal Control Committee  convened 11 times, with an average  participation of 86%
of its members,  and has accomplished the following:  (i) reviewed the audit programs
prepared by Eni SpA&#146;s and Group companies&#146; internal audit functions;  (ii) reviewed  and
 evaluated  results  of Eni  SpA&#146;s  and  Group  companies&#146;  internal  auditing
 procedures;  (iii)  met  with  top  level representatives  of  administrative  functions
 in the main  subsidiaries,  chairmen  of  boards of  statutory  auditors  and  partners
responsible for external audit  companies to examine the essential  features of 2002
financial  statements  with specific  reference to extraordinary  transactions,
 transactions  with related parties and relations  among functions  entrusted with
controls at Eni SpA and its  subsidiaries;  (iv) monitored the  development of the
operational  model of the internal audit function;  (v) met with the Group&#146;s main
 external  auditor in order to discuss the  requirements  of new U.S.  legislation,
 including  that  relating to the  function of auditors;  (vi) reviewed its  regulation
in order to adjust it to the &#147;July 2002 revised  edition&#148; of the  Self-discipline  Code
of the Committee for Corporate  Governance of listed  companies and in light of the
provisions of the  Sarbanes-Oxley  Act; (vii) reviewed the situation  of  appointments
 of external  auditors of main group  companies,  the relevant  accounts and the opinions
 contained in the reports of  external  auditors of Eni&#146;s  Italian  subsidiaries;  (viii)
 examined  the issues  related to the option of  appointing  to additional functions
companies belonging to the network of the external auditors,  expressing its opinion;
 (ix) defined the additional functions that can be requested to the external  auditors;
 (x) examined and monitored the activities devised by Eni for the compliance with rules
 introduced  by  Legislative  Decree No.  231/2001 as amended;  (xi) extended the scope
of work of the Group&#146;s main external auditor to listed  subsidiaries  and analyzed the
operating  modes of the bidding process for the conferral of the function of external
auditors for the 2004-2006 period. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, Eni&#146;s external auditors met with Eni Internal Control Committee in order to
discuss:  (i) critical  accounting  policies and  practices  applied for the purpose of a
proper  representation  of Eni&#146;s  results of  operations  and  financial  condition;
 (ii) alternative  accounting  treatments provided for by generally accepted accounting
 principles  concerning material items discussed with management,  including
 ramifications  of the use of, the impact deriving from the
application of said alternative disclosures and treatments and relevant  information,  as
well as the treatments preferred by external auditors;  (iii) the contents of any other
material written communication between external auditors, and management. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
January  2004,  the  Committee  examined  the  results of the bid and  expressed  to the
Board its  favourable  opinion  for the appointment of PricewaterhouseCoopers SpA as
external auditor for 2004-2006 financial statements. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compensation
Committee</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Compensation  Committee,  established by the Board of Directors in 1996, proposes
incentive schemes for managers and the yearly remuneration  of the  Chairman  and
 Managing  Director to the Board of  Directors  and  overviews  the  criteria  used in
 determining compensation of the Group&#146;s top management. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003, the Committee met three times, with an average  participation of 90% of its
members,  and accomplished the following:  (i) reviewed the  objectives of the 2003 Group
 Performance  and  Incentive  Plan and the results of the 2002 plan,  with  reference to
the proposal to the  Shareholders&#146;  Meeting to authorize the Board of Directors to use
treasury  shares for the 2003-2005  Stock Grant Plan (see  Incentive  plans  for Eni
 managers  with Eni  stock in Note No. 29 to Eni's  Financial  Statements  below);  (ii)
 examined  the assignation  schemes of the stock option and stock grant plans for 2003 to
be approved by the Board of  Directors;  (iii)  examined the results of 2002 in order to
determine the fixed and variable  remuneration  of Directors and the proposal  concerning
the variable part of the remuneration of the Chairman and Managing  Director;  (iv)
reviewed the guidelines and criteria of the  remuneration  policy for Group managers. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the meeting of February 26, 2004 the Board approved the  Committee&#146;s  regulation and
specified its functions (the  regulation is available on Eni&#146;s internet site). In the
same meeting the Board appointed Mario Resca as Chairman of the Compensation Committee. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Oil
&amp; Gas Committee</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Oil &amp; Gas  Committee,  established by the Board of Directors in 2002, is entrusted with
the monitoring of trends in oil markets and the study of their aspects. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
2003 the Oil &amp; Gas Committee met three times, with an average  participation of 95% of
its members, and examined:  (i) the issue &#147;Hydrocarbons  in the Caspian  basin:  problems
and  perspectives&#148;  with  particular  attention to the various  options  related to the
transmission of hydrocarbons from Eni&#146;s production sites in Kazakhstan.  To this end
market aspects,  economic and geopolitical  issues were  examined for each
 transportation  route.  Further  study is ongoing on this  matter;  (ii) the issue  &#147;Eni&#146;s
 growth  options by external  lines&#148;.  The  international  oil  scenario  and the
 behaviour of Eni&#146;s main  competitors  were  analyzed in terms of growth, portfolio and
efficiency policies in order to base Eni&#146;s strategic  considerations on international
 growth opportunities in the short, medium and long-term. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Board
of Statutory Auditors</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Statutory  Auditors,  in accordance with article 149 of Legislative Decree No.
58/1998,  monitors the respect of laws, of Eni&#146;s  memorandum  of  association,  of the
 principles  of proper  administration,  the  adequacy of the  company&#146;s  organizational
structure for the parts concerning  administration and accounting,  internal controls and
Eni&#146;s  administration and accounting systems, as well as its reliability in presenting
 information  properly and the adequacy of regulations  imposed to  subsidiaries
 according to article 114, line 2 of the mentioned decree. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Statutory Auditors comprises five auditors and two substitute auditors,  all
appointed by the Shareholders&#146; Meeting of May 30, 2002 for a three-year  term,  their
mandate expires with the Meeting  convened to examine  financial  statements as of
December 31,  2004.  The Chairman was  appointed  on May 29, 2002 with decree of the
 Minister of Economy and Finance in  consultation  with the Minister for Productive
 Activities,  in accordance  with article 6 of Eni&#146;s by-laws.  The Board of Statutory
 Auditors is appointed in accordance  with articles 17 and 28 of Eni&#146;s  by-laws,  which
call for a list vote in order to ensure  presence of  representatives  of minority equity
 interests on the Board of Statutory  Auditors.  Auditors are autonomous and independent
even from the shareholders who elected them. The lists of candidates  include a resume of
each candidate and are deposited at the company&#146;s  headquarters  at least 10 days before
the date of the Shareholders&#146; Meeting in first call and are published on national
newspapers. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 19, 2001 Eni&#146;s Shareholders&#146;  Meeting modified art. 28 of Eni&#146;s by-laws in order
to include the provisions contained in the Decree of the  Minister  of Justice No. 162 of
March 30,  2000,  concerning  the  honorability  and  professional  requirements  of
auditors of listed  companies.  Eni&#146;s by-laws state that at least two auditors and one
 substitute  auditor are chosen among  chartered auditors and must have performed
 auditing  activities for at least three years and that auditors not provided with these
 requirements must be chosen  among those  provided  with the level of  professionalism
 described in Decree No.  162/2000.  For the purposes of said Decree, the by-laws define
as related subjects commercial law, corporate economy and finance,  engineering and
geology.  Eni&#146;s auditors are all chartered auditors. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Statutory Auditors is made up of the Chairman,  Andrea Monorchio, four auditors,
Luigi Biscozzi, Paolo Andrea Colombo, Filippo Duodo and Riccardo Perotta,  and two
substitute  auditors,  Fernando Carpentieri and Giorgio Silva. The resumes of auditors
are published in Eni&#146;s web site. Paolo Andrea Colombo,  Filippo Duodo and Fernando
 Carpentieri were candidates in the list of the Ministry of Economy and Finance;  Luigi
 Biscozzi,  Riccardo  Perotta and Giorgio Silva were  candidates in the list presented by
 institutional investors coordinated by Arca SGR SpA. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Statutory
auditors receive in advance adequate and thorough  information on all issues subject to
Board evaluation and resolutions. Eni&#146;s by-laws allow meetings held by teleconference. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 30, 2002 the Shareholders&#146;  Meeting determined the compensation for the Chairman of
the Board of Statutory Auditors and each Auditor  amounting to euro 87,000 and euro
58,000  respectively and euro 1,000 for the presence to each meeting,  as well as payment
of reasonable attendance expenses. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
provided for by Italian laws,  external  auditors must be a chartered  company and are
appointed by the  Shareholders&#146;  Meeting. Eni&#146;s external auditors,
 PricewaterhouseCoopers SpA, were appointed by the Shareholders&#146; Meeting of June 1, 2001
for a three-year term ending with the Meeting approving financial statements for 2003. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Special
Powers of the State</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a description  of the special  powers of the State,  see &#147;Item 10 &#150; Memorandum  and
Articles of  Association  &#150; Limitations  on Voting and Shareholdings &#150; Special Powers of
the State&#148; below. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investor
relations and information processing</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
concert with the launch of its privatization  process, Eni adopted a communication policy
aimed at promoting an ongoing dialogue with institutional  investors,  shareholders and
the markets to ensure systematic dissemination of exhaustive and prompt information on
its activities,  with the sole limitation  imposed by the  confidential  nature of
certain  information.  Information made available to investors,  markets and the press is
provided in the form of press  releases,  regular  meetings with  institutional
 investors and the financial  community and the press,  in addition to general
 documentation  released and constantly  updated on Eni&#146;s internet site and sites of the
Group&#146;s main companies. Investor and shareholder relations are handled by special Eni
functions. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relations
with investors and financial  analysts are held by the Investor  Relations office.
 Information is available on Eni&#146;s web site and can be requested to the
investor.relations@eni.it mailbox. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relations
with the press are held by the manager heading the Relations with the press unit. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relations
 with  shareholders  are held by the Corporate  Secretary  office.  Information is
available on Eni&#146;s web site and can be requested to the
segreteriasocietaria.azionisti@eni.it mailbox and the toll-free number 800940924. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
 regarding  period  reports and major  events/transactions  as well as procedures
 concerning  corporate  governance is promptly  released to the public,  also  through
the  internet  site. A specific  section of Eni&#146;s site  contains  all press  releases,
presentations  provided in meetings with the press and financial  analysts,  notices to
 shareholders  and bond holders and information concerning shareholders&#146; and bond holders&#146; meetings,
 including proceeds thereof.  Documents available to the public free of charge are mailed
on request. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is aware that  financial  information  plays a crucial  role in the  functioning  of
capital  markets and in the  creation  and maintenance of satisfying  relationships
 between the company and its increasingly  wide area of  stakeholders.  Eni is also aware
that investors&#146;  trust in listed  companies is one of the essential  elements for the
functioning of global economy.  Investors must be able to rely on the absolute moral
 integrity of persons  responsible of key positions in companies and on their respect of
corporate  codes of conduct, procedures and rules. Eni&#146;s commitment to provide investors
and markets with truthful,  complete,  transparent,  timely and selective financial
 information is confirmed by its Code of Conduct,  that identifies the fundamental values
for the deployment of its activities in the  completeness and transparency of financial
 information,  the formal and substantial  legitimacy of behaviour of its employees at
any  organizational  level and the clarity and truthfulness of its accounting,  in
accordance with laws and regulations in force. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
December 18, 2002,  Eni&#146;s Board of Directors  approved a &#147;Procedure for the  disclosure
of information to the market  concerning Group activities&#148;  published on Eni&#146;s internet
site. The procedure  acknowledges  Consob guidelines and the &#147;Guidelines for information
to the market&#148; issued in June 2002 by the Ref Forum on company  information,  defines the
 requirements for disclosure to the public of price sensitive  events  (materiality,
 clarity,  homogeneity,  information  symmetry,  consistency and timeliness) and the
information flows for  acquiring  data from Group  companies  and providing  adequate and
timely  information  to the Board and the market on price sensitive events. It also
contains sanctions applied in case of violation of its rules. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
Code of Conduct defines confidentiality duties upheld by Group employees relating to the
treatment of sensitive information. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Internal
dealing</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
compliance  with the provisions  contained in the Rules of the markets  organised and
managed by Borsa Italiana SpA (the Italian Stock  Exchange)  and in the text  modified
 by Consob  with  Resolution  13655 of July 9, 2002,  on  December  18, 2002 Eni&#146;s Board
of Directors has approved the Code of Conduct for Internal Dealing  (published on Eni&#146;s
internet site) concerning  transactions  involving financial  instruments  issued by Eni
SpA and its  listed  subsidiaries.  This  Code,  in force from  January  1,  2003,
 contains  the provisions that govern public disclosure  obligations and limitations
regarding  transactions involving financial instruments issued by Eni and by its listed
subsidiaries  executed on their own behalf by relevant persons.  Relevant persons have
been identified to be: (i) Board members and auditors of Eni, the Magistrate of the Court
of Accounts delegate  inspector;  (ii) the managers  directly  reporting to the Chairman
and the Managing Director of Eni and the managers directly reporting to the
aforementioned first line of managers. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According
 to the Code,  the market has to be informed at the end of each  calendar  quarter  about
the  operations  carried out by relevant  persons if their  amount in each  calendar
 quarter  exceeds  euro 35,000  (the limit set by the Rules of the  Italian  Stock
Exchange is euro 50,000) while the market has to be informed  without delay of
 transactions  if their amount  exceeds  175,000 in each six-month calendar period (the
limit set by the Rules of the Italian Stock Exchange is euro 250,000). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
stock options  exercise in connection  with stock option plans and the sale of shares
 acquired in connection with stock option and stock grant plans are to be taken into
account with reference to the above mentioned limits. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Code on Internal Dealing prevents  relevant persons from carrying out transactions on the
financial  instruments  issued by Eni SpA and its listed  subsidiaries  in the fifteen
 working days  preceding the meetings of the Board of Directors of Eni SpA convened to
review the financial  statements and the  preliminary  results as well as, if not
announced in the previous  cases,  the meeting of the Board  resolving on the dividend
 proposal to the  Shareholders&#146;  Meeting.  This  prohibition  does not apply to the
option exercise in connection with stock option and stock grant plans, provided that
shares are not sold in said periods. </FONT></P>

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<a name="a43"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Employees</B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
December 31, 2003,  Eni&#146;s employees were 76,521 with a decrease of 4,134 employees (down
5.1% over 2002), of which 1,447 persons in Italy  (down  3.3%)  and 2,687  persons
 outside  Italy  (down  7.3%).  Employees  hired in Italy  were  42,235  (55.2% of all
Group employees),  of these 39,863 were working in Italy,  2,178  outside Italy and 194
on board of vessels.  As compared to 2002,  the 1,447 unit decline in employees  was due
to changes in  consolidation  (105) and to the balance of persons  leaving  their job and
new hiring (1,342). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Employees
 hired and working  outside Italy at December 31, 2003 were 34,286 (44.8% of all Group
 employees),  with a 2,687 persons decrease  mainly due to the negative  balance (down
2,952  persons with  fixed-term  contracts)  of persons  leaving the job (Saipem in
Kazakhstan) and new hiring (Snamprogetti), offset only in part by the purchase of Mol-Gaz
(265 employees). </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
process of  efficiency  improvement  and search for new skills and  know-how  continued
 in 2003 with a total of 3,397  persons dismissed,  of these 2,622 had an open-end
contract and 775 a fixed-term  contract,  and 2,055 persons hired, of which 772 persons
with a  fixed-term  contract  and 1,283 with  open-end  contracts,  which  confirms  Eni&#146;s
 commitment  to a stable  workforce.  Most of new employees,  that represented 2.7% of
total employees,  had university  qualifications  (678 persons of which 405 are
engineers) and 562 persons had a high school degree, thus improving the qualitative mix
of production units. </FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="70%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Employees at year end</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(units)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,533&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,715&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,718&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,286&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,317&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,982&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,172&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,757&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,277&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,022&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,691&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,050&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,632&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29,091&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26,457&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,303&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,084&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,044&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">70,948&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80,655&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76,521&nbsp; </FONT></TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
</TABLE>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth Eni&#146;s employees at December 31, 2002 in Italy and outside Italy: </FONT></P>

<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="30%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD></TD>
     <TD colspan=3 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(units)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,495&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,617&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,555&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,038&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,098&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,163&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,533&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,715&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,718&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,704&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,852&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,302&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,582&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,465&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,680&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,286&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,317&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12982&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,638&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,332&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,882&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,534&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,425&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,395&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,172&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,757&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,277&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,952&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,172&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,585&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,070&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,519&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,465&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,022&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,691&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,050&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,279&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,255&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,423&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,881&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22,770&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,910&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,160&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25,025&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,333&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Engineering </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,055&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,433&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.544&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">417&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">633&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,580&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,472&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,066&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,124&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,255&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,021&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,944&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,303&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,084&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,007&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44,378&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43,682&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42,235&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Outside Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26,570&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36,973&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34,286&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">70,948&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80,655&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76,251&nbsp; </FONT></TD></TR>
<TR>
     <TD></TD>
     <TD></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">of which senior managers </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,438&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,537&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,733&nbsp; </FONT></TD></TR>
</TABLE>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Share Ownership</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
April 30, 2004, the total number of shares owned by the  directors,  statutory  auditors
and executive  officers of Eni SpA as a group was 292,024 equal to  approximately  0.007%
of Eni&#146;s share  capital  outstanding  at December 31, 2004.  Eni issues only ordinary
shares,  each bearing one-vote right;  therefore  shares held by Eni SpA directors
 statutory  auditors and executive  officers have no different voting rights. </FONT></P>

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<P STYLE='page-break-before:always'>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 7.    MAJOR
SHAREHOLDERS AND RELATED PARTY TRANSACTIONS</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Major Shareholders</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of March 31,  2004,  the  Ministry of Economy and Finance,  the Cassa  Depositi e
Prestiti  SpA and Gruppo  Intesa were the only persons  known by Eni to own more than 2%
of any class of Eni SpA&#146;s voting  securities.  On December 12, 2003,  the Ministry of
Economy and Finance  transferred the title to 400,288,338 shares of Eni to the Cassa
Depositi e Prestiti SpA, a State  wholly-owned  entity. At such date, the total amount of
Eni SpA&#146;s voting securities owned by these shareholders was: </FONT></P>





<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH="50%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Title of Class</B> </FONT> </TD>
     <TD WIDTH="25%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number<BR>of Shares<BR>Owned&nbsp;</B> </FONT> </TD>
     <TD WIDTH="25%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Percent of<BR>Class&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ministry of Economy and Finance </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">813,443,277&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20.32% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cassa Depositi e Prestiti </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">400,288,338&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.00% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">231,297,836&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.78% </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gruppo Intesa </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86,548,464&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.16% </FONT></TD></TR>
</TABLE>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Ministry of Economy and Finance, in agreement with the Ministry of Productive
 Activities,  retains certain special powers over Eni. See &#147;Item 10. Additional Information&#151; Memorandum
and Articles of Association&#151; Limitations on Voting and  Shareholdings&#151;Special  Powers of
the State&#148;.  Following the  continuation of its share buy-back  program,  as of May 27,
2004 Eni held  232,365,688  treasury shares, corresponding  to 5.80% of Eni share
capital.  For a discussion of Eni share bay-back  program see &#147;Item 10 &#150; Additional
 Information &#150;Purchase by Eni SpA of its own shares&#148;. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Related Party
Transactions</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the ordinary course of its business,  Eni enters into transactions  concerning the
exchange of goods,  provision of services and financing with non  consolidated
 subsidiaries  and affiliates as well other companies  owned or controlled by the Italian
 Government. All such transactions are conducted on an arm&#146;s length basis and in the
interest of Eni companies. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts
and types of trade and financial transactions with related parties are described in Note
27 to the Financial Statements. </FONT></P>

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<P STYLE='page-break-before:always'>

<a name="a48"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 8.
   FINANCIAL INFORMATION</B> </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Consolidated
Statements and Other Financial Information</B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
Item 18&#151;Financial Statements. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Disclosure
of Legal Proceedings</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a  description  of legal  proceedings  in which Eni is involved  and which may affect  Eni&#146;s
 financial  position or results of operations see Note 23 to the Financial Statements. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
dividend policy in future periods, and the amount of future dividends, will depend upon
a number of factors including, but not limited to, Eni&#146;s capital expenditure and
development plans, level of profitability and leverage<SUP>1 </SUP> and
the &#147;Risk Factors&#148; set out in Item 3. Eni SpA&#146;s net income and, therefore, the amounts
available for payment of dividends therefrom will also depend on the level of dividends
received from Eni&#146;s subsidiaries. However, consistent with such factors, the Board
of Directors expects to recommend to future meetings of shareholders to maintain
the dividend level set in year 2001 (euro 0.75 per share) in the next four-year plan.
In year 2001 Eni consolidated net income reached its highest level in Eni history
due also to extraordinary gains on disposals. In 2003, the euro 0.75 dividend per share
proposed by Eni&#146;s Board of Directors for fiscal year 2003 maintained the same level of
the dividend for fiscal year 2001; the ratio of dividends to consolidated net income
(pay-out) was 51%. This dividend proposal was approved by the general shareholders&#146; meeting
on May 28, 2004. </FONT> </P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Significant Changes</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See
&#147;Item  5&#151;Recent  Developments&#148;  for a discussion of Eni&#146;s results of operations in the
first quarter of 2004 and other material developments that occurred after December 31, 2003. </FONT></P>


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<P STYLE='page-break-before:always'>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 9.    THE
OFFER AND THE LISTING</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Offer and Listing
Details</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
ordinary shares of Eni SpA, nominal value euro 1.00 each (the &#147;Shares&#148;), are traded
on the Blue Chip segment of the <I>Mercato Telematico Azionario or MTA </I>(&#147;Telematico&#148;), the
Italian screen-based dealer market, which is the principal trading market for shares in
Italy. The Blue Chips segment of Telematico includes shares of the companies whose market
capitalization amounts to more than euro 800 million. American Depository Shares (&#147;ADSs&#148;),
each representing five Shares, are listed on the New York Stock Exchange. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
table below sets forth the reported  high and low reference  prices of Shares on
 Telematico  and of ADSs on the New York Stock Exchange,  respectively.  See &#147;Item 3&#151;Key
Information&#151;Exchange  Rates&#148; regarding applicable exchange rates during the periods
indicated below. </FONT></P>







<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Telematico&nbsp;</B> </FONT> </TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>New York<BR>Stock Exchange&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD COLSPAN="2"><hr size="1"></TD>
     <TD COLSPAN="2"><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>High&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Low&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>High&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Low&nbsp;</B> </FONT> </TD></TR>
<TR>
     <TD> </TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD>
     <TD><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(euro per Share)</B> </FONT> </TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(US$ per ADS)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1999 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.608&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.184&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69.000&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52.375&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.496&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9.536&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.875&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46.562&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.598&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.564&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69.700&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52.500&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.145&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.938&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82.110&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.900&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.746&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.881&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94.980&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66.150&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">First quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.856&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.536&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74.150&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60.900&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Second quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.145&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.428&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80.000&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71.550&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Third quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.775&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.938&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82.110&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64.060&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fourth quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.289&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.256&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">78.700&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65.550&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">First quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.746&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11.881&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82.080&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66.150&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Second quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.284&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.490&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84.850&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68.100&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Third quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.104&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.819&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">78.860&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">73.130&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fourth Quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.163&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.423&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94.980&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">78.540&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.163&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.240&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94.980&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86.860&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">First quarter </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.640&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.723&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">101.340&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92.350&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">January 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.466&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.723&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">98.550&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92.350&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">February 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.856&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.870&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">98.980&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">93.520&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">March 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.640&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.762&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">101.340&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96.000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">April 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.378&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.418&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104.710&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.730&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">May 2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.385&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.320&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106.150&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">97.310&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">June 2004 (through June 14, 2004) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17.270&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.760&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">105.510&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">102.510&nbsp; </FONT></TD></TR>
</TABLE>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source:
Reuters </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Morgan
 Guaranty  Trust Company of New York (the  &#147;Depositary&#148;)  functions as Eni&#146;s  depositary
 bank issuing  American  Depositary Receipts  (&#147;ADRs&#148;)  pursuant to the Deposit
 Agreement among Eni, the depositary and the beneficial  owners  (&#147;Beneficial  Owners&#148;)
and registered holders form time to time of ADRs issued thereunder. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
June 14, 2004 there were 6,265,167 ADRs  outstanding, representing 31,310,835 shares, or 0.008%
of all Eni's shares outstanding, held by 43 holders of record
 (including The Depository  Trust Company) in the United States of America,  40 of which
are U.S. residents.  Since certain of such ADRs are held by nominees,  the number of
holders may not be representative of the number of Beneficial Owners in the United States
or elsewhere </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Shares are included in the MIB 30, the index of the 30 largest companies by
capitalization  and initially listed on Telematico. The MIB 30 is the principal
 indicator  used to track the  performance  of the Italian  stock  market,  and is the
basis for the FIB 30 index of future contracts,  as well as the MIBO 30 option contracts
traded in the Italian  Derivatives Market (&#147;IDEM&#148;).  The Shares are the largest component
of the MIB 30, with a weighting of approximately  17.3%, as established by Borsa Italiana
SpA (&#147;Borsa  Italiana&#148;) after its review of the  composition  of the MIB 30 on April 19,
 2004.  In  addition,  options on the Shares are traded on IDEM.  IDEM facilitates the
trading of call and put options on shares issued by companies that meet certain required
 capitalization  and liquidity thresholds. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Since
 January 14, 2002 the rule on the minimum lot of shares for  transactions  on the
 Telematico  has been  eliminated.  Outside Telematico,  block  trading is permitted  for
orders that meet certain  minimum  size  requirements  and must be notified to Consob and
Borsa Italiana.  Starting from May 15, 2000 shares have been also trading on a special
market,  named After Hours trading market or TAH (&#147;After Hours&#148;), after the closure of
the day time of Telematico under special rules. </FONT></P>

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<a name="a53"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Markets</B> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telematico
is organized and administered by Borsa Italiana subject to the supervision and control of
the <I>Commissione Nazionale per le Societ&#224; e la Borsa </I>(the National Commission for
Companies and the Stock Exchange or &#147;Consob&#148;), the public authority charged, inter
alia, with regulating investment companies, securities markets and public offerings of
securities in Italy to ensure the transparency and regularity of the dealings and
protect investors. Borsa Italiana is a joint stock company (<I>Societ&#224; per Azioni</I>)
that was established to manage the Italian regulated financial markets (including
Telematico) as part of the implementation in Italy of the EU Investment Services
Directive, Borsa Italiana and has issued rules governing the organization and the
administration of the markets it regulates, which are Telematico, Nuovo Mercato (high
growth companies), After Hours, Mercato Expandi (small companies), IDEM (index and
stock derivatives market), MTF (ETF and Funds), MOT and Euro MOT (bond markets), SeDeX
(covered warrants and certificates) as well as the admission to listing on and trading on
these markets. Since March 28, 2000, a three-day rolling cash settlement has been
applied to all trades of equity security in Italy, instead of the preceding five-day
settlement. </FONT> </P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the opening price of a security  (established  each trading day prior to the
 commencement  of trading  based on bids  received) differs by more than 10% (or such
other amount  established by Borsa  Italiana)  from the opening price,  trading in that
security will not be permitted until Borsa Italiana  authorizes the trading.  If in the
course of a trading day the price of a security fluctuates by more than 5% from the last
 reported  sale price (or 10% from the previous  day&#146;s  reference  price),  trading in
that security will be automatically  suspended for a certain period of time. In the event
of such a suspension,  effect is not given to trades agreed but not confirmed before the
suspension. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective
July 1, 1998, the Italian  financial  markets are primarily  regulated by Legislative
 Decree No. 58 of February 24, 1998 (&#147;Decree No. 58&#148;), which  consolidated the previous
 regulation  primarily by restating the provisions of Legislative Decree No. 415 of July
23, 1996. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decree
No. 58 provides that trading of equity securities, as well as any other investment
services, may now be carried out on behalf of the public by <I>societ&#224; di
intermediazione mobiliare </I>(securities dealing firms or &#147;SIMs&#148;), which are
authorized intermediaries, authorized banks and certain types of finance companies. In
addition, banks and investment firms organized in a member nation of the EU are
permitted to operate in Italy provided that the intent of the bank or investment
firm to operate in Italy is communicated to Consob and the Bank of Italy by the
competent authority of the member state. Pursuant to Decree No. 58 the Bank of Italy,
in agreement with Consob, is responsible for regulating clearance and settlement.
Non-EU banks and non-EU investment firms may operate in Italy subject to the specific
authorization of Consob and the Bank of Italy. </FONT> </P>




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<a name="a54"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 10. ADDITIONAL
INFORMATION </FONT></H1>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Memorandum and Articles
of Association </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
is incorporated under the name &#147;Eni SpA&#148; resulting from the transformation of
Ente Nazionale Idrocarburi, a public law agency, established by Law 136 of February 10,
1953. The company objects are the direct and/or indirect management, by way of
shareholdings in companies, agencies or businesses, of activities in the field of
hydrocarbons and natural vapours, such as exploration and development of hydrocarbon
fields, construction and operation of pipelines for transporting the same, processing,
transformation, storage, utilisation and trade of hydrocarbons and natural vapours, all in
compliance with concessions required by law. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
company also has the object of direct and/or indirect management, by way of shareholdings
in companies, agencies or businesses, of activities in the fields of chemicals, nuclear
fuels, geothermy and renewable energy sources, in the sector of engineering and
construction of industrial plants, in the mining sector, in the metallurgy sector, in the
textile machinery sector, in the water sector, including derivation, drinking water,
purification, distribution and reuse of waters; in the sector of environmental protection
and treatment and disposal of waste, as well as in every other business activity that is
instrumental, supplemental or complementary with the aforementioned activities. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
company also has the object of managing the technical and financial co-ordination of
subsidiaries and affiliated companies as well as providing financial assistance on their
behalf. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
company may perform any operations necessary or useful for the achievement of the company
objects; by way of example, it may initiate operations involving real estate, moveable
goods, trade and commerce, industry, finance and banking asset and liability operations,
as well as any action that is in any way connected with the company objects with the
exception of public fund raising and the performance of investment services as regulated
by Decree No. 58 of February 24, 1998. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
company may take shareholdings and interests in other companies or businesses with objects
similar, comparable or complementary to its own or those of companies in which it has
holdings, either in Italy or abroad, and it may provide real and or personal bonds for its
own and others&#146; obligations, especially guarantees. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors is invested with the fullest powers for ordinary and extraordinary
management of the company and, in particular, the Board has the power to perform all acts
it deems advisable for the implementation and achievement of the company objects, except
for the acts that the law or Eni&#146;s by-laws reserve to the shareholders&#146; meeting. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a complete description of the powers of the Board, the Managing Director and the Chairman,
appointments, role of the Board and rules and procedures of the meetings of the Board see
&#147;Item 6.&#151;Board Practices&#148;. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors and the Managing Director report timely, at least every three months
and however in the Board of Directors meetings, to the Board of Statutory Auditors on the
activities and on the most relevant operations regarding the operational, economic and
financial management of the company and its subsidiaries: in particular the Board of
Directors and the Managing Director report to the Board of Statutory Auditors on
operations entailing potential conflicts of interest. Article 2391 of the Italian Civil
Code applies in the case of interests of the Directors. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 30, 2002, Eni&#146;s ordinary Shareholders&#146; Meeting resolved to delegate
authority to the Board of Directors, pursuant to Article 2420-ter of the Civil Code, to
issue bonds, included bonds convertible into shares issued by Eni SpA controlled
subsidiaries and/or warrant bonds to purchase or subscribe shares of Eni SpA controlled
subsidiaries, up to the amount equivalent to euro 4 billion for a five-year period
commencing on May 30, 2002, in one or more times and in one or more tranches. The Board of
Directors is empowered to adopt any act, including but not limited to the fixing of yield,
duration and terms of the issues. . The Extraordinary Shareholders&#146; Meeting held on
May 28, 2004, cancelled this delegation of authority, pursuant to the new version of the
Italian Civil Code in force as of January 1, 2004, that confers authority to issue bonds
directly to the Board. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Chairman and the members of the Board are remunerated in an amount established by the
ordinary Shareholders&#146; Meeting. Said resolution, once taken, will remain valid for
subsequent business years until the Shareholders&#146; Meeting decides otherwise. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no provisions as to retirement based on age-limit requirements, or requirement of
share ownership for a director&#146;s qualification in Eni&#146;s by-laws. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limitations
on Voting and Shareholdings</I></B> </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no limitations imposed by Italian law or by the by-laws of Eni SpA on the rights of
non-residents of Italy or foreign persons to hold or vote the shares other than the
limitations described below (which are equally applicable to residents and non-residents
of Italy). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
by-laws provide that no person, in any capacity, may own shares amounting to more than 3%
of Eni SpA&#146;s voting share capital. Such maximum limit is calculated taking into
account the aggregate shareholding of a controlling entity, whether an individual or a
legal entity (each a &#147;person&#148;); its directly or indirectly controlled entities,
as well as entities controlled by the same controlling entity; affiliated entities, as
well as relatives within the second degree by blood or marriage (except for a legally
separated spouse). Affiliation exists as set forth in applicable Italian legislation, as
well as between entities that, directly or indirectly, through controlled entities (other
than those managing investment funds) are bound, even with third parties, by agreements
relating to the exercise of voting rights or the transfer of shares or interests in
third-party companies or other agreements relating to third-party companies as specified
by applicable Italian legislation if such agreements relate to at least 10% of the voting
share capital of a listed company or 20% of the voting share capital of a non-listed
company. For purposes of calculating the 3% limit, shares held through a fiduciary nominee
or intermediary are taken into account. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
voting rights attributable to shares held or controlled in excess of such 3% limit cannot
be exercised, and the voting rights of each entity to whom such limit on shareholding
applies are reduced proportionately, unless otherwise jointly disposed of in advance by
the parties involved. In the event that shares held or controlled in excess of the maximum
limit are voted, any shareholders&#146; resolution adopted pursuant to such a vote may be
challenged if the majority required to approve such resolution would not have been reached
without the vote of the Shares exceeding such maximum limit. Shares not entitled to be
voted are nevertheless counted for the purpose of determining the quorum at a
shareholders&#146; meeting. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the provisions of Law No. 602 of November 27, 1996, the 3% limit does not apply to
shareholdings in Eni SpA held by the Ministry of Economy and Finance; state-owned entities
controlled by other entities or by the State. The 3% limit does not apply, in the event
that such limit is exceeded as a result of the acquisitions of shares pursuant to a
mandatory tender offer (<I>offerta pubblica di acquisto totalitaria</I>) or a preventative
tender offer (<I>offerta pubblica di acquisto preventiva</I>), each as provided for by
Decree No. 58, regardless of whether a majority of the voting rights is acquired thereby.
The approval of the Ministers as described below in &#147;&#151;Special Powers of the
State&#148; is however requested for Shares acquired pursuant to tender offers. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
other limitations that may affect voting rights, see &#147;&#151;Reporting Requirements
and Restrictions on Acquisitions of Shares&#148;. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Special
Powers of the State</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Italian laws the State, acting through the Minister of Economy and Finance, in agreement
with the Minister of Productive Activities (together with the Minister of Economy and
Finance, the &#147;Ministers&#148;), holds certain special powers in connection with any
transfer of a controlling interest in certain State-owned companies operating in public
service sectors, including Eni SpA. The law places no limit on the duration of such
special powers. Such powers are to be exercised in accordance with EU principles. Specific
guidelines have been introduced by the Decree of the President of the Council of Ministers
(DPCM), May 4, 1999, which sets forth the conditions in which the Ministers can exercise
their special veto over a company&#146;s strategic decisions. According to article 66 of
Law 488, dated December 23, 1999, such guidelines have been confirmed by the DPCM dated
February 11, 2000. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
by-laws in article 6.2, which applies article 2, line 1 of Law Decree No. 332 of May 31,
1994, modified and converted into Law No. 474 of July 30, 1994, acknowledge that the
Ministers possess the following special powers: </FONT></P>


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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Approval of
Material Acquisitions of Shares. </I>The Ministers have the authority to approve or
disapprove the acquisition of "material interests" in the share capital of Eni SpA,
defined as interests representing at least 3% of the share capital having the right
to vote at an ordinary shareholders' meeting. See "--General". Approval
or disapproval must be given within 60 days from the date of the notice to be filed by
the Board of Directors at the time a request is made for registration in the register of
shareholders by such a purchaser of a material interest. Until the
approval is granted or the 60-day period has expired without the approval having been
granted, the purchaser may not exercise the voting rights or any rights other than
economic rights pertaining to the Shares constituting the material
interest. In the event the approval is denied by the Ministers or the 60-day period has
expired without the approval having been granted, the purchaser must sell the Shares
constituting the material interest within one year. In the event of
failure to comply with such requirement, the Ministry of Economy and Finance shall
petition the courts to order the forced sale of the shares constituting such a material
interest. With reference to the ADR program established in respect of the
shares, the Ministers approved the acquisition of 3% or more of the
voting share capital of Eni SpA by the Depositary, considering the Depositary the record
holder and not the Beneficial Owner of Shares, represented by ADSs and evidenced by
ADRs. Each of the holders and Beneficial Owners of ADSs are subject to the
3% limit. The Minister of Economy exercised these powers only once in order to allow a
merchant bank to own shares of Eni SpA to be resold on the market following an IPO. </FONT> </DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Approval of
Material Shareholders' Agreements. </I>The Ministers have the authority to approve or
disapprove shareholders' agreements or other arrangements involving 3% or more of the
share capital of Eni SpA having the right to vote at an ordinary shareholders'
meeting. Such approval or disapproval must be given within 60 days from
the date of the notice to be provided to the Minister of Economy and Finance by Consob
following to the notifications of shareholders' agreements or other arrangements to
Consob. Until such approval is granted or the 60-day period has expired
without the approval having been granted, the shareholders participating in such
agreement or other arrangement may not exercise the voting rights or any rights other
than economic rights pertaining to the Shares subject to such agreement or
other arrangement. In the event the approval is denied by the Ministers or the 60-day
period has expired without the approval having been granted, the agreement is
ineffective. In accordance with Italian laws, if the conduct of
shareholders during a shareholders' meeting supports an inference that there exists
among such shareholders a shareholders' agreement or other arrangement to be notified to
Consob and such agreement or other arrangement has not been notified, then
any resolutions adopted at such meeting with the decisive vote of such
shareholders may be challenged and voided. </FONT> </DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Board of
Directors and Board of Statutory Auditors' Members. </I>The Ministers have the power to
appoint one Director to the Board of Directors and the Chairman of the Board of Statutory
Auditors. At Eni's Ordinary Shareholders' Meeting held on May 30, 2002 which,
among other things, appointed the new Board of Directors, the Ministers
decided not to exercise their power to appoint a member of the Board. Therefore the
number of members of the Board was set at eight versus the preceding nine-member Board. </FONT> </DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Veto Power
over Major Changes. </I>The Ministers have veto power with respect to shareholders'
resolutions to dissolve Eni SpA, to cause a transfer, merger or demerger of Eni SpA, to
transfer the registered office of Eni SpA outside Italy, to change the corporate
purposes or to amend or modify any of the special powers described in this
section. </FONT> </DIV></UL>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Article
4 of Law No. 350/2003 (2004 budget law), lines 227 to 231, introduced changes to Law No.
474 of July 30, 1994 concerning the exercise of special powers by the Government in
&#147;companies directly or indirectly controlled by the State operating in the fields of
defence, transports, telecommunications, energy sources and other public services&#148;
(the so called golden share). Line 231 states: &#147;The by-laws of companies conferring
special powers to the State shall be amended according to the provisions of lines 227 to
230&quot;. This amendment is subject to the issue of specific decrees by the President of
the Council of Ministers concerning the identification of companies: (i) &#147;in whose
by-laws before any deed is approved that determines the loss of control, a new clause
needs to be introduced with decision of an extraordinary Shareholders&#146; Meeting
attributing to the Minister of Economy and Finance the title to exercise one or more
special powers in consultation with the Minister for Productive Activities&#148; (line
227); (ii) &#147;from whose by-laws a decision of an extraordinary Shareholders&#146;
Meeting must cancel any clause attributing one or more special powers to the Minister of
Economy and Finance&#148; (line 229). Furthermore, always with decree of the President of
the Council of Ministers to be issued within 90 days from the entry into force of the
budget law, (iii) &#147;the criteria must be identified for exercising special powers,
limiting their use only to the case of prejudice to the interests of the State&#148; (line
230). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
a decision published on May 23, 2000, the European Court of Justice declared that Italy,
in granting the Minister of Economy and Finance &#147;special powers&#148; and introducing
them in the by-laws of some privatized companies, violated the obligations imposed by
Articles 43 (former article 52, right of establishment), 49 (former 59, free provision of
services) and 56 (former 73b, free movement of capitals) of the European Treaty. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with past decisions, the Court analyzed Italian legislation in force at the
expiration of the terms defined in the European Commissions&#146;s informed opinion,
therefore it did not take into account DPCM of May 4, 1999, article 66 of Law No. 488/99
and DPCM of February 11, 2000 which included provisions limiting those &#147;special
powers&#148; of the Minister of Economy and Finance. These are currently being analyzed by
the European Commission. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Minority
Protection Provisions</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Italian laws, the by-laws of companies, such as Eni SpA, that impose a maximum limit on
the number of shares that may be held by any shareholder must provide for the election of
directors and statutory auditors through the <I>voto di lista</I> (voting list) system, to
ensure that minority shareholders of a company are represented on its board of directors
and board of statutory auditors. Accordingly, Eni&#146;s by-laws require that the members
of the Board of Directors and the Board of Statutory Auditors of Eni SpA not directly
appointed by the Ministers (see &#147;&#151;Special Powers of the State&#148;) be elected
on the basis of candidate lists presented either by the Board of Directors or by one or
more shareholders (including the Minister of Economy and Finance) representing in the
aggregate at least 1% of the share capital of Eni SpA having the right to vote at ordinary
shareholders&#146; meetings. Such candidate lists must be deposited at the registered
office of Eni SpA and published in at least three Italian newspapers having general
circulation in Italy (two of which must be business dailies). Publication of the candidate
list presented by the Board of Directors shall occur at least 20 days before the first
call (as defined below) of the Shareholders&#146; Meeting. Such term is reduced to 10 days
in the case of candidate lists proposed by shareholders. Each shareholder may present or
participate in the presentation of only one candidate list and each candidate may appear
on only one list. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Eni&#146;s by-laws, the election of the members of the Board of Directors will proceed as
follows: </FONT></P>

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               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>a) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=1%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=94%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    seven tenths of the members to be elected will be drawn out from the candidate
                    list that receives the majority of votes expressed by the shareholders in the
                    numerical order in which they appear on the list, rounded off in the event of a
                    fractional number to the next lower number; </FONT></P></TD>
                    </TR>
                    </TABLE>
                    <BR>

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                    <TR VALIGN=TOP>
                    <TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>b) </FONT></TD>
                    <TD ALIGN=LEFT WIDTH=1%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
                    <TD WIDTH=94%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    the remaining Board members will be drawn out from the other candidate lists; to
                    this purpose the votes obtained by each candidate list will be divided by one or
                    two or three depending on the number of the members to be elected. The quotients
                    thus obtained will be assigned progressively to candidates of each said list in
                    the numerical order in which they appear in each list. Quotients thus assigned
                    to candidates of said lists will be set in one decreasing numerical order. Those
                    who obtain the highest quotients will be elected. </FONT></P></TD>
                    </TR>
                    </TABLE>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
election of members of the Board of Statutory Auditors is governed by the same rules,
except that the Board of Directors may not present a candidate list to the Board of
Statutory Auditors, and that, pursuant to Decree No. 58, Eni&#146;s by-laws provides that,
in the event of a Board of Statutory Auditors formed by more than three Auditors, at least
two of them be appointed by minority shareholders. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Extraordinary Shareholders&#146; Meeting held on May 28, 2004 approved an amendment to
article 17.3 of the by-laws according to which companies that are controlling entities or
under common control, as defined by Article 2359, first Paragraph, of the Civil Code, or
compnaies controlled by the same entity of the company presenting a list shall not present
nor take part in the presentation of another candidate list. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Several
provisions of Italian legislation are intended to increase the protection of minority
shareholders. In particular, (i) shareholders&#146; meetings must be called also on
request of holders of at least 10% of the outstanding Shares (the Board of Directors,
however, may refuse to call the meeting when conflicting with the company&#146;s
interests) (art. 2367 c.c.); (ii) at an extraordinary shareholders&#146; meeting
resolutions are passed with the approval of at least twothirds of the shares represented
at the meeting, whether on first, second or third call (Art. 2368-2369 c.c.) at least the
majority, one third and one fifth of the share capital; (iii) shareholders&#146; actions
against the Board of Directors, the Statutory Auditors. Official Receivers and the
Managing Director may be promoted by shareholders holding at least 5% of the outstanding
shares (Art. 2393 <I>bis</I>); (iv) the actions that a single shareholder may sue (art.
2394-<I>bis</I>) and (v) collective shareholders&#146; complaints to the Board of
Statutory Auditors may be promoted by shareholders holding at least 5% of the outstanding
share (art. 2409 c.c.). The company&#146;s by-laws may further lower the thresholds in
(iii) and (v) and increase the voting quorums under (ii). Effective from July 1, 1998,
accounting control functions are under the exclusive competence of company&#146;s
independent auditors, and the company&#146;s Board of Statutory Auditors no longer carries
out such functions. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reporting
Requirements and Restrictions on Acquisitions of Shares</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Consob Regulation, any direct or indirect participation in excess of 2%, 5%, 7.5%, 10% and
subsequent multiples of 5% in the voting shares of a listed company must be notified to
such company and to Consob, within five open market days from the effectiveness of the
transaction triggering such obligation to notify. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
obligation to notify also applies to any direct or indirect participation owned through
ADSs. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
listed companies, whose by-laws impose a maximum limit on the number of shares that may be
held by any shareholder, Consob is entitled to fix different relevant thresholds by
decree. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Further,
the reduction of the foregoing interest below the relevant thresholds must be notified
within the same terms. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shares
held in excess of any such threshold cannot be voted in the event the above notices have
not been provided. Any resolution violation of such limitation can be voided if challenged
in court by shareholders and Consob, if the resolution would have not be adopted without
the consent of the shares in question. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
relevant thresholds noted above shall be calculated including (i) shares registered in the
name of the relevant reporting person whose underlying voting rights are attributed to
third parties, and viceversa; and (ii) shares held through third parties and shares whose
voting rights are attributable to such third parties, excluding shares registered in the
name of, or endorsed to, fiduciaries as well as shares whose voting rights are attributed
to intermediaries for purposes of the management of mutual or individual savings. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Furthermore,
calculation of 5%, 10%, 25%, 50% and 75% thresholds shall also take into account shares
outstanding which the relevant reporting person is entitled to purchase or to sell
directly or through third parties. Shares to be purchased through the exercise of
conversion rights or warrants shall be calculated only in the event the acquisition can
take place within a sixty days period. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the same relevant participation is directly or indirectly held by two or more
entities, then obligation to notify may be satisfied by one of such person, provided that
completeness of information is guaranteed. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
participation exceeding 10% of the voting capital of an unlisted company, including any
foreign company, owned by a listed company must be notified to such non-listed company
within seven days from reaching such threshold. Similarly, the non-listed company must be
notified about any subsequent reduction of such participation below the 10% threshold. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Listed
companies are also required to notify Consob of their participation exceeding 10% of the
voting capital of non-listed companies owned at the end of the first six months and of the
full year. Such notification is due within 30 days from the date of approval of the Annual
Report and the Report on the First Six Months, respectively. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the same relevant participation is directly or indirectly held by two or more
entities, then the obligation to notify may be satisfied by one of such entities, provided
that completeness of information is guaranteed. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
10% threshold shall be calculated including (i) shares registered in the name of the
relevant listed company, even if voting rights are attributable to third parties; (ii)
shares whose voting rights are attributable to the relevant listed company, in the event
such voting rights entitle such party to exercise a dominant or material influence at the
ordinary shareholder&#146;s meeting; and (iii) shares registered in the name of third
parties and shares whose voting rights are attributable to third parties. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition to the rules of article 2359 bis of the Italian civil code, governing the
acquisition of shares of the parent company by a controlled subsidiary, Decree No. 58/98
regulates additional cross-ownership matters as follows. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cross-ownership
between listed and non-listed companies may not exceed 2% of the shares of the listed
company or 10% of the shares of the non-listed company. For calculating these ownership
thresholds, the rules for calculations of interests in listed and non-listed companies
apply. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
company ultimately exceeding the 2% or 10% interest in a listed or unlisted company
respectively may not exercise the voting rights on the shares held in excess of such
thresholds; such shares must be sold within 12 months. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
anyone holds an interest exceeding 2% of the share capital of a listed company, such
listed company or any entity controlling such listed company may not acquire an interest
exceeding 2% of the share capital of a listed company controlled by said holder. If the
foregoing limit is exceeded, the holder who last exceeded the foregoing limit or both the
holders, if it is not possible to ascertain which holder exceeded such limit last, may not
exercise the voting right related to the shares exceeding the foregoing limit. Such limits
are not applicable in case of a tender offer for acquiring at least 60% of the ordinary
shares of a listed company. For a description of the limitation on cross-ownership between
a company and its subsidiaries, see &#147;Purchase by Eni SpA of its Own Shares&#148;. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Decree No. 58, any agreement, in whatever form, intended to regulate the exercise of
voting rights in a listed company or in the companies controlling a listed company,
together with any of its subsequent amendments, renewal or termination, must be (i)
notified to Consob, within five days from its execution; (ii) disclosed to the public
through the publication, in summary form, in one Italian newspaper having general
circulation, within ten days from its execution; and (iii) deposited in the
Companies&#146; Register of the place where such listed company has its registered office
within 15 days from its execution. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
same requirements also apply to agreements, in whatever form, that (a) impose an
obligation of prior consultation for the exercise of voting rights in a listed company and
in its controlling companies; (b) contain undertakings limiting the transferability of
shares and other securities granting rights for the acquisition or subscription of shares;
(c) provide for the acquisition of the shares and securities; and (d) contemplate or cause
the exercise, also in association with other persons, of dominant influence over the
listed company that issued the shares and its controlled entities. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the obligations set out above are not completely satisfied, then the agreement
is ineffective and the voting rights connected to the relevant shares may not be
exercised. In case of violation of such limitation imposed on the voting rights, a
resolution can be challenged if such resolution would have not been approved without the
vote of such shares. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the parties have agreed upon the duration of the agreement, such duration cannot exceed
three years. In absence of agreement, each party to the agreement can withdraw from such
an agreement by giving a six month notice. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with Law No. 287 of October 10, 1990, any acquisition of sole or joint control
over a company that would create or strengthen a dominant position in the domestic market
in a manner that eliminates or significantly reduces competition is prohibited. However,
if the acquiring party and the company to be acquired operate in more than one EU member
state and together exceed certain revenue thresholds, the antitrust approval of the
acquisition falls within the exclusive jurisdiction of the European Commission. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders&#146;
Meetings</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registered
shareholders are entitled to attend and vote at ordinary and extraordinary
shareholders&#146; meetings. Each holder is entitled to cast one vote for each share held.
Votes may be cast personally, by proxy or by mail, in accordance with applicable
regulations. Meetings are called by Eni SpA&#146;s Board of Directors when required or
deemed necessary, or on request of shareholders representing at least 10% of outstanding
shares, who must provide an agenda of the matters to be discussed to the Chairman of the
Board of Directors. Meetings may also be called, by the Board of Statutory Auditors or by
two Auditors, provided that such call has been notified in advance. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ordinary
shareholders&#146; meetings must be convened at least once a year. At these ordinary
meetings, shareholders approve the financial statements, resolve upon dividend
distribution, if any, may appoint Directors, Statutory Auditors and, when necessary, the
External Auditors, determine their remuneration and vote on the liability of Directors and
Statutory Auditors and approve shareholders&#146; meeting regulation. Extraordinary
meetings of shareholders may be called to pass upon proposed amendments to the by-laws,
capital increases, mergers, consolidations, demerger, issuance of debentures, appointment
of liquidators and similar extraordinary actions. The notice of a shareholders&#146;
meeting generally specifies two meeting dates (&#147;calls&#148;) and because Eni SpA is
listed such notice may specify three calls for extraordinary shareholders&#146; meetings. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
attendance quorum required for a valid shareholder action at an ordinary meeting on first
call is 50% or more of the outstanding shares, while on second call there is no attendance
quorum requirement. At a duly called ordinary meeting, in both first and second calls,
resolutions may be approved by a simple majority of the shares represented at the meeting. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
attendance quorum required for a valid shareholder meeting at an extraordinary meeting is
more than 50% of the outstanding shares on first call, while on second call the attendance
quorum is more than 1/3 of the Shares outstanding and on third call the attendance quorum
is more than 1/5 of the shares outstanding. On first, second and third call, resolutions
may be approved by a majority of 2/3 of the Shares represented at the shareholders
meeting. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
financial statements of Eni SpA are submitted for approval to the annual
shareholders&#146; meeting, which must be convened within 180 days after the end of the
financial year. Shareholders are informed of all meetings to be held by publication of a
notice in the <I>Gazzetta Ufficiale</I> and in at least one Italian newspaper of general
circulation at least 30 days before the date fixed for the meeting. Under current
legislation, the reports and proposals of the Board of Directors to the shareholders
meeting for any item on the agenda of the meeting and the financial statements to be
submitted to the shareholders&#146; approval, shall be deposited at the Shareholders
disposal at the Company&#146;s registered office and at Borsa Italiana. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Admission
to the meeting is granted to shareholders who requested the notification of attendance
pursuant to article 34 of Consob Deliberation No. 11768 of December 23, 1998, at least
five days prior to the date of the meeting on first call. The extraordinary
shareholders&#146; meeting, held on May 28 2004, approved the amendment of Article 13 of
the by-laws according to which the term is reduced to two days. For a description of the
procedures to be followed by Beneficial Owners of ADRs to attend shareholders&#146;
meetings and exercise voting rights with respect to underlying Shares, see
&#147;Description of American Depositary Receipts&#151;Voting of Deposited
Securities&#148;. Beneficial Owners of Shares held with Monte Titoli need only to instruct
the relevant banks associated with Monte Titoli which hold their accounts to procure
admission tickets and proxy forms. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Extraordinary Shareholders&#146; Meeting held on May 28, 2004, approved the amendment to
Article 23 of the by-laws according to which the Board of Director is allowed to resolve
(i) the merger and demerger of at least 90% directly owned subsidiaries; (ii) the
establishment and winding up of branches; (iii) the amendment to the by-laws to adequate
its provisions to the current legislation. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Legislative Decree No. 213 dated June 24, 1998, Eni SpA&#146;s shares have been
&#147;dematerialized&#148; (the shares are not longer incorporated in a certificate).
Therefore for the exercise of the rights connected to outstanding Shares not yet
dematerialized, Shareholders must first deliver such shares to a financial intermediary
associated with Monte Titoli. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
may appoint proxies by completing the form attached to the admission ticket. Directors,
Statutory Auditors, auditors and employees of Eni SpA or of controlled companies, and the
External Auditors of Eni SpA, banks and Monte Titoli may not be appointed proxies. Any one
proxy may not represent more than 200 shareholders of Eni SpA. A proxy may be appointed
for a single meeting, including the first, second and third call thereof unless the proxy
is general or given to a company, association, foundation, other entities or institutions
to an employee.. The by-laws of Eni SpA provide for voting by mail. There are no
limitations arising under Italian law or the by-laws of Eni SpA on the right of
non-resident or foreign persons to hold or vote the Shares other than limitations that
apply generally to all shareholders. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rules
relating to proxies are established by Decree No. 58 and the related Consob Regulation No.
11971 dated May 14, 1999. Accordingly whereby (i) proxies may be solicited, collected or
exercised by banks, investment firms and shareholders&#146; associations, (ii) proxies may
be granted only in respect of shareholders&#146; meetings that have been called and (iii)
proxies may be limited to voting on particular proposals. Decree no. 58 also allows
companies to implement vote by mail procedures and establishes new regulations relating
to, among other things, takeovers, cross-shareholdings, shareholders&#146; agreements and
saving shares. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Meetings
of Eni&#146;s shareholders are conducted according to the &#147;Eni SpA&#146;s
Shareholders&#146; Meeting Regulation&#148; as approved by the Ordinary Shareholders&#146;
Meeting of Eni on December 4, 1998 and amended by the Ordinary Shareholders&#146; Meeting
held on May 28, 2004 in order to adeguate the provision to the new rules content in the
Civil Code for the participation to the Shareholders&#146; Meetings. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subscription
Rights</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New
shares may be issued pursuant to a resolution of shareholders at an extraordinary meeting.
Under Italian law, shareholders have a preemptive right to subscribe for new issues of
shares and debentures convertible into shares in proportion to their respective
shareholdings. Subject to certain conditions principally designated to prevent dilution of
the rights of shareholders, this right may be waived or limited by resolution taken by an
extraordinary shareholders&#146; meeting by the affirmative vote of more than 50% of the
shares outstanding. Such percentage applies to all calls of the meeting. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidation
Rights</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Italian law, subject to the satisfaction of the claims of all other creditors,
shareholders are entitled to a distribution of the remaining liquidated assets of Eni SpA
in proportion to the nominal value of their shares. Holders of savings shares and
preferred shares, if foreseen by the by-laws, in the event such shares are issued by Eni
SpA, are entitled to a preferred right to distribution from liquidation up to their
nominal value. Thereafter, if there are surplus assets, ordinary shareholders rank equally
in the distribution of such assets. Shares rank pari passu among ordinary shareholders in
a liquidation. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase
by Eni SpA of its Treasury Shares</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to Italian law, a company may purchase its 1own shares only pursuant to a prior
authorization by a shareholders&#146; meeting, and must pay for such shares only out of
distributable earnings and distributable reserves as reflected in the most recent
financial statements approved by a shareholders&#146; meeting. The nominal value of shares
so purchased, including shares held by subsidiaries, may not exceed 10% of such
company&#146;s share capital. Shares purchased in excess of such 10% limit must be resold
within one year from the date of their purchase. Identical limitations apply to purchases
of shares of a company by its subsidiaries. In order to increase shareholders&#146; value,
Eni&#146;s Ordinary Shareholders&#146; Meeting held on May 28, 2004 authorised the
continuation of the share buy-back program until November 30, 2005 and up to 400 million
ordinary shares, nominal value euro 1 each, for a total amount not exceeding 5.4 billion
euro. The 400 million shares and the 5.4 billion thresholds take into account the number
and amount of Eni shares purchased from the beginning of the buy-back program until May
27, 2004. At that date, Eni owned <I>232.4</I> million shares, equal to approximately
<I>5.80</I>% of Eni&#146;s share capital, for a total amount of euro <I>3,196.5</I>
million (corresponding to an average purchase price of euro 13.75 per share). The shares
are to be purchased on the Telematico at a price no lower than their nominal value and no
higher than 5% over the reference price recorded on the business day preceding each
purchase. </FONT></P>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table summarizes the status of treasury shares held by Eni as of December 31,
2003: </FONT></P>




<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Period</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Numbers <BR>of shares<BR> million</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Average <BR>price<BR> euro</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total price <BR>million euro</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Share capital <BR>%</B> </FONT> </TD></TR>
<TR>
     <TD COLSPAN=1><hr size="1"></TD>
     <TD COLSPAN=1><hr size="1"></TD>
     <TD COLSPAN=1><hr size="1"></TD>
     <TD COLSPAN=1><hr size="1"></TD>
     <TD COLSPAN=1><hr size="1"></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2000 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44.4 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.92 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">574&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.11 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">110.0 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.58 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,494&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.75 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2002 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52.2 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14.74 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">770&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.30 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23.9 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.76 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">329&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.60 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">As of December 31, 2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">230.5 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.74 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,167&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.76 </FONT></TD></TR>
</TABLE>



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<a name="a56"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Material contracts </FONT></H1>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exchange Controls </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no exchange controls in Italy. Residents and non-residents of Italy may effect any
investments, divestments and other transactions that entail a transfer of assets to or
from Italy, subject only to the reporting, record-keeping and disclosure requirements
described below. In particular, residents of Italy may hold foreign currency and foreign
securities of any kind, within and outside Italy, while non-residents may invest in
Italian securities without restriction and may export from Italy cash, instruments of
credit or payment and securities, whether in foreign currency or euro, representing
interest, dividends, other asset distributions and the proceeds of dispositions. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Updated
reporting and record-keeping requirements are contained in recent Italian legislation
which implements an EU directive regarding the free movement of capital. Such legislation
requires that transfers into or out of Italy of cash or securities in excess of euro 10
thousand be reported in writing to the <I>Ufficio Italiano Cambi</I> (the Italian Exchange
Office) by residents or non-residents that effect such transfers directly, or by banks,
securities dealers or <I>Poste Italiane SpA</I> (Italian Mail) that effect such
transactions on their behalf. In addition, banks, securities dealers or Poste Italiane SpA
effecting such transactions on behalf of residents or non-residents of Italy are required
to maintain records of such transactions for five years, which records may be inspected at
any time by Italian tax and judicial authorities. Non-compliance with these reporting and
record- keeping requirements may result in administrative fines or, in the case of false
reporting and in certain cases of incomplete reporting, criminal penalties. The Ufficio
Italiano Cambi will maintain reports for a period of ten years and may use them, directly
or through other government offices, to police money laundering, tax evasion and any other
crime or violation. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxation </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>The
information set forth below is a summary only, and Italian, United States and other tax
laws may change from time to time. Holders of shares and ADSs should consult with their
professional advisors as to the tax consequences of their ownership and disposition of the
shares and ADRs, including, in particular, the effect of tax laws of any other
jurisdiction.</I> </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Italian
Taxation</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a summary of the material Italian tax consequences of the ownership and
disposition of shares or ADRs as at the date hereof and does not purport to be a complete
analysis of all potential tax effects relevant to the ownership or disposition of shares
or ADRs. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
tax</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
received by Italian resident individuals in relation to participations exceeding 2% of the
voting rights or 5% of the share capital (&#147;substantial participations&#148;) are
included in the taxable income subject to personal income tax to the extent of 40% of
their amount. Personal income tax applies at progressive rates ranging from 23% to 45%
plus local surtaxes. Dividends received by Italian resident individuals in relation to
non-substantial participations not related to the conduct of a business are subject to a
substitute tax of 12.5% withheld at the source by the dividend paying agent. This being
the case, the dividend is not to be included in the individual&#146;s tax return. If the
non-substantial participations are related to the conduct of a business, dividends
received are included in the taxable business income to the extent of 40% of their amount. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
received by Italian pension funds are included in the overall result of the pension funds
subject to a 11% substitute tax. Dividends received by Italian collective investment funds
are included in the overall result of the collective investment funds subject to a 12.5%
substitute tax. Dividends received by Italian real estate investment funds are not subject
to tax in the hands of the real estate investment funds. Entities exempt from IRES
(company income tax) are subject to the substitute tax at the rate of 27%. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend
paid to non Italian residents are subject to the same substitute tax levied at source by
the dividend paying agent at the rate of 27%, provided that the participations are not
connected to an Italian permanent establishment. Up to four-ninths of the substitute tax
withheld might be recovered by the non-resident shareholder from the Italian Tax
Authorities upon provision of evidence of full payment of income tax on such dividend in
his/her country of residence in an amount at least equal to the total refund claimed. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
substitute tax may be reduced under the tax treaty in force between Italy and the country
of residence of the Beneficial Owner of the dividend. Italy has executed income tax
treaties with approximately 70 foreign countries, including all EU member states,
Argentina, Australia, Brazil, Canada, Japan, New Zealand, Norway, Switzerland, the United
States and some countries in Africa, the Middle East and the Far East. Generally speaking,
it should be noted that tax treaties are not applicable where the holder is a tax-exempt
entity or, with few exceptions, a partnership or a trust. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order to obtain the treaty benefit (reduced substitute tax rate) at the same time of
payment, the Beneficial Owner must file an application to the dividend paying agent chosen
by the Depositary stating the existence of the conditions for the applicability of the
treaty benefit, together with a certification issued by the foreign Tax Authorities
stating that the shareholder is a resident of that country for treaty purposes. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the tax treaty between the United States and Italy, dividends derived and beneficially
owned by a U.S. resident who holds less than 10% of the Company&#146;s shares are subject
to an Italian withholding or substitute tax at a reduced rate of 15%, provided that the
participations are not effectively connected with a permanent establishment in Italy
through which the U.S. resident carries on a business or a fixed establishment in Italy
through which such U.S. resident performs independent personal services (for further
details please refer to the relevant provisions set forth in the Italy-U.S. Tax Treaty).
In the absence of such conditions, the dividend paying agent will deduct from the gross
amount of the dividend the substitute tax at the statutory rate of 27%. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the certification procedure required by the Italian Tax Authorities, to benefit from
the direct application of the <I>15</I>% substitute tax the U.S. shareholder must provide
the dividend paying agent with a certificate obtained from the U.S. Internal Revenue
Service (the &#147;IRS&#148;) with respect to each dividend payment. The request for that
certificate must include a statement, signed under penalties for perjury, to the effect
that the shareholder is a U.S. resident individual or corporation, and does not maintain a
permanent establishment in Italy, and must set forth other required information. The
normal time for processing requests for certification by the IRS is normally about six to
eight weeks. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Where
the Beneficial Owner has not provided the above mentioned documentation, the dividend
paying agent will deduct from the gross amount of the dividend the substitute tax at the
statutory rate of 27%. The U.S. recipient will then be entitled to claim from the Italian
Tax Authorities the difference (&#147;treaty refund&#148;) between the domestic rate and
the treaty one by filing specific forms (certificate) with the Italian Tax Authorities. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;According
to the Italian tax law as reflected in the Deposit Agreement, the Company is not involved
(i) in withholding amounts due by holders of ADSs to relevant taxing authorities in
connection with any distributions relating to ADSs or (ii) in the procedures through which
certain holders of ADSs may obtain tax rebates, credits, refunds or other similar
benefits. Pursuant to the Deposit Agreement, the custodian and the Depositary have
undertaken to use reasonable efforts to make and maintain arrangements to enable persons
that are considered United States residents for purposes of applicable law to receive any
rebates or tax credits (pursuant to treaty or otherwise) relating to distributions on the
ADSs to which such persons are entitled. in addition, the Depositary has agreed to
establish procedures to enable all holders to take advantage of any rebates or tax credits
(pursuant to treaty of otherwise) relating to distributions on the ADSs to which such
holders are entitled and to provide, at least annually, a written notice, in a form
previously agreed to by the Company, to the holders of ADSs of any necessary actions to be
undertaken by such Holders. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer
tax</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
general terms, no Italian transfer tax is payable in the following cases: </FONT></P>


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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>contracts
executed on regulated financial markets; </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>contracts
concerning shares of non-listed companies, executed between non-resident persons and
banks or other authorised intermediaries (provided that certain conditions are met); </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>contracts
concerning listed shares even if not executed on regulated financial markets, between
non-resident persons and banks or other authorized intermediaries or investment funds. </FONT></DIV></UL>




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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
mentioned exemption from transfer tax does not entail the application of stamp duty or
registration tax. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
provide a more complete picture, transfer tax is currently payable at the following rates: </FONT></P>


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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Euro 0.072
for euro 51.65 (or fraction thereof) of the price at which the Shares or ADRs are
transferred, when the transfer occurs directly between the contracting parties or through
intermediaries other than those listed below. </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Euro 0.025
for euro 51.65 (or fraction thereof) of the price at which the Shares or ADRs are
transferred, when the transfer occurs between private individuals and a bank or between
private individuals through an intermediary,  such as an exchange agent, a bank,
               a stock broker, or a SIM. </FONT></DIV></UL>

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<UL><LI>
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Euro 0.0061
for euro 51.65 (or fraction thereof) of the price at which the Shares or ADRs are
transferred, when the transfer occurs between banks, exchange agents or SIMs. </FONT></DIV></UL>





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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital
Gains Tax</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
paragraph applies with respect to capital gains out of the scope of a business activity
carried out in Italy. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains
realized by Italian resident individuals upon the sale of substantial participations are
included in the taxable base subject to personal income tax to the extent of 40% of their
amount, while gains realized upon the sale of non substantial participations are subject
to a substitute tax at a 12.5% rate. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
gains deriving from the sale of non substantial participations, two different systems may
be applied at the option of the shareholder as an alternative to the filing of the tax
return: </FONT></P>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
so-called &#147;administered savings&#148; tax regime (<I>risparmio amministrato</I>),
based on which intermediaries acting as shares depositaries shall apply a substitute tax
(12.5%) on each gain, on a cash basis. If the sale of shares generated a loss, said loss
may be carried forward up to the fourth following year; and </FONT></p>
</TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp; </FONT></TD>
<TD WIDTH=95%><p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
so-called &#147;portfolio management&#148; tax regime (<I>risparmio gestito</I>) which is
applicable when the shares form part of a portfolio managed by an Italian asset management
company. The accrued net profit of the portfolio is subject to a 12.5% substitute tax to
be applied by the portfolio. </FONT></p>
</TD>
</TR>
</TABLE>


<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gains
realized by non residents from non substantial participations in listed companies are
deemed not to be realized in Italy and consequently are not subject to the capital gains
tax. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the contrary, gains realized by non-residents from substantial participations even in
listed companies are deemed to be realized in Italy and consequently they are subject to
the capital gains tax. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;However
double taxation treaties may eliminate the capital gains tax. Under the income tax
convention between the United States and Italy, a U.S. resident will not be subject to the
capital gains tax unless the shares or ADRs form part of the business property of a
permanent establishment of the holder in Italy or pertain to a fixed establishment
available to a shareholder in Italy for the purposes of performing independent personal
services. U.S. residents who sell shares may be required to produce appropriate
documentation establishing that the above-mentioned conditions of non-taxability pursuant
to the convention have been satisfied. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inheritance
and Gift Tax.</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
inheritance tax applies in Italy to the transfer of shares or ADRs by reason of death.
Transfer of shares or ADRs, even if held outside Italy, by reason of donation are subject
to the ordinary Italian transfer tax on the value of the gift exceeding 180.759,91 euro,
only if the donee is not the spouse, a direct descendant or a relative up to the fourth
degree of the donor. However, tax applies in the fixed amount of 129.11 euro. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;An
anti avoidance rule applies to gift of assets (such as shares) which, if sold for
consideration, would give rise to capital gain subject to substitute tax as per Decree No.
461 of November 21, 1997. In particular if the donee sells the shares for consideration
within five years from the receipt thereof as gift, the substitute tax will apply on the
capital gain determined as if the gift had never been given. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;United
States Taxation</I></B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a summary of certain U.S. federal income tax consequences to U.S. Holders (as
defined below) of the ownership and disposition of Shares or ADRs. This summary is
addressed to U.S. Holders that hold Shares or ADSs as capital assets, and does not purport
to address all material tax consequences of the ownership of Shares or ADSs. The summary
does not deal with special classes of investors, such as tax-exempt entities, dealers in
securities, traders in securities that elect to mark to market, certain insurance
companies, broker-dealers, investors liable for alternative minimum tax, investors that
actually or constructively own 10% or more of Eni SpA&#146;s Shares, investors that hold
Shares or ADSs as part of a straddle or a hedging or conversion transaction and investors
whose &#147;functional currency&#148; is not the U.S. dollar. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
summary is based on the tax laws of the United States (including the Internal Revenue Code
of 1986, as amended, (the &#147;Code&#148;) its legislative history, existing and proposed
regulations thereunder, published rulings and court decisions) as in effect on the date
hereof, and which are subject to change (or changes in interpretation), possibly with
retroactive effect. The summary is based in part on representations of the Depositary and
assumes that each obligation in the Deposit Agreement and any related agreement will be
performed in accordance with its terms. U.S. Holders should consult their own tax advisors
to determine the U.S. federal, state and local and foreign tax consequences to them of the
ownership and disposition of Shares or ADSs. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used in this section, the term &#147;U.S. Holder&#148; means a beneficial owner of Shares
or ADSs who or that is (i) a citizen or resident of the United States, (ii) a domestic
corporation, (iii) an estate the income of which is subject to United States federal
income tax without regard to its source or (iv) a trust if a court within the United
States is able to exercise primary supervision over the administration of the trust and
one or more United States persons have the authority to control all substantial decisions
of the trust. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
discussion does not address any aspects of United States taxation other than federal
income taxation. In particular, U.S. Holders are urged to confirm their eligibility for
benefits under the income tax convention between the United States and Italy with their
advisors and to discuss with their advisors any possible consequences of their failure to
qualify for such benefits. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
general, and taking into account the earlier assumptions, for the United States federal
income tax purposes, U.S. Holders who own ADRs evidencing ADSs will be treated as owners
of the underlying Shares. Exchanges of Shares for ADSs, and ADSs for shares, generally
will not be subject to United States federal income tax. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
paid on the shares generally will be treated as dividends for U.S. federal income tax
purposes to the extent paid out of Eni SpA&#146;s current or accumulated earnings and
profits as determined for U.S. federal income tax purposes, but will not be eligible for
the dividends received-deduction generally allowed to corporations. To the extent that a
distribution exceeds Eni SpA&#146;s earnings and profits, it will be treated, first, as a
non-taxable return of capital to the extent of the U.S. Holder&#146;s tax basis in the
shares or ADSs, and thereafter as a taxable gain on the sale or exchange of shares or
ADSs. A U.S. Holder will be subject to U.S. federal taxation, on the date of actual or
constructive receipt by the U.S. Holder (in the case of Shares) or by the Depositary (in
the case of ADSs) with respect to the gross amount of any dividends, including any Italian
tax withheld therefrom, without regard to whether any portion of such tax may be refunded
to the U.S. Holder by the Italian tax authorities. If you are a noncorporate U.S. Holder,
dividends paid to you before January 1, 2009 that constitute qualified dividend income
will be taxable to you at a maximum tax rate of 15% provided that you hold the Shares or
ADSs for more than 60 days during the 120-day period beginning 60 days before the
ex-dividend date and meet other holding period requirements. The U.S. Internal Revenue
Service has announced that it will permit taxpayers to apply a proposed legislative change
to the holding period requirement described in the preceding sentence as if such change
were already effective. This legislative &#147;technical correction&#148; would change the
minimum required holding period, retroactive to January 1, 2003, to more than 60 days
during the 121-day period beginning 60 days before the ex-dividend date. Dividends we pay
with respect to the shares or ADSs will be qualified dividend income. The amount of any
dividend paid in lire will equal the U.S. dollar value of the lire received, calculated by
reference to the exchange rate in effect on the date the distribution is includible in
income, regardless of whether the lire are converted into U.S. dollars and U.S. Holders
may recognize foreign currency gain or loss upon the disposition of such lire measured by
the differences between such U.S. dollar value and the amount realized on such
disposition. Such gain or loss will be treated as ordinary income or loss and will not be
eligible for the special tax rate applicable to qualified dividend income. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to certain conditions and limitations, Italian tax withheld from dividends will be treated
as a foreign income tax eligible for credit against the U.S. Holder&#146;s U.S. federal
income tax liability. Special rules apply in determining the foreign tax credit limitation
with respect to dividends that are subject to the maximum 15% tax rate.To the extent a
refund of the tax withheld is available to a U.S. Holder under Italian law or under the
income tax convention, the amount of tax withheld that is refundable will not be eligible
for credit against your United States federal income tax liability. See &#147;Italian
Taxation&#151;Income Tax,&#148; above, for the procedures for obtaining a tax refund. For
the purposes of computing the foreign tax credit, dividends paid on the Shares will be
treated as income from sources outside the United States, but generally will be grouped
separately, together with other items of &#147;passive&#148; or &#147;financial
services&#148; income. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale
or Exchange of Shares</I> </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
general, a U.S. Holder will recognize gain or loss for U.S. federal income tax purposes on
the sale or exchange of Shares or ADSs equal to the difference between the U.S.
Holder&#146;s adjusted basis in the shares or ADSs (determined in U.S. dollars), as the
case may be, and the amount realized on the sale or exchange (or if the amount realized is
denominated in a foreign currency its U.S. dollar equivalent, determined at the spot rate
on the date of disposition). Generally, such gain or loss will be treated as capital gain
or loss if the Shares or ADSs are held as capital assets and will be a long-term capital
gain or loss if the shares or ADSs have been held for more than one year on the date of
such sale or exchange. Long-term capital gain of a non-corporate U.S. Holder that is
recognized on or after May 6, 2003 and before January 1, 2009 is generally subject to a
maximum tax rate of 15% in respect of property held for more than one year. In addition,
any such gain or loss realized by a U.S. Holder generally will be treated as U.S. source
income or loss for U.S. foreign tax credit purposes. </FONT></P>

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<a name="a59"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Documents on Display </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is possible to read and copy documents referred to in this annual report on Form 20-F that
have been filed with the SEC at the SEC&#146;s public reference room located at 450 Fifth
Street, NW, Washington, DC 20549 and at the SEC&#146;s other public reference rooms in New
York City and Chicago. Please call the SEC at 1-800-SEC-0330 for further information on
the public reference rooms and their copy charges. The SEC filings are also available to
the public from commercial document retrieval services and in the website maintained by
the SEC at <U>www.sec.gov</U>. It is also possible to read and copy documents referred to
in this annual report on Form 20-F at the New York Stock Exchange, 20 Broad Street,
17<SUP>th</SUP> floor, New York. </FONT></P>


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<a name="a60"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 11. QUALITATIVE AND
QUANTITATIVE DISCLOSURES OF MARKET RISK </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
operates internationally in the oil and natural gas, electricity generation,
petrochemicals and oilfield services and engineering industries and is subject to exposure
to market risks from changes in interest rates, foreign exchange rates and commodity
prices. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Derivative
financial instruments are utilized by Eni to reduce these risks, as explained below. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s treasury
activities are managed primarily by two captive finance companies, operating in the
Italian and international financial markets. Eni&#146;s operating subsidiaries are
required to reduce foreign exchange rate risk to a minimum level by coordinating their
operations with such finance companies. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni SpA&#146;s Board of Directors has
defined a policy that requires the Treasury Department of Eni SpA to determine the maximum
level of foreign exchange rate and interest rate risks that can be assumed by Eni&#146;s
finance companies. Such policy also defines the eligible counterparties in derivative
transactions. As far as interest rate and foreign exchange rate risks are concerned, the
calculation and measurement techniques followed by Eni&#146;s finance companies are in
accordance with established banking standards (such standards are established by the Basel
Committee). However, the tolerable level of risk adopted by such companies is more
conservative than that defined by the Basel Committee. Eni SpA&#146;s Treasury Department
is responsible for monitoring compliance with Eni&#146;s policy, as well as the
correlation between the indicators adopted for measuring of the tolerable risk level, the
portfolio of financial instruments and market conditions. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
does not enter into derivative transactions on a speculative basis. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company
has estimated its market risk exposure using sensitivity analysis. Market risk exposure
has been defined as the change in fair value of derivative financial and commodity
instruments and other financial instruments assuming a hypothetical 10 percent adverse
change in market prices or rates. Fair value was determined using dealer quotes or
appropriate pricing models. The interest rate used for periods shorter than one year is
LIBOR/EURIBOR. The Company has applied the sensitivity analysis to derivative financial
and commodity instruments and other financial instruments that are exposed to interest
rate, foreign exchange rate and commodities price risk. The results of the sensitivity
analysis are summarized below. Actual changes in market prices or rates may differ from
hypothetical changes. Overall Eni does not expect cash flows associated with derivative
financial instruments for the next five years to be material to its results of operations
or financial condition. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a comprehensive disclosure of market risk see Note 23 to the Consolidated Financial
Statements. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>&nbsp;&nbsp;<B>&nbsp;&nbsp;&nbsp;&nbsp;Foreign
Exchange Risks</B></I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
operations are denominated in various foreign currencies and consequently Eni is exposed
to exchange rate fluctuations that have an impact on its cash flows and financing
activities. The Company&#146;s exposure to foreign currency rates exists primarily with
U.S. dollars versus euro. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
enters into various types of foreign exchange contracts in managing its foreign exchange
risk. The notional amount of these contracts is indicated in the following table: </FONT></P>





<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2002</B> </FONT> </TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Forward exchange contracts </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,611&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,165&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchased options </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">348&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">550&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,959&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,715&nbsp;</B> </FONT> </TD></TR>
</TABLE>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
uses &#147;forward exchange contracts&#148; primarily to hedge existing receivables and
payables, including deposits and borrowings denominated in currencies other than euro, and
uses &#147;currency options&#148; to hedge expenses denominated in foreign currencies.
Currency options, traded in the over-the-counter market for a premium, provide Eni with
the right to buy or sell an agreed amount of currency at a specified exchange rate at the
end of a specified period. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the results of the sensitivity analysis, Eni&#146;s estimated foreign currency market
risk exposure related to net income as of December 31, 2003, was euro 57 million (euro 121
million at December 31, 2002). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;Interest
Rate Risk</B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Debt
and the existence of mismatches between assets and liabilities earning or paying fixed
interests expose Eni to the risk of interest rate fluctuations. Eni enters into various
types of interest rate contracts in managing its interest rate risk. The notional amount
of these contracts is indicated in the following table: </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2002</B> </FONT> </TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest rate swaps </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,206&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,690&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest rate collars </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">129&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Forward rate agreements </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">220&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,555&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,764&nbsp;</B> </FONT> </TD></TR>
</TABLE>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
enters into interest rate derivatives, particularly &#147;interest rate swaps&#148;, to
alter interest rate exposures arising from mismatches between assets and liabilities, to
lower funding costs and to diversify sources of funding. Under interest rate swaps, Eni
agrees with other parties to exchange, at specified intervals, the difference between
interest amount calculated by reference to an agreed notional principal amount and agreed
fixed or floating interest rates. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
uses &#147;interest rate collars&#148; to manage its interest rate risk. An interest rate
collar is a combination of options that enables a predetermined interest rate band to be
locked in. Eni also uses primarily zero-cost collars that do not require payment of an
option premium. Based on the results of the sensitivity analysis, Eni&#146;s estimated
interest market risk exposure related to net income as of December 31, 2003 was euro 90
million (euro 72 million at December 31, 2002). </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>&nbsp;&nbsp;&nbsp;Commodity
Price Risk</B> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
enters into commodity-based derivative contracts to minimize the commodities price
volatility in order to conform costs to revenues. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
natural gas trading activity, Eni uses exchange traded crude oil forward contracts with
the aim of hedging the risk related to natural gas at fixed prices under supply contracts.
The purchase price of such hedging instruments is determined on the basis of a price
basket with an indexation to the petroleum products in the international markets. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
refining and marketing activities of petroleum products, Eni uses derivative instruments
with the aim of reducing the risk of industrial and marketing activities related to the
uncertainty of the market prices. In particular, Eni uses derivatives instruments to avoid
that changes in the conditions of supply and trade markets could worsen in the expected
income in the period between the purchase of crude oil, the refining and the trade of
finished products. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
expiration date of contracts, with some not material exceptions, is less than 1 year.The
table below summarizes trade derivative contracts at December 31, 2002 and 2003. </FONT></P>




<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=2 BORDER=0>

<TR VALIGN=Bottom>
     <TD colspan=2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Dec. 31, 2003</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD colspan=2 ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD colspan=2 ALIGN="CENTER"><hr size="1"></TD>
     <TD colspan=2 ALIGN="CENTER"><hr size="1"></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Buy&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sell&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Buy&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sell&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Crudes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(barrels)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,924,390&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">890,000&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,629,544&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,146,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oil products </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(tonnes)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,992&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66,500&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">159,849&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">381,200&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oil products </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(gallons)&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112,560&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104,580&nbsp; </FONT></TD></TR>
</TABLE>



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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
commodity market risk exposure as of December 31, 2003 is not material (not material at
December 31, 2002 as well). </FONT></P>

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<a name="a61"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 12. DESCRIPTION OF
SECURITIES OTHER THAN EQUITY SECURITIES </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT> </P>

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<a name="a62"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PART
II</B> </FONT> </P>

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<a name="a63"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 13. DEFAULTS,
DIVIDEND ARREARAGES AND DELINQUENCIES </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT> </P>

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<a name="a64"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 14. MATERIAL
MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None. </FONT> </P>


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<P STYLE='page-break-before:always'>

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<a name="a65"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 15. CONTROLS AND
PROCEDURES </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
designing and evaluating the Company&#146;s disclosure controls and procedures, the
Company&#146;s management, including the principal executive officer and principal
financial officer, recognized that any controls and procedures, no matter how well
designed and operated, can provide only reasonable assurance of achieving the desired
control objectives, and the Company&#146;s management necessarily was required to apply
its judgement in evaluating the cost-benefit relationship of possible controls and
procedures. Because of the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues and instances of fraud, if
any, within the Company have been detected. </FONT></P>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
should be noted that Eni has investments in certain unconsolidated entities. As Eni does
not control or manage these entities, its disclosure controls and procedures with respect
to such entities are necessarily more limited than those it maintains with respect to its
consolidated subsidiaries. </FONT></P>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s management, with the participation of the principal executive officer and
principal financial officer, has evaluated the effectiveness of the design and operation
of its disclosure controls and procedures pursuant to Exchange Act Rule 13a-14(c) as of
the end of the period covered by this Form 20-F. Based on that evaluation, the principal
executive officer and principal financial officer have concluded that these disclosure
controls and procedures are effective at the reasonable assurance level. </FONT></P>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
have not been changes in the Company&#146;s internal control over financial reporting that
occurred during the period covered by this Form 20-F that have materially affected, or are
reasonably likely to materially affect, the Company&#146;s internal control over financial
reporting. </FONT></P>


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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Item 16A. Audit
Committee Financial Expert</B> </FONT> </p>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
board of directors has determined that a member of Eni&#146;s Internal
Control Committee, Mr. Mario Giuseppe Cattaneo, qualifies as an &#147;audit committee financial expert&#148;, as
defined in Item 16A of Form 20-F. </FONT></P>

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<a name="a68"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 16B. Code of Ethics </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni
adopted a code of ethics that applies to all Eni&#146;s employees including Eni&#146;s
principal executive officer, principal financial officer and principal accounting officer.
Eni published its code of ethics on Eni&#146;s website. It is accessible at
<U>www.eni.it</U>, under the section Publications - Corporate Responsibility - Code of Practice. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eni&#146;s
code of ethic contains ethical guidelines, describes corporate values and required
standards of business conduct and moral integrity. The ethical guidelines are designed to
deter wrongdoing and to promote honest and ethical conduct, compliance with applicable
laws and regulations and internal reporting of violations of the guidelines. The code also
affirms the principles of accounting transparency and internal control. </FONT></P>

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<a name="a69"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 16C Principal
Accountant Fees and Services </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PricewaterhouseCoopers
SpA has served as Eni independent public auditor for each of the fiscal years in the
three-year period ended December 31, 2003, for which audited consolidated financial
statements appear in this annual report on Form 20-F. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table shows <I>total fees paid by Eni and our subsidiaries for services provided
by Eni public auditor PricewaterhouseCoopers and its member firms, with respect to the
previous two years:</I> </FONT></P>



<TABLE WIDTH=60% ALIGN=CENTER CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD colspan=2 ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="1">For the year ended December 31, </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(thousands of euro) </FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Audit fees </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,177&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,066&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Audit-related fees </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">296&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">750&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Tax fees </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">695&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">828&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">All other fees </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,709&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,179&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,353&nbsp;</B> </FONT> </TD></TR>
</TABLE>


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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit
Fees principally include fees billed for the standard audit work that
needs to be performed each year in order to issue an opinion on the consolidated financial
statements of Eni. It also includes other audit services which are those services that
only the external auditor reasonably can provide, such as comfort letter/consent letter,
certification services, assistance and revision of documents filed with the SEC. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit
Related Fees include fees billed for other assurance and related services
provided by auditors, but not restricted to those that can only reasonably be
provided by the external auditor signing the audit report, that are
reasonably related to the performance of the audit or review of the company&#146;s
financial statements such as audits of pension and benefit plans, merger and acquisition
due diligence, audit and consultancy services rendered in connection with acquisition
deals, checks on internal control systems over financial reporting, certification services
not provided for by law and regulations and consultations concerning financial accounting
and reporting standards. </FONT></P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax
Fees include fees billed for the assistance with compliance and reporting of
income and value added taxes, assistance with assessment of new or changing tax regimes,
tax consultancy in connection with merger and acquisition deals, services rendered in
connection with tax refunds, assistance rendered on occasion of tax inspections and
in connection with tax claims and recourses and assistance
with assessing relevant rules, regulations and facts going into Eni correspondence with
tax authorities. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
Fees include fees billed for services that are permissible under applicable rules and regulations and consist
primarily of consultancy services related to IT and risk management.
 </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Pre-approval Policies and
Procedures of the Internal Control Committee</I> </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Internal Control Committee informed all Group companies that they cannot request
Eni&#146;s external auditors to perform services other than audits, services
related to audits, and to the company&#146;s capital markets transactions.
This restriction applies to our principal external auditor and to other external auditors
performing audit services relating to 5% or more of Eni&#146;s consolidated revenues or
total assets. Services strictly related to auditservices and to the
company&#146;s capital markets transactions have been listed by the Internal Control
Committee. </FONT> </P>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Audit
services and services strictly related to audit services and to the company&#146;s capital
markets transactions have been identified as permissible and have been pre-approved by the
Internal Control Committee, which also informed all Group companies that pre-approval by
the Committee is required for any other service requested to be performed by the external
auditors, including those non-audit services which are permissible under applicable rules
and regulations. </FONT> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 16D Exemptions from
the Listing Standards for Audit Committees </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
applicable. </FONT> </P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 16E Purchases of
Equity Securities by the Issuer and Affiliated Purchasers </FONT></H1>

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<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </FONT></P>


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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>PART III </B></FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 17.
  FINANCIAL STATEMENTS </B></FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Not applicable. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 18.
  FINANCIAL STATEMENTS </B></FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;See pages F-1 through
F-14 </FONT></P>

<BR>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(a) Index to Financial
Statements: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=5% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><U><B>Page</B></U> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f1">Report of Independent Auditors</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f1">F-1</a></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f1">Other Auditors&#146; Reports on the consolidated financial statements of certain major subsidiaries of Eni SpA (separate financial statements not included herein)</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f1">F-2</a></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f8">Consolidated Balance Sheets at December 31, 2002 and 2003</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f8">F-15</a></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f9">Consolidated Statements of Income for the years ended December 31, 2001, 2002 and 2003</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f9">F-16</a></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f10">Consolidated Statements of Cash Flows for the years ended December 31, 2001, 2002 and 2003</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f10">F-10</a></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Supplemental Information for the years ended December 31, 2001, 2002 and 2003</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>F-12</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f13">Consolidated Statements of Changes in Shareholders&#146; Equity for the years ended December 31, 2001, 2002 and 2003</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f13">F-13</a></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f14">Notes to the Consolidated Financial Statements</a></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><a href="#f14">F-14</a></FONT></TD></TR>
</TABLE>


<BR>



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<a name="a75"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 19.   EXHIBITS </B></FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;       By-laws as
amended as of May 28, 2004 </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;       List of
subsidiaries </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Certifications: </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.1.&nbsp;&nbsp;&nbsp;
   Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;12.2.&nbsp;&nbsp;&nbsp;
   Certification pursuant to Rule 13a-14(a) of the Securities Exchange Act </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.1.&nbsp;&nbsp;&nbsp;
   Certification  furnished  pursuant to Rule  13a-14(b) of the Securities Exchange Act (such
 certificate  is not deemed filed for              purpose of Section 18 of the Exchange
Act and not  incorporated  by reference with any filing under the
             Securities Act.) </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;13.2.&nbsp;&nbsp;&nbsp;
   Certification  furnished  pursuant to Rule  13a-14(b) of the Securities Exchange Act (such
 certificate  is not deemed filed for              purpose of Section 18 of the Exchange
Act and not  incorporated  by reference with any filing under the
             Securities Act.) </FONT></P>








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<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>SIGNATURES </B></FONT></P>



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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The registrant
 certifies that it meets all of the  requirements  for  filing on Form 20-F and has duly
 caused  this  annual  report to be signed on its  behalf by the  undersigned, thereunto
duly authorized. </FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date: June  25, 2004 </FONT></P>

<BR>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=45% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni SpA</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ FABRIZIO COSCO</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><hr size=1 align=left width=70%></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fabrizio Cosco</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Title: Deputy Company Secretary</FONT></TD></TR>
</TABLE>

<P STYLE='page-break-before:always'>






<div ALIGN=right><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Exhibit 1</B> </FONT></div>

<div ALIGN=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni S.p.A. By-laws</B> </FONT></div>


<div ALIGN=justify>
<FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Part I - Establishment - Name - Registered Office and Duration of the Company<BR>
<B>ARTICLE 1</B><BR>
1.1 "Eni S.p.A." resulting from the transformation of Ente Nazionale Idrocarburi, a
public law agency, established by Law 136 of February 10, 1953, is regulated by
these by-laws.<BR>
<B>ARTICLE 2</B><BR>
2.1 The registered head office of the company is located in Rome, Italy. Eni S.p.A.
branches are located: two in San Donato Milanese (MI) and one in Gela (CL).<BR>
2.2 Main representative offices, affiliates and branches may be established and/or
wound up in Italy or abroad in compliance with the law.<BR>
<B>ARTICLE 3</B><BR>
3.1 The company is expected to exist until December 31, 2100. Its duration may be
extended one or more times by resolution of the shareholders' meeting.
Part II - Company Objects<BR>
<B>ARTICLE 4</B><BR>
<B>4.1 </B>The company objects are the direct and/or indirect management, by way of
shareholdings in companies, agencies or businesses, of activities in the field of
hydrocarbons and natural vapours, such as exploration and development of
hydrocarbon fields, construction and operation of pipelines for transporting the
same, processing, transformation, storage, utilisation and trade of hydrocarbons
and natural vapours, all in respect of concessions provided by law.<BR>
The company also has the object of direct and/or indirect management, by way of
shareholdings in companies, agencies or businesses, of activities in the fields of
chemicals, nuclear fuels, geothermy and renewable energy sources, in the sector
of engineering and construction of industrial plants, in the mining sector, in the
metallurgy sector, in the textile machinery sector, in the water sector, including
derivation, drinking water, purification, distribution and reuse of waters; in the
sector of environmental protection and treatment and disposal of waste, as well as
in every other business activity that is instrumental, supplemental or
complementary with the aforementioned activities. The company also has the
object of managing the technical and financial co-ordination of subsidiaries and
affiliated companies as well as providing financial assistance on their behalf. The
company may perform any operations necessary or useful for the achievement of
the company objects; by way of example, it may initiate operations involving real
estate, moveable goods, trade and commerce, industry, finance and banking asset
and liability operations, as well as any action that is in any way connected with the
company objects with the exception of public fund raising and the performance of
investment services as regulated by Legislative Decree No. 58 of February 24,
1998.<BR>
The company may take shareholdings and interests in other companies or
businesses with objects similar, comparable or complementary to its own or those
of companies in which it has holdings, either in Italy or abroad, and it may provide
real and or personal bonds for its own and others' obligations, especially
guarantees.<BR>
Part III - Capital - Shareholdings - Bonds<BR>
<B>ARTICLE 5</B><BR>
5.1 The company capital is euro 4,002,936,826.00 (four billion two million nine
hundred and thirty-six thousand eight hundred and twenty-six comma zero zero)
represented by 4,002,936,826 (four billion two million nine hundred and thirty-six
thousand eight hundred and twenty-six) shares of ordinary stock with a nominal
value of euro 1.00 (one comma zero zero) each.<BR>
5.2 Shares may not be split up and each share is entitled to one vote.<BR>
5.3 The fact of being a Shareholder in itself constitutes approval of these by-laws.<BR>
5.4 The Board of Directors in execution of the delegation of authority resolved
pursuant to Article 2443 of the Civil Code by the Shareholders' Meeting held on
June 6, 2000 approved in the Meetings held on June 21, 2000 and June 7, 2001 to
increase the company capital up to euro 3,500,000 (three million five hundred
thousand). Therefore the Board resolved to issue up to 3,500,000 (three million
five hundred thousand) ordinary shares nominal value euro 1 (one) each, bearing
regular coupon, by using the Reserve for the issue of shares pursuant to Article
2349 of the Civil Code for a corresponding amount. The shares have been
assigned pursuant to Article 2349 of the Civil Code to managers employed by the
company and its subsidiaries controlled directly or indirectly by Eni S.p.A. pursuant
to Article 2359 of the Civil Code who have achieved the pre-set annual corporate
and individual targets. In the two-year period concerned by the Plan the total figure
of the commitments of share offerings was 1,428,550 in the year 2000 and
1,851,750 in the year 2001 for a total amount of 3,280,300 shares. Eni share
capital will be increased up to the amount corresponding to the shares subscribed
until the term of December 31, 2004.<BR>
5.5 Pursuant to Article 2443 of the Civil Code, the Board of Directors is delegated
to increase the company share capital, for no consideration and within December
31, 2002, in one or more times, pursuant to Article 2349 of the Civil Code, up to
euro 1,500,000 (one million five hundred thousand). The Board may therefore
issue up to 1,500,000 (one million five hundred thousand) ordinary shares nominal
value 1 (one) euro each, bearing regular coupon, by using the Reserve for the
issue of shares pursuant to Article 2349 of the Civil Code for a corresponding
amount. The shares to be issued will be assigned pursuant to Article 2349 of the
Civil Code to managers employed by the company and its subsidiaries controlled
directly or indirectly by Eni S.p.A. pursuant to Article 2359 of the Civil Code, listed
subsidiaries excepted, who have achieved the pre-set 2001 individual targets. The
shares will be offered for subscription for no consideration within a month from the
expiration of a three-year term commencing as of the date of the communication of
the commitment of the offer to the assignee. The company capital will be increased
up to the amount corresponding to the shares subscribed until the term of June 30,
2006.<BR>
The Board of Directors is empowered to adopt any act to define terms and
conditions for the execution of the share capital increase, including but not limited
to the approval of the "Regulations of the 2002 Plan of Assignation of Eni S.p.A.
shares to be issued pursuant to Article 2349 of the Civil Code".<BR>
<B>ARTICLE 6</B><BR>
6.1 Pursuant to Article 3 of Law Decree 332 of May 31, 1994, converted with
amendments into Law 474 of July 30, 1994, no one, in any capacity, may own
company shares that entail a holding of more than 3 per cent of voting share
capital.<BR>
Such maximum shareholding limit is calculated by taking into account the
aggregate shareholding held by the controlling entity, either a physical or legal
person or company; its directly or indirectly controlled entities, as well as entities
controlled by the same controlling entity; affiliated entities as well as people related
to the second degree by blood or marriage, also in the case of a legally separated
spouse. Control exists, with reference also to entities other than companies, in the
cases envisaged by Article 2359, paragraphs 1 and 2 of the Civil Code. Affiliation
exists in the case set forth in Article 2359, paragraph 3 of the Civil Code as well as
between entities that directly or indirectly, by way of subsidiaries, other than those
managing investment funds, are bound, even with third parties, in agreements
regarding the exercise of voting rights or the transfer of shares or portions of third
companies or, in any event, in agreements or pacts as per Article 122 of
Legislative Decree No. 58 of February 24, 1998 regarding third party companies if
said agreements or pacts concern at least 10 per cent of the voting capital, if they
are listed companies, or 20 per cent if they are unlisted companies.<BR>
The aforementioned shareholding limit (3 per cent) is calculated by taking into
account shares held by any fiduciary nominee or intermediary. Any voting rights
attributable to voting capital held or controlled in excess of the maximum limit
indicated in the foregoing cannot be exercised and the voting rights of each entity
to whom such limit on shareholding applies are reduced in proportion, unless
otherwise jointly provided in advance by the parties involved. In the event that
shares exceeding this limit are voted, any Shareholders' resolution adopted
pursuant to such a vote may be challenged pursuant to Article 2377 of the Civil
Code, if the required majority had not been reached without the votes exceeding
the aforementioned maximum limit. Shares not entitled to vote are included in the
determination of the quorum at shareholders' meetings.<BR>
6.2 Pursuant to Article 2, paragraph 1 of Law Decree 332 of May 31, 1994,
converted with amendments into Law 474 of July 30, 1994, the Minister of
Treasury, Budget and Economic Planning in agreement with the Minister of
Industry, Trade and Crafts, retains the following special powers sanctioned in the
forms envisaged by the aforementioned Law 474 of 1994:<BR>
a) approval to be expressly granted on the acquisition of material shareholdings by
entities affected by the shareholding limit as set forth in Article 3 of Law Decree
332 of May 31, 1994, converted with amendments into Law 474 of July 30, 1994,
by which are meant those representing 3 per cent of share capital with the right to
vote at the ordinary shareholders' meeting. Approval must be granted within sixty
days of the date of notice which must be filed by the Board of Directors at the time
request is made for registration in the Shareholders' book. Until approval is granted
and, in any case, after expiration of the term, the transferee can not exercise voting
rights and, in any case, non economic rights connected with the shares that
represent a material shareholding. In the event that approval is denied or the term
expires without such approval, the transferee must sell said shares within one
year. Failing to comply, the law courts, at the request of the Minister of Treasury,
Budget and Economic Planning, will order the sale of shares that represent a
material shareholding according to the procedures as per Article 2359-ter of the
Civil Code;<BR>
b) approval to be expressly granted as condition for the validity of Shareholders' or
other agreements as per Article 122 of Legislative Decree No. 58 of February 24,
1998, involving 3 per cent or more of the share capital with the right to vote at
ordinary shareholders' meetings. Until approval of such Shareholders' or other
agreement is granted and, in any case, after expiration of the term, the
Shareholders participating in such agreement can not exercise voting rights and, in
any case, non economic rights connected with the shares. The power of approval
must be exercised within sixty days of the date when CONSOB notifies the Ministry
of Treasury, Budget and Economic Planning of pertinent pacts and agreements as
per the aforementioned Article 122 of Legislative Decree No. 58 of February 24,
1998. In the event such approval is denied or the term expires without such
approval, such agreements are ineffective;<BR>
c) veto power with respect to resolutions to dissolve the company, to transfer the
business, to merge, to demerge or to transfer the company's registered office
abroad, to change the company objects and to amend the by-laws cancelling or
modifying the powers as per letters a), b), c) and d) of this Article;<BR>
d) appointment of one member to the Board of Directors and one member to the
Board of Statutory Auditors. Should such appointed Director or Auditor lapse, the
Minister of Treasury, Budget and Economic Planning in agreement with the
Minister of Industry, Trade and Crafts, will appoint his corresponding replacement.<BR>
<B>ARTICLE 7</B><BR>
7.1 When shares are fully paid, and if the law so allows, they may be issued to the
bearer. Bearer shares may be converted into registered shares and vice-versa.
Conversion operations are performed at the Shareholder's expense.<BR>
<B>ARTICLE 8</B><BR>
8.1 In the event, and for whatever reason, a share belongs to more than one
person, the rights relating to said share may not be exercised by other than one
person or by a proxy for all co-owners.<BR>
<B>ARTICLE 9</B><BR>
9.1 The shareholders' meeting may resolve to increase the company capital and
establish terms, conditions and means thereof.<BR>
9.2 The shareholders' meeting may resolve to increase the company capital by
issuing shares, including shares of different classes, to be assigned for no
consideration pursuant to Article 2349 of the Civil Code.<BR>
<B>ARTICLE 10</B><BR>
10.1 Payments on shares are requested by the Board of Directors in one or more
times.<BR>
10.2 Shareholders who are late in payment are charged an interest calculated at
the official discount rate established by the Bank of Italy besides the provisions
envisaged in Article 2344 of the Civil Code.<BR>
<B>ARTICLE 11</B><BR>
11.1 The company may issue bonds, including convertibles and warrant bonds in
compliance with the law.<BR>
Part IV - Shareholders' Meeting<BR>
<B>ARTICLE 12</B><BR>
12.1 Ordinary and extraordinary shareholders' meetings are usually held at the
company registered office unless otherwise resolved by the Board of Directors,
provided however they are held in Italy.<BR>
12.2 Ordinary shareholders&#146; meetings must be called at least once a year to
approve the financial statements, within 180 days of the end of the business year,
as the Company approves the Group Financial Statements.<BR>
<B>ARTICLE 13</B><BR>
13.1 Shareholders&#146; meetings are convened through a notice to be published on the
Italian Official Gazette, according to the current legislation and in compliance with
the rules in force regulating the exercise of the vote by mail.<BR>
13.2 Admission to the shareholders&#146; meeting is subject to the delivery, also for
registered shares, of the certification issued by financial intermediaries at least two
days before the date of the shareholders&#146; meeting on first call.<BR>
<B>ARTICLE 14</B><BR>
14.1 Each Shareholder entitled to attend the Meeting may also be represented in
compliance with the law by a person appointed by written proxy. Incorporated
entities and companies may attend the Meeting by way of a person appointed by
written proxy. In order to simplify collection of proxies issued by Shareholders who
are employees of the company or its subsidiaries and members of Shareholders
associations incorporated under and managed pursuant to current legislation
regulating proxies collection, notice boards for communications and rooms to allow
proxies collection are made available to said associations according to terms and
conditions agreed from time to time by the company with the associations
representatives.<BR>
14.2 The Chairman of the Meeting has to assure the regularity of written proxies
and, in general, the right to attend the Meeting.<BR>
14.3 The right to vote may also be exercised by mail according to the laws and
regulations in force concerning this matter.<BR>
14. Eni S.p.A. shareholders' meetings are disciplined by Eni S.p.A.'s shareholders'
meeting Regulation approved by the ordinary shareholders' meeting.<BR>
<B>ARTICLE 15</B><BR>
15.1 The Meeting is chaired by the Chairman of the Board of Directors, or in the
event of absence or impediment, by the Managing Director; in absence of both, by
another person, duly delegated by the Board of Directors, failing which the Meeting
may elect its own Chairman.<BR>
15.2 The Chairman of the Meeting is assisted by a Secretary, who need not be a
Shareholder, to be designated by the Shareholders present, and may appoint one
or more scrutineers.<BR>
<B>ARTICLE 16</B><BR>
16.1 The ordinary shareholders' meeting decides on all the matters for which it is
legally entitled and authorises the transfer of the business.<BR>
16.2 Resolutions either at ordinary or extraordinary meetings, either on first,
second or third call, must be taken with the majority required by the law in each
case.<BR>
16.3 Resolutions of the Meeting taken in compliance with the law and these bylaws
are binding for all Shareholders even if absent or dissenting.<BR>
16.4 The minutes of ordinary meetings must be signed by the Chairman and the
Secretary.<BR>
16.5 The minutes of extraordinary meetings must be drawn up by a notary public.<BR>
Part V - The Board of Directors<BR>
<B>ARTICLE 17</B><BR>
17.1 The company is managed by a Board of Directors consisting of no fewer than
three and no more than nine members. The shareholders' meeting determines the
number within these limits.<BR>
17.2 The Board of Directors is appointed for a period of up to three financial years;
this term lapses on the date of the shareholders&#146; meeting convened to approve the
financial statements of the last year of their office. They may be reappointed.<BR>
17.3 The Board members, except for the one appointed pursuant to Article 6.2,
letter d) of these by-laws, are appointed by the shareholders' meeting on the basis
of lists presented by Shareholders and by the Board of Directors, in such lists the
candidates must be listed in numerical order. Should the retiring Board of Directors
present its own candidate list, it must be deposited at the company's registered
office and published in at least three Italian newspapers of general circulation, two
of them business dailies, at least twenty days before the date set for the first call of
the shareholders' meeting. Candidate lists presented by Shareholders must be
deposited at the company registered office and published as indicated in the
foregoing at least ten days before the date set for the first call of the shareholders'
meeting.<BR>
Each Shareholder may present or take part in the presenting of only one candidate
list and each candidate may appear in one list only or he will be ineligible.<BR>
Companies that are controlling entities or are under common control, as defined by
Article 2359, first Paragraph, of the Civil Code, by the same entity of the company
presenting a list shall not present nor take part in the presentation of another
candidate list. Each candidate may appear in one list only or he will be ineligible.<BR>
Only those Shareholders who, alone or together with other Shareholders,
represent at least 1 per cent of voting share capital at the ordinary shareholders'
meeting may present candidate lists. In order to demonstrate the title on the
number of shares necessary to present candidate lists, the Shareholders must
present and/or deliver to the company registered office a copy of the certification
issued by the authorised financial intermediaries that are depositaries of their
shares at least five days prior to the date set for the first call of the shareholders'
meeting.<BR>
Together with each list, within the aforementioned time limits, statements must be
presented in which each candidate accepts his nomination and attests, in his own
responsibility, that he possesses the requisites required by the norms in force for
the corresponding appointments and that causes for his ineligibility and
incompatibility are non existing.<BR>
Each person entitled to vote may vote for a candidate list only.<BR>
Board members will be elected in the following manner:<BR>
a) seven tenths of the members to be elected will be drawn out from the candidate
list that receives the majority of votes expressed by the Shareholders in the
numerical order in which they appear on the list, rounded off in the event of a
fractional number to the next lower number;<BR>
b) the remaining Board members will be drawn out from the other candidate lists;
to this purpose the votes obtained by each candidate list will be divided by one
or two depending on the number of the members to be elected. The quotients
thus obtained will be assigned progressively to candidates of each said list in
the order given in the lists themselves. Quotients thus assigned to candidates
of said lists will be set in one decreasing numerical order. Those who obtain the
highest quotients will be elected.<BR>
In the event that more than one candidate obtains the same quotient, the
candidate elected will be the one of the list that has not hitherto had a Board
member elected or that has elected the least number of Board members.<BR>
In the event that none of the lists has yet elected a Board member or that all of
them have elected the same number of Board members, the candidate from all
such lists who has obtained the largest number of votes will be elected. In the
event of equal list votes and equal quotient, a new vote will be taken by the
entire shareholders' meeting and the candidate elected will be the one who
obtains a simple majority of the votes;<BR>
c) to appoint Board members for any reason not covered by the terms of the
aforementioned procedure, the shareholders' meeting will make a resolution
with the majorities prescribed by the law.<BR>
17.4 The shareholders' meeting may, even during the Board's term of office,
change the number of members of the Board of Directors, always within the limits
set forth in paragraph 17.1 above, and make the relating appointments. Board
members so elected will expire at the same time as the rest of the Board.<BR>
17.5 If during the term of office one or more members leave the Board, action will
be taken in compliance with Article 2386 of the Civil Code with exception of the
Board member appointed pursuant to Article 6.2 letter d) of these by-laws. If a
majority of members leaves the Board, the whole Board will be considered lapsed
and the Board must promptly call a shareholders' meeting to appoint a new Board.<BR>
<B>ARTICLE 18</B><BR>
18.1 If the shareholders' meeting has not appointed a Chairman, the Board will
elect one of its members.<BR>
18.2 The Board, at the Chairman's proposal, appoints a Secretary, who need not
belong to the company.<BR>
<B>ARTICLE 19</B><BR>
19.1 The Board meets in the place indicated in the notice whenever the Chairman
or, in case of absence or impediment, the Managing Director deems necessary, or
when written application has been made by the majority of the members. The
Board of Directors may be convened also pursuant to Article 28.4 of the by-laws.<BR>
The Board of Directors' meetings may be held by video or teleconference if each of
the participants to the meetings may be identified and if each is allowed to follow
the discussion and take part to it in real time. If said conditions are met, the
Meeting is considered duly held in the place where the Chairman and the
Secretary are present.<BR>
19.2 Usually notice is given at least five days in advance. In cases of urgency
notice may be sent earlier. The Board of Directors decides on how to convene its
meetings.<BR>
19.3 The Board of Directors must likewise be convened when so requested by at
least two Board members or by one member if the Board consists of three
members to decide on a specific matter considered of particular importance,
pertaining to management, matter to be indicated in the request.<BR>
<B>ARTICLE 20</B><BR>
20.1 The Chairman of the Board or, in his absence, the oldest Board member in
attendance chairs the Meeting.<BR>
<B>ARTICLE 21</B><BR>
21.1 A majority of members of the Board must be present for a Board meeting to
be valid.<BR>
21.2 Resolutions are taken with a majority vote of those present; should votes be
equal, the person who chairs the Meeting has a casting vote.<BR>
<B>ARTICLE 22</B><BR>
22.1 Resolutions of the Board are entered in the minutes, which are recorded in a
book kept for that purpose pursuant to the law, and said minutes are signed by the
Chairman of the Meeting and by the Secretary.<BR>
22.2 Copies of the minutes are bona fide if they are signed by the Chairman or the
person acting for him and countersigned by the Secretary.<BR>
<B>ARTICLE 23</B><BR>
23.1 The Board of Directors is invested with the fullest powers for ordinary and
extraordinary management of the company and, in particular, the Board has the
power to perform all acts it deems advisable for the implementation and
achievement of the company objects, except for the acts that the law or these bylaws
reserve for the shareholders' meeting.<BR>
23.2 The Board of Directors is allowed to resolve on the following matters:<BR>
- - the merger and the demerger of at least 90% directly owned subsidiaries;<BR>
- - the establishment and winding up of branches;<BR>
- - the amendment to the by-laws in order to comply with the current legislation.<BR>
23.3 The Board of Directors and the Managing Director report timely, at least every
three months and however in the Board of Directors meetings, to the Board of
Statutory Auditors on the activities and on the most relevant operations regarding
the operational, economic and financial management of the company and its
subsidiaries; in particular the Board of Directors and the Managing Director report
to the Board of Statutory Auditors on operations entailing an interest on their behalf
or on behalf of third parties.<BR>
<B>ARTICLE 24</B><BR>
24.1 The Board of Directors delegates its powers to one of its members in
compliance with the limits set forth in Article 2381 of the Civil Code; in addition the
Board of Directors may delegate powers to the Chairman for researching and
promoting integrated projects and strategic international agreements. The Board of
Directors may at any time withdraw the delegations of powers hereon; if the Board
of Directors withdraws powers delegated to the Managing Director, a new
Managing Director is simultaneously appointed.<BR>
The Board of Directors, upon proposal of the Chairman and in agreement with the
Managing Director, may confer powers for single acts or categories of acts on
other members of the Board of Directors. The Chairman and the Managing
Director, in compliance with the limits of their delegations, may delegate and
empower company employees or persons not belonging to the company to
represent the company for single acts or specific categories of acts.
Further, on proposal of the Managing Director and in agreement with the
Chairman, the Board of Directors may also appoint one or more General Managers
and determines the powers to be conferred to them.<BR>
<B>ARTICLE 25</B><BR>
25.1 Legal representation towards any judicial or administrative authority and
towards third parties, together with the company signature, are vested either onto
the Chairman or the Managing Director.<BR>
<B>ARTICLE 26</B><BR>
26.1 The Chairman and the members of the Board are remunerated in an amount
established by the ordinary shareholders' meeting. Said resolution, once taken, will
remain valid for subsequent business years until the shareholders' meeting
decides otherwise.<BR>
<B>ARTICLE 27</B><BR>
27.1 The Chairman:<BR>
a) represents the company according to the provisions of Article 25.1;<BR>
b) chairs the shareholders' meeting pursuant to Article 15.1;<BR>
c) convenes and chairs meetings of the Board of Directors pursuant to Articles
19.1 and 20.1;<BR>
d) ascertains whether Board resolutions have been implemented;<BR>
e) exercises the powers delegated to him by the Board of Directors pursuant to
Article 24.1 of these by-laws.<BR>
Part VI - Board of Statutory Auditors<BR>
<B>ARTICLE 28</B><BR>
28.1 The Board of Statutory Auditors consists of five effective members and two
alternate members. The Auditors shall have the professional and honour
requirements set forth by the Ministerial Decree No. 162, dated March 30, 2000
issued by the Ministry of Justice.<BR>
Pursuant to the aforementioned Ministerial Decree, the matters strictly connected
to those of interest of the Company are: companies law, business economics and
corporate finance.<BR>
Pursuant to said Ministerial Decree, the sectors strictly connected with those of
interest of the Company are the engineering and geological sectors.<BR>
Those who are already appointed effective auditor or supervisory board member or
audit committee member in at least five companies with securities listed on
regulated securities markets other than Eni S.p.A. subsidiaries may not be
appointed Statutory Auditor; if elected, they will lapse.<BR>
28.2 The effective Auditors, except for the one appointed pursuant to Article 6.2
letter d) of these by-laws, and the alternate Auditors are appointed by the
shareholders' meeting on the basis of lists presented by the Shareholders; in such
lists candidates are listed in numerical order. For the presentation, deposit and
publication of candidate lists the procedures set forth in Article 17.3 apply.<BR>
Lists shall be divided into two sections: the first one for the candidates to be
appointed effective Auditors and the second one for the candidates to be
appointed alternate Auditors. At least the first candidate of each section shall be
chartered accountant and have exercised audit activities for at least three years.<BR>
Two effective Auditors and one alternate Auditor will be drawn in such order from
the list with the majority of votes. The other two effective Auditors and the other
alternate Auditor will be appointed pursuant to Article 17.3, letter b) of the by-laws.<BR>
The procedure described in this last Article shall be applied to each section of the
lists involved separately.<BR>
To appoint effective or alternate Auditors for any reason not elected according to
the terms of the aforementioned procedure, the shareholders' meeting will make a
resolution with the majorities prescribed by the law.<BR>
The chairmanship of the Board of Statutory Auditors will go to the Auditor
appointed pursuant to Article 6.2, letter d) of these by-laws. Should an effective
Auditor drawn out from the candidate list that receives the majority of votes
expressed by the Shareholders be replaced, he will be succeeded by the alternate
Auditor drawn out from the same candidate list; should an effective Auditor drawn
out from the other candidate list be replaced, he will be substituted pursuant to
Article 17.3, letter b) of the by-laws; should the Chairman of the Board of the
Statutory Auditors be replaced, Article 6.2, letter d) of these by-laws shall apply.<BR>
28.3 Retiring Auditors may be reelected.<BR>
28.4 Subject to a previous communication to the Chairman of the Board of
Directors, the Board of Statutory Auditors is empowered to convene the
shareholders' meeting and the Board of Directors. At least two effective Auditors
are empowered to convene the shareholders' meeting and the Board of Directors,
too.<BR>
Part VII - Financial Statements and Profits<BR>
<B>ARTICLE 29</B><BR>
29.1 The business year ends on December 31 every year.<BR>
29.2 At the end of each business year, the Board of Directors sees to the
preparation of the company financial statements in conformity with the law.<BR>
29.3 The Board of Directors may, during the course of the business year, pay
interim dividends to the Shareholders.<BR>
<B>ARTICLE 30</B><BR>
30.1 Dividends not collected within five years of the day on which they are payable
will be prescribed in favour of the company and allocated to reserves.<BR>
Part VIII - Winding Up and Liquidation of the Company<BR>
<B>ARTICLE 31</B><BR>
31.1 In the event the company is wound up, the shareholders' meeting will decide
the manner of liquidation, appoint one or more liquidators and determine their
powers and remuneration.<BR>
Part IX - General Provisions<BR>
<B>ARTICLE 32</B><BR>
32.1 For matters not expressly regulated by these by-laws, the norms of the Civil
Code and specific laws concerning these matters will apply.<BR>
32.2 The Ministry of Treasury, Budget and Economic Planning may retain his
shareholding in the company share capital in excess of the limit set forth in Article
6.1 of these by-laws and will not be subject to the provisions of said Article 6.1 for
the period set by the law.<BR>
<B>ARTICLE 33</B><BR>
33.1 The company retains all assets and liabilities held before its transformation by
the public law agency Ente Nazionale Idrocarburi.<BR>
<B>Eni S.p.A.'s Shareholders' Meeting Regulation ("The Regulation")</B><BR>
Article 1 - Application<BR>
1. Ordinary and Extraordinary shareholders' meetings (the "Meetings" or the
"Meeting") of Eni S.p.A. ("Eni"), a company incorporated under the Italian law with
Registred Office in Rome, Piazzale Enrico Mattei, No. 1, are held pursuant to the
norms set forth by this Regulation.<BR>
2. The Regulation approved by the Ordinary shareholders' meeting held on
December 4, 1998, is at the Shareholders' disposal at the Company Registred
Office and in the locations of the shareholders' meeting.<BR>
Article 2 - Participation to the Meetings<BR>
1. Attendance to the meetings is disciplined by the provisions of the current
legislation, Eni by-laws and the Notice of the shareholders' meeting (the "Notice").<BR>
2. Subject to a request to be delivered to Eni Corporate Secretary (the "Secretary")
according to the provisions set forth in the Notice at least two days before the
relevant Meeting, and subject to the consent of the Chairman of the Meeting (the
"Chairman"), financial analysts, experts, journalists and representatives of Eni
Independent Auditors (the "Analysts") are allowed to attend the Meeting.<BR>
3. If deemed useful by the Chairman for the correct course of the Meeting, also in
relation to the items in the Agenda, employees of the Company and its subsidiaries
(the "Employees") may attend the Meeting.<BR>
Article 3 - Control of the Conditions Allowing Participation to the Meetings<BR>
1. Procedures for identification of persons wishing to attend the Meeting and
controls of powers entitling their participation take place at the same location of the
Meeting and begin an hour before the Meeting itself.<BR>
2. In order to simplify the aforementioned controls, those who intend to participate
to the Meeting as legal or voluntary representatives of Shareholders and as
Analysts, are requested to deliver to the Secretary the deeds entitling them to
participate to the Meeting according to the provisions set forth in the Notice two
days before the date of the Meeting.<BR>
Article 4 - Admittance to the Meeting<BR>
1. Subject to the execution of the identification and control procedures set forth in
Article 3, paragraph 1, of the Regulation, persons are entitled to enter the Meeting
room. As soon as the identification procedures are completed, each Shareholder
or his representative (the "Shareholders" or the "Shareholder"), Employees and
Analysts is given a badge to be worn until they leave the Meeting.<BR>
2. Shareholders wishing to leave the Meeting must contact the Meeting staff.<BR>
3. Unless otherwise provided by the Chairman, and notwithstanding the provisions
applicable pursuant to Article 5 of the Regulation, the use of recorders, cameras
and similar instruments is not allowed in the location of the Meeting.<BR>
Article 5 - Constitution and Opening of the Meeting<BR>
1. minutes of the Meeting are written down by a secretary, not necessarily chosen
among Shareholders, if a Notary public is not appointed. The secretary is
appointed by the Shareholders upon proposal of the Chairman. The secretary or
the Notary may use reliable staff and recording instruments.<BR>
2. The Chairman may appoint one or more scrutineers, not necessarily chosen
among Shareholders, and a Chairmanship Office (the "Office").<BR>
3. In order to assure order in the Meeting, the Chairman may apply to clerks
recognisable through specific badges.<BR>
4. Pursuant to Article 14 of the by-laws, the Chairman, also through the scrutineers
and the Office, controls the regularity of proxies and the right to attend the Meeting.<BR>
5. If the majority of capital necessary for the Meeting to start is not reached, the
Chairman adjourns the Meeting to the next call, at least an hour after the time set
in the Notice for the beginning of the Meeting.<BR>
6. Once the regular constitution has been ascertained, the Chairman opens the
Meeting.<BR>
Article 6 - Interruption and Adjournment of the Meeting<BR>
1. If not otherwise resolved, the Meeting takes place in a single day. With the
exclusion of Article 7, paragraph 4, of the Regulation, if necessary and if the
Meeting does not vote against the proposal, the Chairman may interrupt the
Meeting for periods no longer than two hours.<BR>
2. Notwithstanding Article 2374 of the Civil Code, the Meeting may resolve, with
the majority of the share capital represented, the adjournment of the Meeting
specifying the new location, day and hour. The term after which the adjournment
may take place is set considering the cause of the interruption and cannot be
longer than thirty days.<BR>
Article 7 - Discussion<BR>
1. The Chairman illustrates the items in the Agenda also through Directors,
Auditors and Employees. The order of the items in the Agenda may be modified
through a resolution of the shareholders' meeting voted by the majority of the
share capital represented in the Meeting.<BR>
2. The Chairman directs the Meeting and guarantees fairness in the discussion
and the right to intervene of Shareholders. In view of the foregoing, at the
beginning of the Meeting, the Chairman sets the maximum duration of each
intervention that may not ordinarily exceed fifteen minutes. The Chairman may: (i)
invite to finish interventions if longer than the term set by the Chairman or not
pertinent to the items in the Agenda; (ii) avoid clear excesses of Shareholders, also
interrupting their interventions; (iii) and in extreme circumstances order that the
Shareholder causing such situations leaves the Meeting until the discussion on the
item in the Agenda ends.<BR>
3. The request of discussion on each item in the Agenda may be presented to the
Office from the beginning of the Meeting and until the Chairman opens the
discussion on the relevant item. If not otherwise resolved, persons entitled are
invited to speak following the order of reservation of their requests. Each
Shareholder may intervene only once on each item in the Agenda.<BR>
4. If not otherwise resolved, the Chairman, also through Directors, Auditors and
Employees, answers to Shareholders at the end of all interventions on each item in
the Agenda. In order to answer to the questions, the Chairman may interrupt the
Meeting for no longer than two hours. At the end of the answers, the Chairman
declares the end of discussion. Shareholders may not reply to the answers
received. After the end of the discussion, only brief declarations of vote are
allowed.<BR>
Article 8 - Voting Procedures<BR>
1. The Chairman resolves whether the voting procedures on each item in the
Agenda will take place after the discussion on one item only or after the discussion
on more than one item.<BR>
2. Before the beginning of the voting procedures, upon resolution of the Chairman,
Shareholders who have not taken part to the discussion pursuant to Article 7,
paragraph 3, of the Regulation are re-admitted to the Meeting.<BR>
3. The vote is open.<BR>
4. The Chairman regulates the voting procedures and may set a term for the
exercise of the voting right. At the end of the voting procedures, the polls take
place. Once the poll is over, the Chairman, also through the secretary or the
Notary, declares the results to the Meeting.<BR>
5. Votes expressed differently from the way set by the Chairman are considered
void.<BR>
6. Shareholders who vote against or who abstain on a proposal on an item in the
Agenda shall give their name to the staff in charge. Once the voting rights have
been exercised on each item in the Agenda, the Chairman declares the end of the
Meeting.<BR>
Article 9 - General Provisions<BR>
1. For matters not expressly regulated by this Regulation, the norms of the Civil
Code and specific laws concerning these matters and the by-laws will apply. </FONT> </div>

<P STYLE="page-break-before:always">


<P ALIGN=right> <FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EXHIBIT
8</B> </FONT></P>

<P ALIGN=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>List of Eni's subsidiary
for year 2003</B> </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Subsidiary</FONT></TD>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Country of Incorporation</FONT></TD>
     <TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Eni's interest (%)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exploration &amp; Production</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Societ&#224; Petrolifera Italiana SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.96</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Stargas Italia SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.96</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Stoccaggi Gas Italia SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Caspian Sea BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Energy and Natural</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Resources (Nigeria) Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Karachaganak BV </B>(in liquidation) </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Mauritania BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Oil Ecuador BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni A E P Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Exploration</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&amp; Production Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Algeria Exploration BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Algeria Exploration BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Algeria Ltd S&#224;rl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Luxembourg</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Resources</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>International Ltd S&#224;rl)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Algeria Production BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Algeria Production BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Ambalat Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (Ambalat) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni America Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo America Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Angola Exploration BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Angola Exploration BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Angola Production BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Angola Production BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni ANS Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip North Sea Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni AOG Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Oil &amp; Gas Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni AUL Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (AUL) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Australia BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Australia BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Australia Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Australia Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni BBH Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip (BBH) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni BBI Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip (BBI) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni BB Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip (BB) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni BBOH Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip (BBOH) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni BB Petroleum Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni BB Pipeline Llc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex British-Borneo Pipeline Llc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Birch Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Birch Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Brupex Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Brupex Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Bukat Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (Bukat) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni China BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip China BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Congo SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Congo</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Congo SA)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Croatia BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Croatia BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Daci&#243;n BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Venezuela BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Deepwater Llc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex British-Borneo Deepwater Llc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Denmark BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Denmark BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni DMF Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (DMF) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Elgin/Franklin Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Elgin/Franklin Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Energy BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Energy BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Energy Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Energy Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Exploration BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Exploration BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Finance Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Finance Inc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Forties Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Forties Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Gabon SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Gabon</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.97</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Gabon SA)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Ganal Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (Ganal) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Grand Maghreb BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Grand Maghreb BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Guibsen Exploration BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Guibsen Exploration BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Indonesia Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (Indonesia) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni International Exploration Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (International</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exploration) Ltd) United Kingdom</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni International Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo International Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni International NA NV S&#224;rl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Luxembourg</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip International (NA) NV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Investments Plc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Investments Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Iran BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Iran BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Ireland BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Ireland BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Jpda 03-13 Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Australia 91-13 Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Krueng Mane Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Krueng Mane Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Lasmo Plc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Linv Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Investments Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Liverpool Bay Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument (Liverpool Bay)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Petroleum Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni LNS Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo North Sea Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Malacca Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Malacca Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Malagot Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (Malagot) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Marketing Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex British-Borneo Marketing Inc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Mep Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Exploration</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&amp; Production Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Methodplan Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Methodplan Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni MHH Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Hydrocarbon</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Holdings Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Middle East Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Exploration</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(Middle East) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Mitre Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Petroleum Mitre Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni MOG Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Oil &amp; Gas Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Morocco BV (ex Lasmo</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Overseas Nederland (II) BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Muara Bakau BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Nederland BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Nederland BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Neptune Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Neptune Oil Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Nimex Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Nimex Resources Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Norge AS</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Norway</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Norsk Agip AS)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni North Africa BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip North Africa BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Oil Algeria Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Oil (Algeria) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Oil do Brasil SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Brazil</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Oil do Brasil SA)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Oil &amp; Gas Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Oil &amp; Gas Inc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Oil Holdings BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Holdings BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Oil US Llc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Oil US Llc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Overseas Holdings Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Overseas Holding Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Pakistan Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Oil Pakistan Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Pakistan M Ltd S&#224;rl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Luxembourg</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (MP) Ltd Sarl)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Papalang Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Papalang Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Petroleum BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Petroleum BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Petroleum Co Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Petroleum Co Inc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Petroleum Exploration Co Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Petroleum Exploration Co Inc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Popodi Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Popodi Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Rapak Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Rapak Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Resources Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Monument Resources Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Securities Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Securities Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Sesulu Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Sesulu Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni TNS Holdings Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (TNS) Holdings Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni TNS Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (TNS) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Trading BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Trading BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Trading Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Trading Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Trinidad and Tobago</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Exploration BV</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Trinidad and Tobago</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Exploration BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Trinidad and Tobago Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Trinidad</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Trinidad and Tobago Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni TTO Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (TTO) Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Tunisia Bek BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Tunisia BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Tunisia BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Tunisia BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni UFL Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (UFAIL) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni UHL Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (UHL) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni UKCS Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip (UKCS) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni UK Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip (UK) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni ULT Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (ULT) Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni ULX Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (ULX) Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni USA Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo (USA) Inc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni US Operating Co Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Venezuela BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Venezuela BV)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Ventures Plc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Ventures Plc)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Ieoc Exploration BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Ieoc Production BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo (Cumi-Cumi) Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo Grand Maghreb Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo Insurance Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo Oil Development</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Canada</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>(Canada) Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo Sanga Sanga Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Bermuda</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo (UPET) Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Canada</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lasmo (WP) Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lukagip Midstream BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lukagip NV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Nigerian Agip Exploration Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Nigerian Agip Oil Co Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Pennant Insurance Co Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Bermuda</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Secab Niugini Pty Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Papua Nuova Guinea</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Gas &amp; Power</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Acquedotto di Savona SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>67.04</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Acquedotto Vesuviano SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Compagnia Napoletana</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.68</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>di Illuminazione e Scaldamento</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>col Gas SpA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Energia Sicilia Srl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Acqua Campania SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>49.04</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EniPower SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EniPower Trading SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EniPower Trasmissione SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Fiorentina Gas Clienti SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Fiorentina Gas SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>51.03</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>GNL Italia SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>59.12</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Greenstream SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>75.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Italgas Hellas SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Italgas Pi&#249; SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>LNG Shipping SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Napoletana Gas Clienti SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.68</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Partecipazioni Industriali SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Slim Sicilia SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snam Rete Gas SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>59.12</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Societ&#224; Azionaria per la</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>67.04</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Condotta di Acque Potabili</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Societ&#224; EniPower Ferrara Srl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>51.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Societ&#224; Italiana per il gas pA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Adriaplin Doo</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Slovenia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Distribuidora de Gas Cuyana SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Argentina</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>45.59</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Gas &amp; Power LNG Australia BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Gas Trading Europe BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Lasmo Overseas</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Nederland (VII) BV) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni G &amp; P Trading BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Gas Brasiliano Distribuidora SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Brazil</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Greenstream BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>75.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Inversora de Gas Cuyana SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Argentina</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>75.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Scogat - Soci&#233;t&#233; pour la Construction</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Tunisia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>du Gazoduc Transtunisien SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sergaz - Soci&#233;t&#233; de Service</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Tunisia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>66.67</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>du Gazoduc Transtunisien SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Tigaz Rt Tiszantuli</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Hungary</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>49.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Tigaz 2 F&#246;ldg&#225;s Eloszt&#243; &#233;s</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Hungary</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>44.65</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Trans Tunisian Pipeline Co Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Refining &amp; Marketing</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>AgipFuel SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Atriplex Srl)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>AgipRete SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Reful Srl)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Big Bon Distribuzione SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Costiero Gas Livorno SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>65.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Ecofuel SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Portugal Investment SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Intermode Trasporti Logistica</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Integrata SpA </B>(ex Atriplex </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Servizi Logistici e Trasporti Srl) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Italiana Petroli SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Italiana Petroli Srl)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petrolig Srl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>70.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petroven Srl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>68.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Praoil Oleodotti Italiani SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Raffineria di Gela SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Raffineria di Gela Srl)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Austria GmbH</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Austria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Austria Aktiengesellschaft)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Benelux BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Bratislava Sro</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Slovakia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Ceska Republika Sro</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Czech Republic</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Ceska Republika Sro)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Deutschland GmbH</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Germany</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Agip Deutschland AG)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip do Brasil SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Brazil</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Ecuador SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Ecuador</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Espa&#241;a SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Spain</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Hungaria Rt</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Hungary</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.41</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Lubricantes SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Argentina</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Lubricants (Pty) Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>South Africa</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Pannonia Kft</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Hungary</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.41</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Portugal - Combustiveis SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Romania SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Romania</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.97</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Schmiertechnik GmbH</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Germany</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Slovenija Doo</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Slovenia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip Slovensko Sro</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Slovakia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agip (Suisse) SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Switzerland</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>American Agip Co Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Esain SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Ecuador</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>SDCL - Soci&#233;t&#233; de Distribution</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>de Carburants et Lubrifiants SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Petrochemicals </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Dunastyr Polystyrene</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Hungary</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Manufacturing Co Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa Americas Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa Benelux SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Belgium</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa Distribution</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>France SAS</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Switzerland</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Distribution SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa Elastom&#232;res</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France SA</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa France Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa GmbH</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Germany</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Germany</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Handelsgesellschaft mbH</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex EniChem Deutschland GmbH)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa Ib&#233;rica SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Spain</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa Pacific Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>China</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Polimeri Europa UK Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Oilfield Services Construction and Engineering</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Oilfield Services and Construction</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Bos Italia Srl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Energy Maintenance Services SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>71.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Intermare Sarda SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Rosbos Scrl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Energy International SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sonsub SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Boscongo SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>South Africa</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Bouygues Offshore Congo SA)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Bos Corp. Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Bos Shelf Ltd. Society</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Azerbaijan</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Bouygues Offshore Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Bouygues Offshore - UIE Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Camom Gesellschaft</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Germany</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.09</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>fur Instandhaltung</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>und Montagen GmbH</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Camom SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Canalisations. Tuyauteries</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Soud&#233;es SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Conception Maintenance</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.97</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petrochimique de l&#146;Ouest</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Csmi Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Dalia Floater Angola Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>11.92</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Delong Hersent - Estudos.</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Constru&#231;&#245;es Maritimas</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>e Participa&#231;&#245;es. Unipessoal Lda</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Doris USA Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EMC Netherlands BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Entreprise Nouvelle Marcellin SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Er Sai Caspian Contractor Llc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Kazakhstan</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>ERS - Equipment Rental</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>&amp; Services BV</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eurig GmbH &amp; Co Kg</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Germany</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>European Marine Contractors Llc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>75.06</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>European Marine Contractors Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>75.06</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>European Marine Investments Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>94.30</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>FPSO Firenze Produ&#231;ao de</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petrolio Lda</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>FPSO Mystras (Nigeria) Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>FPSO Mystras Produ&#231;ao de</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petroleo Lda</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Global Petroprojects</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Switzerland</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Services AG SA Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Guangdong Contractor Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>25.80</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Hazira Cryogenic Engineering</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>India</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>23.59</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>&amp; Construction Management</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Private Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Hazira Marine Engineering</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>India</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>&amp; Construction Management</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Private Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Katran-k Ltd Liability Co</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Moscow</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>International Development</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>India</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Lipardiz Constru&#231;ao de Estruturas</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Maritimas Lda</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Process and Engineering Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Moss Maritime AS</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Norway</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Moss Maritime Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Moss Offshore AS</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Norway</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Nigerian Services</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>&amp; Supply Co Ltd</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Offshore Design Engineering Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petrex SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Peru</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petro-Marine/BCI</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Engineering Inc</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Petromar Lda</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Angola</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>30.10</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>PT Bouygues Offshore</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Indonesia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Indonesia Ll</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>PT Saipem Indonesia</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Indonesia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>PT Sofresid Indonesia Ll</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Indonesia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saibos Akogep Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>30.10</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saibos Constru&#231;&#245;es</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Maritimas Lda</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saibos Fze</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Dubai</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saibos SAS</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Saibos (Services) SAS)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipar Drilling Co BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Aban Drilling Co</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Private Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>India</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Algerie SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Algeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.98</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Bos-Sofresid-Algerie SpA)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Asia Sdn Bhd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Malaysia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Contracting (Nigeria) Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>41.71</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem do Brasil Servi&#231;&#245;s</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Brazil</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>de Petroleo Ltda</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Saipem do Brasil Ltda)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Energy International Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Holding France SAS</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem International BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Luxembourg SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Luxembourg</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem (Malaysia) Sdn Bhd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Malaysia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>17.20</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Mediterranean</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Croatia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Services Llc</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem (Nigeria) Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Nigeria</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>38.45</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem - Perfura&#231;&#245;es</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>e Constru&#231;&#245;es Petroliferas</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>America do Sul Lda</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem (Portugal) Com&#233;rcio</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Maritimo. Sociedade Unipessoal Lda</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem (Portugal) - Gest&#227;o</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>de Participa&#231;&#245;es SGPS</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sociedade Unipessoal SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem Singapore Pte Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Singapore</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Bouygues Offshore</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Singapore Private Ltd)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saipem UK Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>55.83</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>SAIR Costrucoes Mecanicas</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>de Estruturas Maritimas Lda</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Portugal</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>36.98</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sas Port de Tanger SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Semplificata (Francia)</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Saudi Arabian Saipem Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Saudi Arabia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>25.80</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>SB Construction and Maritime</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Services BV</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Services et Equipements</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.89</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Gaziers et Petroliers SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Servicios de Costru&#231;iones</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Caucedos Sarl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Rep. Dominicana</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.37</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Soci&#233;t&#233; de Construction</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.89</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>d&#146;Oleoducs Snc</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Soci&#233;t&#233; d&#146;Etudes d&#146;Oleoducs Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Soci&#233;t&#233; Nouvelle Technigaz SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.98</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Soci&#233;t&#233; pour la Realisation du Port</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>de Tanger Mediterran&#233;e Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Marocco</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>14.38</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofresid Aquitaine SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.80</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in liquidation)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofresid Engineering SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ex Sofresid Ouest SA)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofresid Group SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofresid Nord Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in liquidation)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofresid Provence Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(in liquidation)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofresid SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sonsub A/S</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Norway</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sonsub Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sonsub International Pty Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Australia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sonsub Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Star Gulf Free Zone Co</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Arab Emirates</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>43.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Starstroi Ltd Liability Co</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Fed. Russia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Stts Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>25.80</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Studeurop SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>42.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>TBE Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Egypt</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>30.08</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Tss Dalia Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>11.82</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Upstream Contructors</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>International Fzco</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Arab Emirates</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>21.50</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Engineering</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Aquater SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>ASG Scarl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>55.34</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Consorsio Eni per l&#146;Alta Velocit&#224;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Consorzio Snamprogetti Abb Lg</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Chemicals</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Modena Scarl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>59.33</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Rodano Consortile Scarl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>53.57</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Services SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Sud SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sp &#150; Tkp Fertilizer Srl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Andromeda Consultoria Tecnica</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Brazil</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>e Representa&#231;&#245;es Ltda</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>CMS&amp;A Wll</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Qatar</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>20.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Rpco Enterprises Lts</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Cipro</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti France S&#224;rl</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>United Kingdom</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Lummus Gas Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Malta</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Management</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Switzerland</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Services SA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Netherlands BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti Saudi Arabia Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Saudi Arabia</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>74.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Snamprogetti USA Inc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>USA</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Spf &#150; Tkp Omifpro Snc</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>France</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>50.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Other Activities</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Agenzia Giornalistica Italia SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Ambiente SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Corporate University SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EniData SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EniTecnologie SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Ing. Luigi Conti Vecchi SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Servizi Aerei SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Servizi Turistici Grantour SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sieco SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>90.87</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Syndial SpA - Attivit&#224;</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.99</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Diversificate </B>(ex EniChem SpA) </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>57.15</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Tecnomare SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Corporate and financial companies</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Societ&#224; Finanziaria Eni SpA Enifin</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Padana Assicurazioni SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.73</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Serleasing SpA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.61</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Societ&#224; Finanziamenti</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.61</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Idrocarburi - Sofid - SpA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Sofidsim - Societ&#224;</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Italy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>99.61</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>di Intermediazione Mobiliare SpA</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni Coordination Center SA</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Belgium</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni International Bank Ltd</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Bahamas</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Eni International BV</B> </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Netherlands</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>100.00</FONT></TD></TR>
</TABLE>


<P STYLE="page-break-before:always">


<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=1>Certifications as
separate documents filed as exhibits</FONT></P>

<P ALIGN=right><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EXHIBIT 12.1</B> </FONT></P>

<P ALIGN=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Certification</B> </FONT></P>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>I, Vittorio Mincato,
certify that:</FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="2" CELLSPACING="2">
<TR VALIGN="TOP">
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="90%" ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">I have reviewed this annual report on Form 20-F of Eni SpA;</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">2.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="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;</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">3.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">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;</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">4.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">The
           company&#146;s other  certifying  officers 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)) for the company
           and have:</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(a)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">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;</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Evaluated
           the effectiveness of the company&#146;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</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(c)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Disclosed
           in this report any change in the company&#146;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&#146;s internal
                  control over financial reporting; and</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">5.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">The
           company&#146;s other certifying  officer and I have disclosed,  based on our most recent evaluation of internal
             control over financial reporting,  to the company&#146;s auditors and the audit committee of the company&#146;s
           board of directors (or persons performing the equivalent functions):</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(a)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">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&#146;s  ability to
                    record, process, summarize and report financial information;
           and</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Any
           fraud, whether or not material, that involves management or other
           employees who have a significant role in the company&#146;s internal
           control over financial reporting.</FONT></div></TD></TR>
</TABLE>
<BR><BR>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Date: June 25, 2004</FONT></P>



<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/VITTORIO MINCATO</FONT><hr size=1></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Vittorio Mincato</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Title: Managing Director and Chief Executive Officer</FONT></TD></TR>
</TABLE>



<P STYLE="page-break-before:always">


<P ALIGN=right><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EXHIBIT 12.2</B> </FONT></P>

<P ALIGN=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Certification</B> </FONT></P>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>I, Roberto Jaquinto,
certify that:</FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="2" CELLSPACING="2">
<TR VALIGN="TOP">
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">1.</FONT></TD>
     <TD WIDTH="5%" ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="90%" ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">I have reviewed this annual report on Form 20-F of Eni SpA;</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">2.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="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; </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">3.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">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; </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">4.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">The
           company&#146;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)) for the company
           and have: </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(a)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">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; </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Evaluated
           the effectiveness of the company&#146;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 </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(c)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Disclosed
           in this report any change in the company&#146;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&#146;s internal
                  control over financial reporting; and </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">5.</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">The
           company&#146;s other certifying officer and I have disclosed, based on our most recent evaluation of internal
             control over financial reporting, to the company&#146;s auditors and the audit committee of the company&#146;s
           board of directors (or persons performing the equivalent functions): </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(a)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">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&#146;s ability to
                    record, process, summarize and report financial information;
           and </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT">&nbsp;</TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">(b)</FONT></TD>
     <TD ALIGN="LEFT"><div align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Any
           fraud, whether or not material, that involves management or other
           employees who have a significant role in the company&#146;s internal
           control over financial reporting. </FONT></div></TD></TR>
</TABLE>


<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Date: June 25, 2004</FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/ROBERTO JAQUINTO</FONT><hr size=1></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">ROBERTO JAQUINTO</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Title: The GROUP SENIOR VICE PRESIDENT For ADMINISTRATION</FONT></TD></TR>
</TABLE>



<P STYLE="page-break-before:always">


<P ALIGN=right><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EXHIBIT 13.1</B> </FONT></P>

<P ALIGN=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Certification Pursuant
to 18 U.S.C. Section 1350</B> </FONT></P>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>For purposes of 18
U.S.C. Section 1350, the undersigned officer of Eni SpA, a company incorporated under the
laws of Italy (the &#147;Company&#148;), hereby certifies, to such officer&#146;s knowledge, that:</FONT></P>

<blockquote>
<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(i) the Annual Report
on Form 20-F of the Company for the year ended December 31, 2003 (the &#147;Report&#148;) fully
complies with the      requirements of section 13(a) or 15(d) as applicable, of the
Securities Exchange Act of 1934; and</FONT></P>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ii) the information
contained in the Report fairly presents, in all material respects, the financial
condition and results of      operations of the Company.</FONT></P>
</blockquote>


<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Date: June 25, 2004</FONT></P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/VITTORIO MINCATO</FONT><hr size=1></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Vittorio Mincato</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Title: Managing Director and Chief Executive Officer</FONT></TD></TR>
</TABLE>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>The foregoing
certification is not deemed filed for purpose of Section 18 of the Exchange Act and not
incorporated by reference with any filing under the Securities Act.  </FONT></P>

<P STYLE="page-break-before:always">



<P ALIGN=right><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>EXHIBIT 13.2</B> </FONT></P>

<P ALIGN=center><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2"><B>Certification Pursuant
to 18 U.S.C. Section 1350</B> </FONT></P>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>For purposes of 18
U.S.C. Section 1350, the undersigned officer of Eni SpA, a company incorporated under the
laws of Italy (the &#147;Company&#148;), hereby certifies, to such officer&#146;s knowledge, that:</FONT></P>

<blockquote>
  <p align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>the Annual Report on
    Form 20-F of the Company for the year ended December 31, 2003 (the &#147;Report&#148;) fully
    complies with the      requirements of section 13(a) or 15(d) as applicable, of the
    Securities Exchange Act of 1934; and</FONT></p>
  <p align="justify"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>(ii) the information
    contained in the Report fairly presents, in all material respects, the financial
    condition and results of      operations of the Company.</FONT></p>
</blockquote>
<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>Date: June 25, 2004</FONT></P>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH="60%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD WIDTH="40%"><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">/s/ROBERTO JAQUINTO</FONT><hr size=1></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">ROBERTO JAQUINTO</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">&nbsp;</FONT></TD>
     <TD><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE="2">Title: The GROUP SENIOR VICE PRESIDENT For ADMINISTRATION</FONT></TD></TR>
</TABLE>

<P ALIGN=justify><FONT FACE="Arial, Helvetica, Sans-Serif" SIZE=2>The foregoing
certification is not deemed filed for purpose of Section 18 of the Exchange Act and not
incorporated by reference with any filing under the Securities Act.</FONT></P>









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<P STYLE='page-break-before:always'>



<!-- IAR #1 -->




<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>REPORT OF INDEPENDENT
REGISTERED PUBLIC ACCOUNTING FIRM</B> </FONT> </P>

<!-- MARKER FORMAT-SHEET="Head Left" FSL="Default" -->

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To the Shareholders of
<BR>Eni S.p.A. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>We have audited the accompanying
consolidated balance sheets of Eni S.p.A. and its subsidiaries as of December 31, 2003 and
2002, and the related consolidated statements of income, changes in shareholders&#146;
equity, and cash flows for each of the three years in the period ended December 31, 2003,
all expressed in euro. These financial statements are the responsibility of the
Company&#146;s management. Our responsibility is to express an opinion on these financial
statements based on our audits. We did not audit the financial statements of certain
subsidiaries, which statements, in the aggregate, reflect total assets of 24 and 21
percent of the related consolidated totals as of December 31, 2003 and 2002, respectively,
and total revenues of 15, 13 and 11 percent of the related consolidated totals for the
years ended December 31, 2003, 2002 and 2001, respectively. Those statements were audited
by other auditors whose reports thereon have been furnished to us, and our opinion
expressed herein, insofar as it relates to the amounts included for those entities, is
based solely on the reports of the other auditors. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>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 audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits and the reports of the other auditors
provide a reasonable basis for our opinion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In our opinion, based on our audits
and the reports of other auditors, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Eni S.p.A. and its
subsidiaries at December 31, 2003 and 2002, and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 2003, in
conformity with the Italian law governing consolidated financial statements and generally
accepted accounting principles in Italy. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The accounting principles referred to
above vary in certain significant respects from accounting principles generally accepted
in the United States. Information relating to the nature and effect of such differences is
presented in Note 28 to the consolidated financial statements. </FONT></P>

<BR>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PricewaterhouseCoopers S.p.A. </FONT></P>



<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rome, April 26, 2004 </FONT></P>


<!-- IAR #2 -->
<P STYLE='page-break-before:always'>


<a name="f1"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>

<p align=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory consolidated financial statements</B></FONT></P>

<p align=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the Stockholders<BR>
of Saipem S.p.A.
</B></FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory consolidated balance sheets of Saipem S.p.A. and subsidiaries (the "Group")
as of December 31, 2003, and 2002, and the related consolidated statements of income, changes in shareholders' equity
and cash flows for the years in the three-year period ended December 31, 2003, expressed in millions of Euro.
These financial statements (not presented separately herein) are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial
statements of certain subsidiaries, which reflect total assets of 4% as of December 31, 2003 and 2002 and revenues
of 7% and 13% of the related consolidated totals for each of the years ended December 31, 2003 and 2002 respectively.
Those statements were audited by other auditors whose reports have been furnished to us and our opinion, insofar
as it relates to the amounts included for these subsidiaries is based solely on the reports of the other auditors.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits and the reports of other auditors provide a reasonable basis
for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, based on our audits and the reports of other auditors, the Italian statutory
 consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Saipem S.p.A. and subsidiaries as of December 31,
 2003, the consolidated financial position of Saipem S.p.A. and subsidiaries as of December 31, 2003 and 2002, and
the consolidated results of their operations and their cash flows for each of the years in the three-year period
ended operations and their cash flows for each of the years in the three-year period ended December 31, 2003,
in conformity with general accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
April 6, 2004
<BR><BR>
/s/ Reconta Ernst &amp; Young
<BR><BR>
Milan, Italy
</FONT></P>





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<P STYLE='page-break-before:always'>



<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
INDEPENDENT AUDITORS&#146; REPORT<BR>
Italian statutory financial statements</B></FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
To the Stockholders<BR>
of Italgas &#150; Societ&#224; Italiana per il Gas p.A.
</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We have audited the Italian statutory balance sheet of Italgas &#150; Societ&#224; Italiana per il Gas p.A. as of
December 31, 2003, and the related statement of income, changes in shareholders&#146; equity and cash flows for
the year then ended. These financial statements (not presented separately herein) are the responsibility
of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements
based on our audits. We did not audit the financial statements of certain subsidiaries which represent 12%
of total assets as of December 31, 2003. Those statements were audited by other auditors whose reports
have been furnished to us and our opinion, insofar as it relates to the amounts included for these
subsidiaries, is based solely on the reports of the others auditors.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements presentation. We believe that our audit and the reports of
others auditors provide a reasonable basis for our opinion.
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In our opinion, based on our audit and on the reports of other auditors, the Italian statutory financial
statements referred to above present fairly, in all material respects, the financial position of Italgas &#150;
Societ&#224; Italiana per il Gas p.A. as of December 31, 2003, the result of its operations and its cash flows
for the year ended, in conformity with generally accepted accounting principles in Italy.
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Turin, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
April 6, 2004
</FONT></P>

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<P STYLE='page-break-before:always'>

<p align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
INDEPENDENT AUDITOR'S REPORT
<BR>Italian statutory consolidated financial statements</B> </FONT></p>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the Stockholders<BR>
of Italgas-Societ&#224; Italiana per il Gas p.A.
</B> </FONT></p>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory consolidated balance sheet of of Italgas-Societ&#224; Italiana per il Gas p.A.
and subsidiaries (the "Group")
as of December 31, 2002 and 2001, and the related consolidated statement of income, changes in shareholders'
equity and cash flows for each of the years in the two-year period ended December 31, 2002.
These financial statements (not presented separately herein) are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based on our audits. We did not audit
the financial statements of certain subsidiaries which statements represent assets constituting respectively
16% and 19% of the consolidated assets as of December 31, 2002 and 2001. Those statements were audited by other
auditors whose reports have been furnished to us and our opinion, insofar as it relates to the amounts included
for these subsidiaries, is based solely on the reports of the other auditors.
</FONT></p>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audits in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits and the reports of other auditors provide a reasonable basis for our opinion.
</FONT></p>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, based on our audits and the reports of other auditors, the Italian statutory consolidated
financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Italgas-Societ&#224; Italiana per il Gas p.A. and subsidiaries as of December 31,
2002 and 2001, and the consolidated results of their operations and their cash flows for each of the years
in the two-year period ended December 31, 2002, in conformity with the accounting principles governing the
presentation of consolidated statutory financial statements in Italy.
</FONT></p>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Turin, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
April 3, 2003
</FONT></p>

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<P STYLE='page-break-before:always'>




<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
                                                     INDEPENDENT AUDITORS&#146; REPORT<BR>
                                               Slovenian statutory financial statements
</B></FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
To the Stockholders<BR>
of ADRIAPLIN  d.o.o.
</B></FONT></P>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the  Slovenian  statutory  balance sheet of ADRIAPLIN  d.o.o.  as of December 31, 2003,  and the related  statements of
income for the year ended December 31, 2003. These financial  statements (not presented  separately  herein) are the  responsibility of
the Company&#146;s management. Our responsibility is to express an opinion on these financial statements based on our audit.
</FONT></P>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with  International  Standards on Auditing and with the auditing  standards  generally accepted in
the United States of America.  Those standards require that we plan and perform the audit to obtain reasonable  assurance about whether
the financial  statements are free of material  misstatement.  An audit includes  examining,  on a test basis,  evidence supporting the
amounts and disclosures in the financial  statements.  An audit also includes assessing the accounting  principles used and significant
estimates made by management,  as well as evaluating the overall financial statement  presentation.  We believe that our audit provides
a reasonable basis for our opinion.
</FONT></P>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion,  the  Slovenian  statutory  financial  statements  referred to above  present  fairly,  in all material  respects,  the
financial  position of ADRIAPLIN  d.o.o.  as of December 31, 2003,  and the result of its  operations  for the year ended  December 31,
2003, in conformity with generally accepted accounting principles in Slovenia.
</FONT></P>

<p align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Ljubljana, Slovenia<BR><BR>
March 12, 2004<BR><BR>
Ernst &amp; Young
</FONT></P>

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<P STYLE='page-break-before:always'>


<p align=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory financial statements</B></FONT></P>


<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the Stockholders<BR>
of Compagnia Napoletana di Illuminazione e Scaldamento Col Gas S.p.A.
</B></FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory balance sheet of Compagnia Napoletana di Illuminazione
 e Scaldamento Col Gas S.p.A. as of December 31, 2003,
and the related statement of income, changes in shareholders' equity and cash flows for the
year then ended. These financial statements (not presented separately herein) are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, the Italian statutory financial statements referred to above present fairly, in all material
respects, the financial position of Compagnia Napoletana di Illuminazione e Scaldamento Col Gas S.p.A.
 as of December 31, 2003, the result of its operations
and its cash flows for the year then ended, in conformity with generally accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Naples, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
March 31, 2004
</FONT></P>


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<P STYLE='page-break-before:always'>


<!-- MARKER FORMAT-SHEET="Times Center Bold" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
REPORT OF INDEPENDENT AUDITORS</B></FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the stockholders of<BR>
Eni Portugal Investment S.p.A.</B> </FONT></P>

<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD WIDTH=5% VALIGN=TOP><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>

     <TD WIDTH=95% VALIGN=TOP>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We have audited the balance sheets of Eni Portugal Investment S.p.A. (an Italian  corporation)
as of December 31, 2002 and 2003, and the related  consolidated  statements of income,  changes
in shareholders'  equity and cash flows
for each of the  periods in the  three-year  period  ended  December  31, 2003  expressed
  in Euro (which financial statements are not included herein).  These financial statements
 are the responsibility of the Company&#146;s  management.  Our responsibility is to express an
opinion on these financial statements based on our audits.
</FONT></P>
</TD></TR>

<TR VALIGN="TOP">
     <TD COLSPAN=2>&nbsp;</TD></TR>

<TR VALIGN="TOP">
     <TD WIDTH=5% VALIGN=TOP><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>

     <TD WIDTH=95% VALIGN=TOP>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We conducted our audits in accordance  with auditing  standards  generally  accepted
 in the United States of America.  Those  standards
require that we plan and perform the audit to obtain reasonable  assurance about whether
 the financial  statements are free of material
misstatement.  An audit  includes  examining  on a test  basis,  evidence  supporting
the amounts and  disclosures  in the  financial
statements.  An audit also includes assessing the accounting principles used and significant
estimates made by management,  as well as
evaluating the overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
</FONT></P></TD></TR>


<TR VALIGN="TOP">
     <TD COLSPAN=2>&nbsp;</TD></TR>

<TR VALIGN="TOP">
     <TD WIDTH=5% VALIGN=TOP><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
     <TD WIDTH=95% VALIGN=TOP>
        <P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        In our  opinion,  based on our audits,  the financial  statements  referred to above
        present  fairly,  in all material respects,  the  financial  position of Eni Portugal Investment S.p.A.
         as of December 31, 2002 and 2003 and the results of their
        operations  and their cash flows for each of the periods in the  three-year  period ended  December 31, 2003,
        in conformity  with  generally accepted accounting
        principles in Italy.
        </FONT></P></TD></TR>
</TABLE>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
/s/ Deloitte Touche
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Rome, Italy
<BR><BR>
May 7, 2004
</FONT></P>






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<P STYLE='page-break-before:always'>

<p align=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory financial statements</B>
</FONT></P>

<p align=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>To the Stockholders<BR>
of Fiorentinagas S.p.A.</B>
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory balance sheet of Fiorentinagas S.p.A. as of December 31, 2003,
and the related statement of income, changes in shareholders' equity and cash flows for the
year then ended. These financial statements (not presented separately herein) are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, the Italian statutory financial statements referred to above present fairly, in all material
respects, the financial position of Fiorentinagas S.p.A. as of December 31, 2003, the result of its operations
and its cash flows for the year then ended, in conformity with generally accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Florence, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
April 8, 2004
</FONT></P>

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<P STYLE='page-break-before:always'>


<p align=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory financial statements</B></FONT></P>

<p align=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>To the Stockholders<BR>
of Fiorentinagas Clienti S.p.A.</B></FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory balance sheet of Fiorentinagas Clienti S.p.A. as of December 31, 2003,
and the related statement of income, changes in shareholders' equity and cash flows for the
year then ended. These financial statements (not presented separately herein) are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, the Italian statutory financial statements referred to above present fairly, in all material
respects, the financial position of Fiorentinagas Clienti S.p.A. as of December 31, 2003, the result of its operations
and its cash flows for the year then ended, in conformity with generally accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Florence, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
April 8, 2004
</FONT></P>



<!-- IAR #12 -->
<P STYLE='page-break-before:always'>


<p align=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory financial statements
</B></FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the Stockholders<BR>
of Italgas Pi&#249; S.p.A.
</B></FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory balance sheet of Italgas Pi&#249; S.p.A. as of December 31, 2003,
and the related statement of income, changes in shareholders' equity and cash flows for the
year then ended. These financial statements (not presented separately herein) are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, the Italian statutory financial statements referred to above present fairly, in all material
respects, the financial position of Italgas Pi&#249; S.p.A. as of December 31, 2003, the result of its operations
and its cash flows for the year then ended, in conformity with generally accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Turin, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
April 5, 2004
</FONT></P>


<!-- IAR #13 -->
<P STYLE='page-break-before:always'>


<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
INDEPENDENT AUDITORS&#146; REPORT<BR>
Hungarian statutory financial statements</B></FONT></P>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
To the Stockholders<BR>
of Mol-G&#225;z Kereskedelmi Kft.
</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We have audited the Hungarian statutory balance sheet of Mol-G&#225;z Kereskedelmi Kft. as of
December 31, 2003, which shows a balance total of 000HUF 15,553,956 and a loss of the
year of 000HUF 208,007, and the related statement of income for the year ended December 31, 2003.
These financial statements (not presented separately herein) are the responsibility
of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements
based on our audits.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We conducted our audit in accordance with the Hungarian statutory auditing standards and the
 auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In our opinion, the Hungarian statutory financial
statements referred to above present fairly, in all material respects, the
financial position of Mol-G&#225;z Kereskedelmi Kft.
 as of December 31, 2003, and the result of its operations for the year ended December 31, 2003,
in conformity with generally accepted accounting principles in Hungary.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Without qualifying our opinion, we draw the attention of the shareholders to the fact that the accompanying
annual financial statements for 2003 indicate a significant operating loss and loss for the year and that
current liabilities and accrued expenses &amp; deferred income exceed current assets and prepaid expenses &amp; accrued
income by THUF 4,190,487. In order to ensure the Company's ability to continue operations on a going concern
basis, the Company has developed a plan as set out on page 65 of the notes to the financial statements.
The validity of this basis depends on TIG&#193;Z Rt continuing its support by providing adequate funds or on other
third party financing arrangements becoming available. In the absence of such support, there is a significant
risk that the Company will not be able to continue operating on a going concern basis. The accompanying financial
statements have been drawn up based on the going concern assumption and do not contain the effects of adjustments
which may become necessary should this assumption become invalid.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
/s/ Ernst &amp; Young Kft.
<BR>
Budapest, Hungary
<BR>
February 13, 2004
</FONT></P>


<!-- IAR #14 -->
<P STYLE='page-break-before:always'>

<p align=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory financial statements</B>
</FONT></P>

<p align=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>To the Stockholders<BR>
of Napoletanagas Clienti S.p.A.</B>
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory balance sheet of Napoletanagas Clienti S.p.A. as of December 31, 2003,
and the related statement of income, changes in shareholders' equity and cash flows for the
year then ended. These financial statements (not presented separately herein) are the responsibility of the
Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, the Italian statutory financial statements referred to above present fairly, in all material
respects, the financial position of Napoletanagas Clienti S.p.A. as of December 31, 2003, the result of its operations
and its cash flows for the year then ended, in conformity with generally accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Naples, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
March 31, 2004
</FONT></P>

<!-- IAR #15 -->
<P STYLE='page-break-before:always'>




<!-- MARKER FORMAT-SHEET="Times Center Bold" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
REPORT OF INDEPENDENT AUDITORS</B></FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the stockholders of<BR>
Snam Rete Gas S.p.A.</B> </FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        We have audited the  consolidated  balance sheets of Snam Rete Gas S.p.A.  (an Italian  corporation) and its subsidiary (the &#147;Company&#148;)
        as of December 31, 2002 and 2003, and the related  consolidated  statements of income,  changes in shareholders&#146;  equity and cash flows
        for each of the  periods in the  three-year  period  ended  December  31, 2003  expressed  in euro  (which  consolidated  financial
        statements are not enclosed herein). Snam Rate Gas S.p.A. and its subsidiary GNL Italia S.p.A.,  incorporated  respectively on November
        15, 2000 and on July 27, 2001 and operating  since the  contribution  by Snam S.p.A.  (now Eni S.p.A. &#150; Divisione Gas &amp; Power),  of the
        business related to natural gas  transportation,  dispatching,  and regasification  services,  have ended the first financial period on
        December 31, 2001. These financial statements are the responsibility of the Company&#146;s  management.  Our responsibility is to express an
        opinion on these financial statements based on our audits.
        </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        We concluded our audits in accordance  with auditing  standards  generally  accepted in the United States of America.  Those  standards
        require that we plan and perform the audit to obtain reasonable  assurance about whether the financial  statements are free of material
        misstatement.  Our audit  includes  examining  on a test  basis,  evidence  supporting  the amounts and  disclosures  in the  financial
        statements.  An audit also includes assessing the accounting principles used and significant  estimates made by management,  as well as
        evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
        </FONT></P>


        <P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
        In our  opinion,  based on our audits,  the  consolidated  financial  statements  referred to above  present  fairly,  in all material
        respects,  the  financial  position of Snam Rete Gas S.p.A.  and  subsidiary  as of December 31, 2002 and 2003 and the results of their
        operations  and their cash flows for each of the periods in the  three-year  period ended  December 31, 2003,  in conformity  with  accounting
        principles generally accepted in Italy.
        </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
/s/ Deloitte Touche
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Milan, Italy
<BR><BR>
April 5, 2004
</FONT></P>



<!-- IAR #16 -->
<P STYLE='page-break-before:always'>


<p align=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>INDEPENDENT AUDITOR'S REPORT<BR>
Italian statutory consolidated financial statements</B></FONT></P>

<p align=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>
To the Stockholders<BR>
of Societ&#224; Azionaria per la Condotta di Acque Potabili p.A. ("Acque Potabili S.p.A.")
</B></FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We have audited the Italian statutory consolidated balance sheet of Acque Potabili S.p.A. and subsidiaries
as of December 31, 2003, and the related consolidated statement of income, changes in shareholders' equity
and cash flows for the year then ended. These financial statements (not presented separately herein) are
 the responsibility of the Company's management. Our responsibility is to express an opinion on these financial
 statements based on our audits.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
In our opinion, the Italian statutory consolidated financial statements referred to above present fairly, in all material
respects, the consolidated financial position of Acque Potabili S.p.A. and subsidiaries as of December 31,
 2003, the consolidated result of their operations and their cash flows for the year then ended, in conformity with
 generally accepted accounting principles in Italy.
</FONT></P>

<p align=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Tuin, Italy
<BR><BR>
/s/ Reconta Ernst &amp; Young S.p.A.
<BR><BR>
April 6, 2004
</FONT></P>






<P STYLE='page-break-before:always'>
<!-- IAR #17 -->

<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
INDEPENDENT AUDITORS&#146; REPORT<BR>
Hungarian statutory financial statements</B></FONT></P>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>
To the Stockholders<BR>
of Tigaz Rt.
</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We have audited the Hungarian statutory balance sheet of Tigaz Rt. as of
December 31, 2003, which shows a balance total of 000HUF 80,414,801 and a profit after dividend for the
year of 000HUF 1,790,826, and the related statement of income for the year ended December 31, 2003.

These financial statements (not presented separately herein) are the responsibility
of the Company&#146;s management. Our responsibility is to express an opinion on these financial statements
based on our audits.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
We conducted our audit in accordance with the Hungarian statutory auditing standards and the
 auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statements presentation. We believe that our audit provides a
reasonable basis for our opinion.
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In our opinion, the Hungarian statutory financial
statements referred to above present fairly, in all material respects, the financial position of Tigaz Rt.
 as of December 31, 2003, the result of its operations for the year ended December 31, 2003,
in conformity with generally accepted accounting principles in Hungary.
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
/s/ Ernst &amp; Young Kft
<BR>
Budapest, Hungary
<BR>
March 18, 2004
</FONT></P>








<P STYLE='page-break-before:always'>






<a name="f8"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>


<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>balance sheets </B></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=65% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(Amounts stated in million euro) </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Note</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>ASSETS</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Current assets:</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cash and cash equivalent: </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,265&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,623&nbsp; </FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Marketable securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,208&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,277&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Receivables, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,530&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,802&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Inventories, net: </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Crude oil, natural gas and petroleum products</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,821&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,652&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Chemical products</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">622&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">636&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Work in progress on long-term contracts</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">184&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">434&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Other</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">573&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">571&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total inventories </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,200&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,293&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accrued interest and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">573&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">533&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total current assets</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>21,776&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>20,528&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non-current assets:</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets, net of accumulated depreciation, </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33,693&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36,360&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Receivables, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,500&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,395&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,779&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,160&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,175&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,610&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,885&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,283&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total non-current assets</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>44,032&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>46,808&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>TOTAL ASSETS</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>65,808&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>67,336&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Current liabilities:</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Short-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,890&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,428&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Current portion of long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">980&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">490&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trade accounts payable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,537&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,887&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Advances </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,457&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,551&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Taxes payable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,791&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,183&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accrued expenses and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,937&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,841&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total current liabilities</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>21,592&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>21,380&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non-current liabilities:</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,550&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,336&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserve for employee termination indemnities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">507&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">555&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserves for contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,522&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,708&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred and other non-current income tax liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,611&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,442&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accrued expenses and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">675&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">597&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total non-current liabilities</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15,865&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>17,638&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>TOTAL LIABILITIES</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>37,457&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>39,018&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Minority interests</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,094&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,622&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Shareholders&#146; equity:</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital stock 4,002,922,176 fully paid shares nominal value 1 euro each </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4,001,814,026 shares at December 31, 2002) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,002&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,003&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,500&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,272&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Treasury shares </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,838) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,164) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income for the year </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,593&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,585&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total shareholders&#146; equity</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>26,257&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>26,696&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>65,808&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>67,336&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Center" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(The accompanying notes
are an integral part of these consolidated financial statements)</I> </FONT> </P>



<!-- MARKER FORMAT-SHEET="Page Break" FSL="Workstation" -->
<P STYLE='page-break-before:always'>

<a name="f9"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>

<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>statements of income </B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=65% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(Amounts stated in million euro, except per Share and per ADS data) </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Note</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Revenues:</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>14&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48,925&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,922&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,487&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other income and revenues </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,080&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">913&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total revenues</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>49,846&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>49,002&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>52,400&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Operating expenses:</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchases, services and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31,828&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31,893&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34,566&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Payroll and related costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>16&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,851&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,103&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,166&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>17&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,771&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,504&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,151&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Operating income</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,396&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,502&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,517&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Interest and other income (expense):</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Financial expense and exchange differences, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>18&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(259) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(167) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(154) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other income (expense) from investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>19&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(216) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(17) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total interest and other income (expense)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(475)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(124)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(171)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before extraordinary income (expense) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">and income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,378&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,346&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Extraordinary income (expense) <SUP>(a)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>20&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,837&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(29) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Income before income taxes</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>11,758&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,349&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,395&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>21&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,530) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,127) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,241) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Income before minority interest</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,228&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,222&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,154&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Minority interest in net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(477) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(629) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(569) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,751&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,593&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,585&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Earnings per Share (based on the weighted-average
number of shares outstanding for each period)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>22&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.98&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.20&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.48&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Earnings per ADS (based on five shares per ADS)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9.91&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6.00&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7.39&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<BR>
<!-- MARKER FORMAT-SHEET="tabela 5 e 95" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=2>
<TR VALIGN=TOP>
<TD ALIGN=left WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(a) </FONT> </TD>
<TD WIDTH=95%><P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Before
income taxes. </FONT> </P></TD>
</TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Times Center" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(The accompanying notes
are an integral part of these consolidated financial statements)</I> </FONT> </P>


<!-- MARKER FORMAT-SHEET="Page Break" FSL="Workstation" -->
<P STYLE='page-break-before:always'>



<a name="f10"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>statements of cash flows</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(Amounts stated in million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Cash flows from operating activities</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,751&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,593&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,585&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Minority interest in net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">477&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">629&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">569&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation and amortization </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,671&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,962&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,710&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Writedowns, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">571&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">591&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">586&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net change in other reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(323) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">144&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net change in the reserve for employee termination indemnities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gain on disposal of assets, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(170) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(152) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(35) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividend income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(40) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(32) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(22) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(493) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(322) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(197) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">811&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">568&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">574&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unrealized exchange differences </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(65) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(279) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Extraordinary expense (income), net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,837) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(49) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,530&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,127&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,241&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Cash generated from operating income before changes in working capital</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,038&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,057&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,880&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(Increase) decrease: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- inventories </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">179&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(209) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(162) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- accounts receivable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(21) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(925) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(622) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- accrued interest and other current assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(89) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">88&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- trade and other accounts payable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(420) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">555&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">451&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- accrued expenses and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">154&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(19) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(198) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cash from operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,841&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,547&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,415&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends received </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">129&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">147&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">189&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest received </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">455&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">164&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">234&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest paid </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(790) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(579) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(432) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net extraordinary expense paid </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(300) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(162) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(50) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income taxes paid </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6,189) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,539) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,529) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net cash provided from operating activities</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,146&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,578&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,827&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Cash flows from investing activities</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,304) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,205) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(959) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- fixed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,273) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6,843) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7,843) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- new consolidated subsidiaries and businesses </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,662) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,043) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(283) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(420) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(272) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(702) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(441) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(61) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(103) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- financing receivables </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(684) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(661) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,095) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- change in accounts payable in relation to investments </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">and capitalized depreciation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(160) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">193&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">207&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(10,944) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(9,892) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(10,778) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Disposals: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- fixed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">882&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">475&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">177&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- consolidated subsidiaries and businesses </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,084&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">270&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">338&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">140&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">113&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">978&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">194&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">301&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- financing receivables </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,333&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">234&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,758&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- change in accounts receivable in relation to disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(35) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,390&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,363&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,720&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net cash used in investing activities</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(6,554)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(8,529)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(8,058)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Cash flows from financing activities</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Proceeds from long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">636&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,145&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,118&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Payments of long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,311) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(503) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(485) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Additions to (reductions of) short-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">141&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,094&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,004) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(534)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,736&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,629&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Payments to (by) minority shareholders </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,337&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Sale (purchase) of additional interests in subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">943&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(103) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,606) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends to minority shareholders </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,736) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,035) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,011) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,494) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(770) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(329) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net cash used in financing activities</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,484)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(110)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(4,304)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Effect of change in consolidation area</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(9) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Effect of exchange rate differences</I> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(121) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(98) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net cash flow for the year</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>146&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,875&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,642)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Cash and cash equivalent at beginning of the year</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,244&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,390&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,265&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Cash and cash equivalent at end of the year</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,390&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,265&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,623&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Center" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(The accompanying notes
are an integral part of these consolidated financial statements)</I> </FONT> </P>



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<P STYLE='page-break-before:always'>


<a name="f13"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>

<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>statements of
changes in shareholders&#146; equity </B></FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>



<TR VALIGN=top>
     <TD WIDTH="20%" ALIGN="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(Amounts stated in million  euro) </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>  Share
  capital
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>   Legal
  reserve
    of
  Eni SpA
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>   Reserve
     for
   treasury
   shares
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>  Reserve
  mergers
    from
  </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>  Distributable
      reserve
    of Eni SpA
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>      Former
      Agip SpA
      reserves
   reconstituted
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>    State
   grants
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>   Consolidation
        reserves
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>          Reserve for
       shares granted
         to employees
         article 2349
           civil code
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>          Reserve
       article 13
       Law Decree
         124/1993
  </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>       Cumulative
      translation
       adjustment
          reserve
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>           Loans
        serviced
          by the
      Government
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>   Treasury
     shares
</B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>    Retained
    earnings
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>    Net income
  for the year
 </B> </FONT></TD>
     <TD WIDTH="5%" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>       Total



 </B> </FONT></TD></TR>






<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balance at December 31, 2000</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,133&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>827&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,400&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,856&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>103&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>58&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>911&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(574)</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,904&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,771&nbsp;</B> </FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>22,401&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Dividend distribution</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(euro 0.212 per Share)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,664)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,664)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Allocation of 2000 net income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,658&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,448&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(4,107)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Shares repurchased</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,494)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,494)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Conversion of the share capital</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>from italian lire to euro</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(132)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>132&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Unallocated lower cost of investments</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>carried on under equity method</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>25&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(4)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange differences arising</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>on the translation of foreign</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>currency financial statements</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>451&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>451&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Other changes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>13&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>13&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net income for the year</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7,751&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>7,751&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balance at December 31, 2001</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,001&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>959&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,400&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,514&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>103&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>62&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,362&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(2,068)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,365&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,751&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>27,483&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Dividend distribution</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(euro 0.75 per Share)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(757)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,119)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,876)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Allocation of 2001 net income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>5,629&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(5,632)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Increase of reserve for shares</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>granted to employees</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>article 2349 civil code</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Authorization to repurchase shares</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>2,000&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,000)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Reserve from mergers</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,390&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,391)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Shares repurchased</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(770)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(770)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Shares issued under stock grant plan</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange differences arising</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>on the translation of foreign</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>currency financial statements</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,125)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,125)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Other changes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(48)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(48)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net income for the year</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4,593&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>4,593&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balance at December 31, 2002</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,002&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>959&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,400&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,390&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>758&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>103&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>62&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(763)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(2,838)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12,555&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,593&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>26,257&nbsp;</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Dividend distribution</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(euro 0.75 per Share)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,833)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(2,833)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Allocation of 2002 net income</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>789&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>971&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,760)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Shares repurchased</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(329)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(329)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Reduction in value of stock grant</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(3)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>3&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Shares issued under stock grant plan</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Reclassification</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,390)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>1,500&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(110)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange differences arising</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>on the translation of foreign</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>currency financial statements</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,845)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(1,845)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Exchange differences arising</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>on the distribution of dividends</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>and other changes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>103&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(245)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(142)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Net income for the year</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>&nbsp;&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>5,585&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>5,585&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balance at December 31, 2003</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,003&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>959&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,397&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,050&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>103&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>62&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(2,505)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(3,164)</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>13,171&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,585&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>26,696&nbsp;</B> </FONT></TD></TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Times Center" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(The accompanying notes
are an integral part of these consolidated financial statements)</I> </FONT> </P>





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<P STYLE='page-break-before:always'>


<a name="f14"></a><div align="right"><font face="Times New Roman, Times, serif" size="2"><a href="#content">Table of Contents</a></font></div>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notes to the
Consolidated Financial Statements </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>1 General </B></FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni SpA and its
subsidiaries  (&#147;Eni&#148;) together constitute a fully integrated company operating in the oil
and gas,  electricity  generation,  petrochemicals,  oilfield services and engineering
 industries.  Eni SpA is the successor entity to Ente Nazionale  Idrocarburi,  which was
established in 1953 as public statutory body to act as Italy&#146;s national oil and gas
company.  In July 1992, in connection with the  privatization  program of the Italian
 Government (the  &#147;Government&#148;),  the public statutory body was converted into a joint
stock company,  with the Ministry of Economy and Finance  (previously  Ministry of
Treasury,  Budget and Economic Planning) of Italy as the sole shareholder. See Note 13 &#147;Shareholders&#146; equity&#148; for
further information regarding share capital. </FONT></P>


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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2 Summary of
significant accounting and reporting policies </B></FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Basis of presentation
</B>
<BR>The consolidated financial statements of Eni have been prepared in accordance with Eni&#146;s
group accounting policies which are in accordance with principles prescribed by
Italian law and supplemented by the accounting principles issued by the Consiglio
Nazionale dei Dottori Commercialisti e dei Ragionieri or, in the absence thereof and if
applicable, the International Accounting Standards Board (IASB). In the absence of
indications in said principles, particularly related to the application of the Unit of
Production and Production Sharing Agreement methods of accounting, specific criteria
for hydrocarbons exploration and production applied internationally have been followed
(collectively, &#147;Italian GAAP&#148;). Italian GAAP differ in certain respects from
generally accepted accounting principles in the United States (&#147;U.S. GAAP&#148;). A
description of these differences and their effects on net income and shareholders&#146; equity
is set forth in Notes 27 and 28. The financial statements have been reformatted from the
original Italian statutory financial statement presentation and include certain
additional disclosures in order to conform more closely to the form and content of
financial statements required by the U.S. Securities and Exchange Commission (the &#147;SEC&#148;).
Reclassifications concerned essentially a different aggregation of certain items
that were distinguished between current and non-current, as well as the recording
as a decrease in net borrowings of implicit interests and the reclassification as a
decrease in net equity of treasury shares purchased, items that in the original Italian
statutory financial statements are classified as current assets and fixed assets. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Principles of
consolidation </B>
<BR>The consolidated financial statements include the statutory accounts of
Eni SpA and all Italian and foreign companies controlled by Eni SpA, directly or
indirectly, either by holding the majority of the voting rights or sufficient votes to
enable it to exercise control at ordinary shareholders&#146; meetings. The consolidated
financial statements also include, on a proportional basis, the accounts of companies
controlled jointly with other partners, except for joint ventures which are accounted for
under the equity method. The effects of proportionate consolidation are not material.
Insignificant subsidiaries, companies purchased exclusively for sale and companies in
liquidation, if their exclusion does not result in a misrepresentation of the company&#146;s
financial condition and consolidated results, are not included in the scope of
consolidation. The effects of these exclusions on the whole, are not material.
<BR>Companies
excluded from consolidation are accounted for under the equity method or cost basis as
described below under the heading Investments. </FONT> </P>




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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Investments
</B>
<BR>Investments in non-consolidated subsidiaries excluded from the consolidation process and
in companies where Eni SpA has a 20% to 50% investment, if material, are accounted for
using the equity method. Other investments are recorded at cost, adjusted for permanent
impairment in value. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Sales of stakes in
consolidated subsidiaries </B>
<BR>Gains or losses on sales of stakes in consolidated subsidiaries
are recorded in the income statement for the amount corresponding to the difference
between proceeds from the sale and the divested stake of net equity. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Fiscally driven
entries and intercompany transactions </B>
<BR>The statutory financial statements reflect certain
tax-driven entries. The effects of the tax-driven entries and all intercompany balances
and transactions have been eliminated in consolidation. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Foreign currency
translation </B>
<BR>Assets and liabilities of foreign consolidated companies have been
translated at exchange rates ruling at year-end. Equity accounts of foreign
consolidated companies are translated using the historic exchange rates. Income
statement accounts of foreign consolidated companies are translated at the average
rates for the period (source: Ufficio Italiano Cambi). Related translation
adjustments are reported as a component of shareholders&#146; equity. Financial statements
of foreign subsidiaries which are translated into euro are denominated in their
functional currencies.
<BR>Monetary assets and liabilities denominated in currencies
other than the functional currency are translated into euro using the prevailing rate
at the balance sheet date. All differences are recognized in earnings in the period. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Accounting
principles </B></FONT></P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Cash and cash
equivalents </B>
<BR>Eni considers cash and cash equivalents to be its cash on hand and on deposit
with banks and short-term investment with original maturities of 90 days or less. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Marketable securities
</B>
<BR>Marketable securities are stated at the lower of purchase cost or market value and are
usually available for sale. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Inventories
</B>
<BR>Inventories, except for those relating to contract work in progress, are stated at the
lower of cost or market value. The cost of inventories of hydrocarbon (crude oil,
condensates and natural gas) and petroleum products, representing 57%, and 50% of Eni&#146;s
inventories at December 31, 2002 and 2003, respectively, is substantially determined
by the last-in, first-out (LIFO) method; the cost of inventories of the Petrochemicals
segment, representing 19% of Eni&#146;s inventories at December 31, 2002 and 2003, is
generally determined by the average cost method.
<BR>Contract work in progress, representing
6% and 13% of inventories at December 31, 2002 and 2003, respectively, is recorded using
the percentage-of-completion method measured on the cost-to-cost basis. Payments
received in advance of construction are subtracted from inventories and any excess of
such advances over the value of work performed is recorded as a liability. Contract work
in progress not yet invoiced, whose payment is agreed in a foreign currency, is
translated in euro using the current exchange rates at year-end and the effects are
recorded in the income statement. Future losses related to a contracts whose future
costs exceed future revenues, are accrued for as soon as the company becomes aware of
such losses.
<BR>The remaining inventories are determined, generally, by the average cost
method. </FONT> </P>

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<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Fixed assets </B>
<BR>Fixed
assets are stated at cost as adjusted by revaluations in accordance with various
Italian laws; revaluations are included in consolidated shareholders&#146; equity. Eni
capitalizes interest on debt incurred in connection with specific projects. Cash
requirements in excess of such debts are satisfied primarily through funds generated and
contributed in the period of construction.
<BR> Investment grants from Government agencies are
recorded in a contra asset account when authorized, if all the required conditions have
been met. Such grants are amortized over the useful life of the assets. </FONT> </P>




<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Depreciation of
fixed assets, except those related to exploration and production activities, is
computed on the revalued cost, using the straight-line method by applying
depreciation rates that are based on the estimated remaining useful lives of the fixed
assets. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Depreciation rates
used are as follows: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">% </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Buildings </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Plant and machinery: </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- pipelines, distribution networks and related plant and machinery </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other plant and machinery </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Industrial and commercial equipment </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT> </TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fixed assets are
written down whenever  events and changes in  circumstances  indicate that the carrying
 amount may not be  recoverable.  Eni calculates the writedown as the  difference
 between the expected  accumulated discounted cash flow and the book value of the asset.<BR>
When the circumstances causing impairment cease to exist, Eni reverses previously
recorded impairment charges net of depreciation.
<BR>Renewals and improvements which extend
asset lives are capitalized; maintenance and ordinary repairs are expensed as incurred. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Intangible assets
</B>
<BR>Intangible assets are stated at cost, including interest on debt incurred in connection
with specific projects as indicated previously for fixed assets.
<BR>Goodwill is recorded as
an asset when purchase consideration exceeds the fair value of assets and liabilities
acquired and is amortized at constant rates in the periods of use, provided it is no
longer than 20 years from the year of recording.
<BR>Other intangible assets, except for
those related to exploration and production activities, are amortized over the period
of expected benefit. Intangibles are written down whenever events or changes in
circumstances indicate that the carrying value may not be recoverable. Eni calculates
the writedowns as the difference between the expected accumulated discounted cash
flow and the book value of the intangible assets. When the circumstances causing
impairment cease to exist, Eni reverses previously recorded impairment charges net of
amortization. However, goodwill and capitalized organizational costs are not revalued. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exploration and
production activities </B></FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Acquisition of mineral
rights </I>
<BR>Costs associated with the acquisition of mineral rights, including reserves
purchased in connection with such acquisition, are capitalized. Mineral rights can also
include exploration permits, among other items. Mineral rights are amortized on a
straight-line basis over the expected period of benefit. Capitalized costs associated
with proved reserves are amortized on a Unit-of-Production (UOP) basis, while
capitalized costs related to all other reserves are not amortized until classified as
proved. Capitalized costs related to abandon drilling programs are expensed. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Exploration </I>
<BR>Costs
associated with exploratory activities for oil and gas producing properties incurred
to obtain information in order to characterize fields (such as acquisition of seismic
data from third parties, test wells and geophysical surveys) are recorded as intangible
assets and amortized in full in the period incurred (i.e. expensed as incurred for
financial reporting purposes). </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Development
</I>
<BR>Development costs are those costs incurred to obtain access to proved reserves and to
provide facilities for extracting, gathering and storing oil and gas and are
capitalized and amortized on a UOP basis. Costs related to unsuccessful developmental
wells are expensed immediately as loss on disposal.
<BR>Writedowns and revaluations of
development costs are made on the same basis as those for fixed assets. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Production </I>
<BR>Production
costs are costs to operate and maintain wells and field equipment and are expensed as
incurred. </FONT> </P>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Abandonment </I>
<BR>Eni
regularly accrues costs expected to be incurred with respect to eventual well
abandonment, including costs associated with site restoration, on a unit of production
basis. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Reserve for employee
termination indemnities and other employee benefits </B>
<BR>Eni&#146;s employees are eligible,
immediately upon termination, for severance pay pursuant to Italian law. Eni accrues a
reserve for such employee termination liabilities over the period of employment. The
amount accrued at each balance sheet date reflects the aggregate liability for all
eligible employees if terminated, net of applicable advances.
<BR> In addition, Eni makes
contributions to certain employee associations that provide medical and various other
employee benefits to current employees. These plans are not administered by Eni and
contributions are determined in accordance with the agreements negotiated with trade
unions. Eni expenses the contributions to the associations in the periods in which they
are made.
<BR> Eni&#146;s pension obligations relate only to operations outside Italy and are not
significant. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Treasury shares
</B>
<BR>Treasury shares acquired as long-term investments are recorded at cost written-down for
impairments in value as a reduction of shareholders&#146; equity. When the reasons for the
impairment cease to exist, treasury shares can be revalued up to the original cost
basis. Treasury shares acquired following the group incentive plans are recorded at
the lower of purchase price or fair value for stock grants and at the lower of purchase
price or strike price for stock options. Treasury shares acquired following the
outstanding incentive plans are recorded at the lower of purchase price or market value. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Recognition of
revenues and costs </B>
<BR>Revenues from sales of products are recognized upon transfer of title.
In particular, revenues are recognized: </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1) for natural gas,
when the natural gas leaves Eni&#146;s distribution network and is delivered to the customer;
<BR>2) for crude oil, generally upon shipment;
<BR>3) for petroleum products sold to retail
distribution networks, generally upon delivery to the service stations, whereas all other
sales are generally recognized upon shipment from Eni&#146;s plants; and,
<BR>4) for chemicals,
generally upon shipment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In all instances where
revenue is recognized upon shipment, all risk of loss has transferred to the buyer upon
shipment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues from natural
gas and crude oil production from properties in which Eni has an interest  together with
other producers are recognized  based on actual  quantities  produced and sold on Eni&#146;s
behalf (sales method). Differences  between Eni&#146;s net working interest volume and actual
production  volumes are not significant.  Revenues related to long term  construction
 contracts are recognized using the  percentage-of-completion  method measured on the
cost-to-cost basis. Provisions for anticipated losses on long-term contracts are recorded
in full when such losses become evident. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues  related to
amounts in excess of the original  contract price due to the incurrence of  unanticipated
 additional  costs (i.e. Eni claims against third parties),  are recognized when it is
probable that the claim will result in additional contract revenue and the amount of the
claim can be reasonably estimated. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Costs are recognized
when the related goods and services are sold, consumed or allocated, or when their future
useful lives cannot be determined. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni is party to
certain  Production Sharing  Agreements  whereby taxes are settled by joint venture
partners which are state-owned  entities in the name and on behalf of Eni out of reserves
 produced.  The Company records such income taxes owed by Eni but paid on its behalf in
revenues and income tax expense. </FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Income taxes </B>
<BR>Deferred
tax assets or liabilities are recognized for differences between the financial
reporting and tax bases of assets and liabilities. Deferred tax liabilities are not
recognized if ultimate payment is not deemed probable. Deferred tax assets are
recognized when there is a reasonable expectation of their realization. Deferred tax
liabilities are recorded in the &#147;Non-current income tax liabilities&#148; account, while
deferred tax assets are recorded in &#147;Other&#148; (non-current assets). Deferred tax assets are
offset against deferred tax liabilities if they relate to the same tax paying entity. </FONT> </P>




<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Derivatives </B>
<BR>With
respect to interest rate, foreign exchange and price risks, Eni enters into derivative
transactions to hedge specific transactions as well as net interest rate and foreign
currency positions. See Note 23 for a description of Eni&#146;s overall strategy and
description of financial instruments utilized to mitigate market risk.
<BR>The interest
differentials to be received or paid on interest rate swaps, as well as interest
differentials on interest rate collars, are charged to the income statement on an
accrual basis. The interest differentials on forward rate agreements are recognized
at the date of settlement of the contract and charged to the income statement on an
accrual basis over the period hedged. Such interest rate differentials are recorded
in &#147;Accrued interest and other current assets&#148; or &#147;Accrued expenses and other&#148; (current
liabilities) as applicable until recognized in the income statement as &#147;Financial expense
and exchange differences net&#148;.
<BR>Foreign exchange hedge derivatives are valued at the
spot rate at year-end and the related gains and losses are recorded in income as exchange
gain and loss. Derivatives on future commitments are not valued at the exchange rate
at the year-end, but they are considered to exclude any deferred losses. Premiums or
discounts are accrued over the life of the contract and classified as exchange
differences. With reference to options, the premiums paid are recorded as &#147;Marketable
securities&#148; or &#147;Other assets&#148;, depending on the maturity of the contract. Premiums
are written down depending on the maturity of the contract if the strike price is fair
and, if it is not fair, the option is valued with the same criteria for securities.
<BR>The
gains on price risk hedge derivatives are recorded in income to the extent of
writedowns of hedged assets; losses are recorded in income if necessary to adjust the
hedged assets to the value attributed to them by the derivative when they are accrued,
consistent with the evaluation of the hedged assets. The gains and losses are classified
consistently with the classification of the sale of the hedged asset. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Research and
development costs </B>
<BR>Research and development costs are generally expensed as incurred.
<BR>For
the years ended December 31, 2001, 2002 and 2003, total research and development costs
were euro 203 million, euro 175 million and euro 238 million, respectively, and euro
13 million, euro 11 million and euro 52 million as capitalized costs. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Environmental
expenditures </B>
<BR>Environmental expenditures are made in order to prevent, reduce, repair or
control the environmental impact of production activities. Environmental expenditures
that improve or extend the useful lives and increase the production capacity or safety
of fixed assets are capitalized in the appropriate fixed asset accounts. Ongoing
environmental compliance costs are expensed as incurred. Reserves for environmental
contingencies are established when it becomes probable or certain that a liability has
been incurred and the amount can be reasonably estimated. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Restructuring costs
</B>
<BR>The costs of redundancy incentives are accrued when a workforce reduction program is
defined and the conditions precedent for its implementation have been satisfied.
Restructuring charges also include the costs of closures of facilities and asset
impairments. Such charges are recorded as extraordinary items. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Statements of cash
flows </B>
<BR>The cash flow statements are prepared in accordance with International Accounting
Standards, using the indirect method.
<BR>Unless otherwise indicated, all monetary amounts in
the financial statements and in these notes are presented in millions of euro or millions
of US dollars, except share, per share, ADS and per ADS data. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Changes in accounting
principles
</B><BR>Beginning with 2002, Eni changed the accounting for stock-based compensation plans
for managers of Eni with stock grants and stock options granted during 2002 and 2003.

<BR>In the past, as stock grants were considered part of the overall
compensation paid to employees, at the grant date only the social security
contributions as well as the relevant portion of termination indemnity expected to
be borne by Eni at the date of exercise of the option were
recorded as an expense in the statement of income. The issue of new
shares was recognized in the balance sheet accounts at the issue date. Eni did not have
stock grant plans which allowed for the assignment of treasury shares.</FONT> </P>






<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Relative to the stock
option plans, at the grant date, no compensation expense was recognized in the
financial statements. At the exercise date, the issue of new shares or the allocation of
treasury shares was recognized in the balance sheet accounts, with no effect on the statement of income.
<BR>Starting in 2003, stock
grant and stock options granted to Group managers are being recognized as compensation
expense, as these amounts represent employee compensation.
<BR>The cost of
stock-based compensation is measured by the fair value of the award at the grant date and is
recognized as an expense over the vesting period<SUP>1</SUP>. The cost of related social security
contributions and termination indemnity related to stock grant plans are also
recognized as an expense over the vesting period.
<BR>The fair value of stock grants is determined as
the market value of the shares at the grant date, less the present value of dividends
expected to be declared during the vesting period. The fair value of stock grants for 2003 was euro
11.1954, 6.0185 and 2.8503 per share for Eni, Saipem and Snam Rete Gas respectively.
The fair value of stock options is represented by the value of the option determined
by applying the Black-Scholes model, which takes into account the conditions for the
exercise of the options, the present value of shares and the expected volatility and
the risk-free interest rate. The fair value of stock options for 2003 was euro 1.5045,
1.1928 and 0.4206 per share for Eni, Saipem and Snam Rete Gas, respectively.
<BR>The cost of
stock grants made with the use of treasury shares and the related social security
contributions and termination indemnity, are recognized as a charge to the item &#147;Reserve
for risks and contingencies - Other&#148;and the cost of stock options is recognized as a
charge to the item &#147;Disposable reserves&#148;.
<BR>Treasury shares purchased for the purpose of servicing
stock-based compensation are recorded in the balance sheet item &#147;Marketable
securities&#148; and valued at the lower of the purchase price and the fair value of the stock
grants, or, in the case of stock options, at the lower of purchase price and exercise
price of the options.
<BR>Overall, the fair value of stock grants and stock options assigned to
Eni Group managers in 2003 amounted to euro 33 million, as follows: </FONT> </P>





<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Eni</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Saipem</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Snam Rete Gas</B> </FONT> </TD>
     <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fair value of stock grants and stock options </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Social security contributions and employee termination indemnities </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>27&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>33&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The cost recognized in
the income  statement,  determined on a pro rata basis over the vesting period,  amounted
to euro 6 million,  to which the writedowns of cost to fair value of treasury shares servicing stock grant
plans of euro 3 million must be added. With reference to the deferred fiscal deductibility of the charges
recognized in the income statement,  deferred tax assets were recorded for euro 4 million. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>3 Marketable
securities </B>
<BR>Marketable securities consist of the following: </FONT> </P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,2002</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other securities: </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Italian treasury bonds </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">907&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">963&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">301&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">301&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,208&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,264&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,208&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,277&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Investments of euro 13
million concern the shares of Saipem SpA which were purchased for their stock option and
stock grant plans.
<BR>On December 31, 2003, the due dates of other securities were the
following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Times DIV Justify" FSL="Workstation" -->
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>_________________________________ </FONT></DIV>

<!-- MARKER FORMAT-SHEET="Times DIV Justify" FSL="Workstation" -->
<DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><SUP>1 </SUP>For stock grants,
the period between the grant date and the date of assignation of shares; for stock
options, the period between the grant date and the date in which the option can be
exercised. </FONT> </DIV>







<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,2002</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">within 12 months </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">141&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">119&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">within 5 years </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">882&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">942&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">beyond 5 years </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">185&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">203&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,208&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,264&nbsp;</B> </FONT> </TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities for euro
483 million are considered coverage of technical reserves of Padana Assicurazioni SpA
(euro 489 million at December 31, 2002). </FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>4 Receivables
</B>
<BR>Receivables by type and due date consist of the following: </FONT> </P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=top>
     <TD ALIGN="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002 </B> </FONT> </TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003 </B> </FONT> </TD></TR>
<TR>
<TD></tD>
<TD><hr size=1></tD>
<TD><hr size=1></tD>
</TR>



<TR VALIGN=Bottom>
     <TD WIDTH=28% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Current</B> </FONT> </TD>
     <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non-current</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Current</B> </FONT> </TD>
     <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non-current</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trade: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- customers </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,656&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">161&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,817&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,243&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">233&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,476&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">273&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">273&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">296&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">296&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,929&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>161&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,090&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,539&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>233&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,772&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Financing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,340&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,286&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,626&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">551&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,098&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,649&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,261&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,053&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,314&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,712&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,776&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>13,530&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,500&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>16,030&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>13,802&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,395&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15,197&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#147;Trade&#148; receivables
of euro 9,772 million increased by euro 682 million. This increase relates primarily to
the Gas &amp; Power (euro 361 million) and Refining &amp; Marketing (euro 307 million).
<BR>&#147;Financing&#148;  receivables
of euro 1,649 million include loans made for operating  purposes for euro 1,409 million
(euro 2,624 million at December 31, 2002).  The decrease of loans made for operating
 purposes of euro 1,215 million is primarily due to the collection of the loans made on
behalf of affiliated companies,  Transitgas AG (euro 655 million), EnBW - Eni
Verwaltungsgesellschaft mbH (euro 264 million),  Transmediterranean Pipeline Co Ltd (euro
33 million) and to exchange rate  differences of euro 312 million due to the translation
of financial  statements  prepared in currencies  other than euro. Such decrease was
partially offset by the concession of new loans, in particular to Albacom SpA (euro 54
million).
<BR>Repayment of such receivables of euro 32 million (euro 38 million at December
31, 2002) is contingent upon the outcome of financed activities, while a portion of the
loans may be converted into capital.
<BR>&#147;Other&#148; receivables consist of the following: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accounts receivable from: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Italian tax authorities related to: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&#149; income tax credits </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">973&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,024&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&#149; interest on tax credits </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">317&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">337&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&#149; value added tax (VAT) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">383&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">149&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;&#149; other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">113&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">97&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- joint venture operators in exploration and production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">758&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">532&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- insurance companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">276&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">278&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- foreign tax authorities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">314&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">232&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Italian governmental entities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">202&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">198&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- receivables from affiliates and unconsolidated subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Prepayments for services </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">174&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">150&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other receivables </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">777&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">702&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,314&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,776&nbsp;</B> </FONT> </TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The interest rate
applicable to tax credits has been 1.375% for each six month period from July 1, 2003
(2.5% in the first half of 2003).
<BR>Approximately 56.5% of Eni&#146;s non-current receivables at
December 31, 2003 were denominated in currencies other than the euro (45% at December 31,
2002).
<BR>Eni did not have any significant concentration of credit risk as of December 31,
2002 and 2003.
<BR>The above amounts are net of the allowance for doubtful accounts, which
amounts to euro 730 million, 875 million and 1,277 million at December 31, 2003, 2002 and
2001,  respectively.  The evolution of the allowance in the past three years is as
follows: </FONT></P>






<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=left><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balance</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Additions</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Deductions</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year-end</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at the beginning</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>changes</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of the year</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">928&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">90&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(77) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">336&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,277&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2002 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,277&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">111&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(106) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(407) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">875&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">875&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">129&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(44) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(230) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">730&nbsp; </FONT></TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other changes for the
year ended December 31, 2003 of euro 230 million relate primarily to the elimination of a
portion of the allowance for doubtful  accounts (euro 107 million) and the  corresponding
 receivables  from Italian tax  Authorities,  which was accrued by Eni SpA following the
decision of the Constitutional Court that has rejected the ruling on legitimacy advanced
by the Court of Cassazione, accepting the appeal of Tax Authorities against the
reimbursement asked by Eni SpA of income taxes for the year 1988. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>5 Inventories</B> </FONT> </P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100% align=center>


<TR VALIGN=top>
     <TD ALIGN="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002 </B> </FONT> <hr size=1></TD>
     <TD COLSPAN="5" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003 </B> </FONT><hr size=1> </TD></TR>




<TR VALIGN=top>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Crude oil,
gas and
petroleum
products</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Chemical
products</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Work in
progress
long-term
contracts</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Crude oil,
gas and
petroleum
products</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Chemical
products</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Work in
progress
long-term
contracts</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD></TR>


<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Raw and auxiliary materials and consumables </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">460&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">187&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">372&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,019&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">409&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">205&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">418&nbsp; </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,032&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Products being processed and semi finished products </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">85&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">87&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Work in progress long-term contracts </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">184&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">184&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">433&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">433&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Finished products and goods </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,293&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">418&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">87&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,798&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,170&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">416&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">41&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,627&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Advances </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">110&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">114&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">114&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,821&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>622&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>184&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>573&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,200&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,652&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>636&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>434&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>571&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,293&nbsp;</B> </FONT> </TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Oil and petroleum
products  inventories of euro 682 million represent certain minimum quantities  (&#147;compulsory
stock&#148;) required by law (euro 595 million at December 31, 2002) and natural gas
inventories of euro 39 million represent strategic stock (the same amount at December 31,
2002), while natural gas inventories valued at euro 465 million are used to satisfy peak
demand (euro 571 million at December 31, 2002).
<BR>The excess of market value over the book
value of crude oil, petroleum products and purchased natural gas at year-end was euro
1,247 million (euro 1,375 million at December 31, 2002).
<BR>The above amounts are net of the
valuation allowance amounting to euro 107 million, 108 million and 159 million at
December 31, 2003, 2002 and 2001,  respectively.  The evolution of allowance in the past
three years is as follows: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Balance</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Additions</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Deductions</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year-end</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at the beginning</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>changes</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of the year</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">159&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2002 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">159&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(60) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(38) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">108&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2003 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">108&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(17) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(9) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">107&nbsp; </FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify Bold" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>6 Fixed assets </B></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>

<TR VALIGN=top>
     <TD ALIGN="left"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Net value
at Dec. 31,
2002</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Investments</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Depreciation</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Writedown</B> </FONT> </TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Change
in scope
of consolidation</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Exchange
rate
differences</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Other
changes</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Net value
at Dec. 31,
2003</B> </FONT>
</TD>
     <TD ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> <B>Reserve
amortization
writedown
at Dec. 31, 2003</B> </FONT>
</TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=28% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Buildings </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,761&nbsp; </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">137&nbsp; </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(129) </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(18) </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(27) </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69&nbsp; </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,795&nbsp; </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,684&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Plant and machinery </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24,065&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,800&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,106) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(262) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">761&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,053) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,012&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25,217&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36,275&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Industrial and commercial equipment </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">441&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">97&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(122) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">139&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(29) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">522&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,209&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other assets </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">278&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(90) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(12) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">291&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">734&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets in progress and advances </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,148&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,727&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(155) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">232&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,023) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,394) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,535&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">476&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>33,693&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,843&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(3,447)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(436)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,134&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(3,144)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>717&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>36,360&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>40,378&nbsp;</B> </FONT> </TD></TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Capital  expenditures
 of euro 7,843 million (euro 6,843 million in 2002)  primarily  relate to the Exploration
&amp; Production  segment (euro 5,033  million),  Gas &amp; Power segment (euro 1,655 million),
 Refining &amp; Marketing segment (euro 652 million) and Oilfield Services,  Construction and
Engineering segment (euro 264 million, of which euro 249 million related to the
construction and drilling  activity).
<BR>Writedowns of euro
436 million concern primarily the Exploration &amp; Production segment (euro 227 million),
the Petrochemicals segment (euro 133 million) and Syndial SpA (euro 63 million).
<BR>Exchange
rate differences due to the translation of financial  statements  prepared in currencies
 other than euro amount to euro 3,144 million related to companies whose  functional
 currency is the US dollar (euro 2,522 million).
<BR>The changes in scope of consolidation of
euro 1,134 million concern the purchase of Fortum Petroleum AS (now Eni Norge AS) (euro
1,077 million).
<BR>Other changes for euro 717 million related primarily to the attribution
to fixed assets of a portion of the difference  between purchase price and the
corresponding  equity acquired from third parties following the Public Offering for
Italgas SpA shares (euro 1,057  million);  such increase was partially  offset by the
sale of  businesses  and assets (euro 315 million)  primarily  related to the
 Exploration &amp; Production  segment (euro 133 million) and Refining &amp; Marketing segment
(euro 107 million).
<BR>Monetary revaluations included in the gross and net value of fixed
assets, amount to euro 1,084 and 82 million, respectively (euro 1,179 million and euro 64
million respectively at December 31, 2002).
<BR>At December 31, 2003 fixed assets have been
pledged for euro 486 million primarily as collateral on debt incurred by Eni (euro 489
million at December 31, 2002). </FONT></P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Fixed assets by
segment</B></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets, gross: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38,534&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38,811&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,467&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,926&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,172&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,652&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,169&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,266&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,447&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,531&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,472&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,403&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">132&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">149&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>73,393&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>76,738&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accumulated depreciation, amortization and writedowns: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,672&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,473&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,276&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,426&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,075&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,482&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,884&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,085&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,689&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,790&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,054&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,065&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>39,700&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>40,378&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets, net: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19,862&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,338&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,191&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,500&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,097&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,170&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,285&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,181&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,758&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,741&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">418&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">338&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>33,693&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>36,360&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fixed  assets  by
 segment  relating  to the 2002 were  reclassified  on the  basis of the new  division
 of activities.   In  particular,   &#147;Other  activities&#148;   included  the  information  of
 Syndial  SpA  and  its subsidiaries,  previously  included in the  &#147;Petrochemicals&#148;  segment.
 The information  relating to the new segment &#147;Corporate and financial companies&#148; was
re-classified from &#147;Other activities&#148;. </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>7 Investments</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=90% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=28% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Acquisitions</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Increase</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Reduction</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Exchange</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Reserve for</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>and&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>in value</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>in value</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>rate&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>changes</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>contingencies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>subscriptions</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>differences</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments in unconsolidated </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">247&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">72&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(36) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(31) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">285&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">552&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments in affiliates </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,240&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">537&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">162&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(335) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(89) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,562&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">773&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments in other companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">292&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">81&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(26) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(51) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">313&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,779&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>690&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>189&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(397)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(171)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>70&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,160&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,386&nbsp;</B> </FONT> </TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Acquisitions and
 subscriptions  for euro 690 million concerned mainly the subscriptions of capital
increase of Uni&#243;n  Fenosa Gas SA (euro 442  million),  of United Gas  Derivatives  Co
(UGDC)  (euro 75  million),  of Darwin LNG Pty Ltd (euro 43  million),  of  Discovery
 Producer  Services  (euro 38 million) and Eni BTC Ltd (euro 33 million).<BR>
 Increases  and reductions  in value  include  Eni&#146;s  portion of equity  earnings  or losses on
 investments accounted for under the equity method and changes in the value of
 investments  accounted for under the cost criteria.  Specifically,  the increase of euro
189 million  relates  primarily to Trans  Austria  Gasleitung GmbH  (euro  35  million),
 Transmediterranean  Pipeline  Co Ltd  (euro  21  million),  TSKJ -  Servi&#231;os  de
Engenharia  Lda (euro 20 million) and Azienda  Energia e Servizi SpA (euro 20 million);
 reductions for euro 397 million concern primarily Albacom SpA (euro 115 million),  Galp
Energia SGPS SA (euro 29 million),  Blue Stream  Pipeline Co BV (euro 25 million)  and
also the decrease in the  carrying  value of companies  valued under the equity method
for the receipt of dividends (euro 167 million).<BR> Other changes for euro 70 million
 relate  primarily to the  attribution  to investments of a portion of the difference
 between  purchase  price and the  corresponding  equity  acquired from third  parties
 following Public Offering on Italgas SpA shares (euro 104 million).  Such increase is
partially  offset by the sale of investments (euro 26 million).<BR>
The net value of euro3,160 million consists of the following companies: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN="center" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="center" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="center" colspan=3><HR size=1></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="center" colspan=3><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="45%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Eni&#146;s&nbsp;</B> </FONT> </TD>
     <TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Accounting</B> </FONT> </TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH="7%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Eni&#146;s&nbsp;</B> </FONT> </TD>
     <TD WIDTH="13%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Accounting</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>interest</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>method</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>interest</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>method</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unconsolidated subsidiaries: </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">83&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni BTC Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Conserv Inc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other <SUP>(*)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">139&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">168&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>247&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>285&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Affiliates: </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Galp Energia SGPS SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">659&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.34 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">602&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.34 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Uni&#243;n Fenosa Gas SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">416&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Azienda Energia e Servizi SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">168&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eteria Parohis Aeriou Thessaloniki SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">151&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">151&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Raffineria di Milazzo ScpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">121&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">131&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">178&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">125&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Erg Raffinerie Mediterranee Srl <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- EnBW - Eni Verwaltungsgesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- United Gas Derivatives Co (UGDC) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.33 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33.33 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Superoctanos CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">93&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Fertilizantes Nitrogenados de Oriente CEC </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Supermetanol CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.19 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">59&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.19 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Trans Austria Gasleitung GmbH <SUP>(b)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">58&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Ages Pisa SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46.18 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46.07 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Siciliana Gas SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eteria Parohis Aeriou Thessalia SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Haldor Tops&#248;e AS </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Distribuidora de Gas del Centro SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31.35 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31.35 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Transitgas AG </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">45.99 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Albacom SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">115&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">equity method </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Carson Development General Partnership </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">187&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">190&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,240&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,562&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other companies </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Nigeria Lng Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">111&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.40 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.40 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Darwin LNG Pty Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.04 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Ceska Rafinerska AS </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.33 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.33 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Discovery Producer Services Llc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.67 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16.67 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Interconnector (UK) Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.00 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">cost </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other <SUP>(*)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>292&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>313&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,779&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,160&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
</TABLE>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(*) </FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Each individual amount included herein does not exceed euro 25 million. </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(a) </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">To the company was granted a call option for the purchase with a fixed contract price (see Note 23). </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(b) </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">The company is a joint venture. </FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The net value of
investments in unconsolidated  subsidiaries and affiliates include the differences
 between purchase price and Eni&#146;s equity in the investments of euro 602 million.  Such
 differences  relate primarily to Uni&#243;n Fenosa Gas SA (euro 195 million), EnBW - Eni
 Verwaltungsgesellschaft  mbH (euro 187 million), Galp Energia SGPS SA (euro 107 million)
and Azienda Energia e Servizi SpA (euro 74 million). The following are the amounts,
 according to Eni&#146;s interest,  from the last available  financial  statements of
unconsolidated subsidiaries and affiliates: </FONT></P>



<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>amounts</B></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR>
      <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
      <TD ALIGN="CENTER"> </TD>
      <TD COLSPAN="2" ALIGN="CENTER"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR>
      <TD> </TD>
      <TD COLSPAN="2"><hr size=1> </TD>
      <TD> </TD>
      <TD COLSPAN="2"><hr size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Unconsolidated</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliates</B> </FONT> </TD>
     <TD WIDTH=1%><FONT SIZE="1"><B>&nbsp;</B> </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Unconsolidated</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliates</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>subsidiaries</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>subsidiaries</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,245&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,996&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,340&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,232&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,126&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,009&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,132&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,735&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">218&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,212&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">140&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,658&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">239&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">278&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">88&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">123&nbsp; </FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The  reserve  for
losses  related to  investments,  included  in the  reserve  for  contingencies  (Note
12) concerns the following companies: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Industria Siciliana Acido Fosforico - ISAF SpA (in liquidation) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Consorzio SET Sviluppo Elettrico Trecate </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Middle East BV </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Albacom SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Caspian Pipeline Consortium R - Closed Joint Stock Company </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Lasmo Petroleum Development BV </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fosfotec Srl (in liquidation) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Snamprotechint - Servi&#231;os e Gest&#227;o de Projectos Lda </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>106&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>121&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>8 Intangible assets</B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=TOP>
     <TD WIDTH="25%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Investments</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amortization</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Changes</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Exchange</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net value</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Reserve</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>in scope</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>rate&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>changes</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31,</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>amortization</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of consolidation</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>differences</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>writedown</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>at Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Organizational and financing costs </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(11) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Costs for research and development </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">303&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">685&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(818) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(37) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">167&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">680&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Industrial patent right and intellectual property rights </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">149&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(126) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">162&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">687&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Concessions, licences, trademarks and similar items </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,034&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(121) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(19) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">934&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,266&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Goodwill </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,307&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(141) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(29) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">813&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,982&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">333&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Intangible assets in progress and advances </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">135&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(119) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">133&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other intangible assets </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">218&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(49) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">212&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">474&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,175&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>959&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,266)</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>34</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(66)</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>774&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,610&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,508&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Organizational  and  financing  costs  of  euro  20  million  concern  costs  for  extraordinary   corporate
operations, costs for setting up or expanding production activities and costs for share capital increases.
Costs for research  and  development  for euro 167 million  concern  mainly the  purchase of mineral  rights
(euro 158 million).  This item also  includes  exploration  expenditures  amortized in the year for euro 632
million (euro 865 million in 2002).<BR>
Concessions,   licenses,   trademarks  and  similar  items  for  euro  934  million  concern  primarily  the
transmission  rights for natural gas  imported  from Algeria  (euro 709  million),  concessions  for mineral
exploration (euro 102 million) and know-how relating to new projects (euro 41 million).<BR>
Goodwill for euro 1,982 million  concerns  primarily  the Gas &amp; Power  segment  (euro 832 million,  of which
euro 813 million  relates to the Public  Offering  for the  Italgas  SpA  shares),  the  Oilfield  Services,
Construction  and Engineering  segment (euro 825 million,  of which euro 788 million relates to the purchase
of Bouygues  Offshore SA, now Saipem SA), the Exploration &amp; Production  segment (euro 213 million relates to
the purchase of Lasmo Plc, now Eni Lasmo Plc),  the Refining &amp; Marketing  segment (euro 109 million of which
euro 55 million  relates to  Companhia  S&#227;o Paulo de Petr&#242;leo  SA, now merged in Agip do Brasil  SA).  Other
changes  of euro 813 relate  primarily  to the  attribution  to  goodwill  of the  remaining  portion of the
difference  between purchase price and the  corresponding  equity acquired from third parties  following the
Public Offering on Italgas SpA shares (euro 798 million).<BR>
Other  intangible  assets  of euro 212  million  concern  primarily  royalties  for the use of  licenses  by
Polimeri Europa SpA (euro 94 million) and investments on assets of third parties (euro 15 million).
</FONT></P>




<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Changes in goodwill
for the years indicated by segment are as follows: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH="33%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Initial<BR>balance</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Capital<BR>Expenditure</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Depreciation<BR>Amor.charges</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Change in<BR>Consolidation</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Exchange<BR>difference<BR>conversion</B> </FONT> </TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other<BR>changes</B> </FONT> </TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Final<BR>balance</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Reserve<BR>for amort.<BR>preciation</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">288&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(20) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(18) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>250&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(15) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">54&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>77&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">147&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(18) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(57) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>93&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">119&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(32) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">843&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>880&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">45&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other segments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>543&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(74)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>845&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(87)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>70&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,307&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>240&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31,2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>250&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(18) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(19) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>213&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">54&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>77&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(45) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">798&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>832&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>93&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(21) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>109&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">124&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>880&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(55) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>825&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">97&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other segments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,307&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>28&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(141)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(29)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>813&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,982&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>333&nbsp;</B> </FONT> </TD></TR>
</TABLE>


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<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>9 Other non-current
assets</B></FONT></P>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Other non-current
assets consist of the following: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Securities held as long-term assets: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Italian treasury bonds </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">290&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">93&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,457&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,167&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,885&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,283&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Securities held as
long-term assets are carried at cost,  adjusted for permanent  impairment,  and represent
mainly security deposits from customers (euro 21 million, the same amount as of December
31, 2002). Other  securities  for euro 1 million  decreased by euro 289 million due
mainly to the  cancellation  of the securities  held by Eni Lasmo Plc as  guarantee  of a
debt issue  (euro 288  million);  this  guarantee  was substituted by a fixed deposit
recorded under non-current receivables for euro 234 million.<BR> Deferred tax assets are
 described in Note 12 &#147;Reserves for  contingencies  and other  deferred  non-current tax
liabilities&#148;. </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>10 Taxes payable</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes payable include
the following: </FONT></div>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Customs and excise duties </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">406&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">273&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income taxes payable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">810&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,262&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">575&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">648&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,791&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,183&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Taxes  payable of euro
2,183  million  increased by euro 392 million  following the increase of Income taxes
payable (euro 452 million)  primarily  related to substitute  taxes due: (i) for the
 revaluation of assets, provided for by the italian budget law for 2004,  and carried out
within the limits of  adjustments  made in accordance  with tax laws (euro 362  million);
 (ii) for the  adjustment  made by  Stoccaggi  Gas Italia SpA under Law No.  448/2001 of
the taxable  value of the assets  conferred  in 2001 from Eni SpA and Snam SpA to the
higher book value (euro 124 million).  Such increase has been partially  offset by the
decrease in taxes payables for customs and excise duties (euro 133 million). </FONT></P>



<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>11 Debt</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Short-term debt </B><BR>Eni&#146;s
short-term debt is composed of the following: </FONT> </P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Due to: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- banks </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,583&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,633&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other financing institutions </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">151&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- commercial paper </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,128&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,510&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- unconsolidated subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- affiliates </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">95&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,890&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,428&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Short-term debt by
currency is as follows: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,155&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,628&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,674&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,218&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Norwegian kroner </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">101&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">278&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">British pound </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,674&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Swiss franc </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">169&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">199&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,890&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,428&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
The average  interest  rate of Eni&#146;s  short-term  debt was 2.82% and 2.13% for the years ended  December 31,
2002 and 2003, respectively.<BR>
Short-term  debt of euro 7,428  million  decreased by euro 462 million.  Such  decrease was primarily due to
the exchange rate differences  related to the translation of financial  statement prepared in currency other
than euro (euro 963 million). This decrease was partially offset by the new borrowings (euro 470 million).<BR>
In 1999 Eni SpA opened a revolving  line of credit for euro 568 million,  which is due to expire in 2004 and
provides  for the  maintaining  of some  financial  ratios  generally  based  on Eni&#146;s  statutory  financial
statement.  Eni is in compliance  with the covenants  contained in its financing  arrangements.  At December
31, 2003 the line of credit was unused (completely used at December 31, 2002).<BR>
On December 31, 2003 Eni maintained  committed and uncommitted  unused lines of credit with various domestic
and  foreign  banks for euro  4,647 and 4,799  million,  respectively  (euro  1,207  million  and euro 7,272
million,  respectively,  at December 31,  2002).  These  agreements  provide for interest  charges  based on
prevailing market conditions. Commission fees on unused lines of credit are not significant.<BR>
</FONT> </P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Long-term debt</B><BR>
Eni&#146;s long-term debt, including current maturities, as of December 31, 2002 and 2003,
and the related maturity schedules are as follows: </FONT> </P>




<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2> <FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Current<BR>maturity </FONT> </TD>
      <TD ALIGN="CENTER" colspan=6><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Long-term maturity</B> </FONT> </TD></TR>

<TR>
      <TD><FONT SIZE="1">&nbsp; </FONT></TD>
      <TD><FONT SIZE="1">&nbsp; </FONT></TD>
      <TD colspan=2><hr size=1> </TD>
      <TD><FONT SIZE="1">&nbsp; </FONT> </TD>
      <TD colspan=6><hr size=1> </TD></TR>
<TR>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Type of debt instrument</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Maturity range</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2005</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2006</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2007</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2008</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>After</B> </FONT> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total</B> </FONT> </TD></TR>
<TR>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Due to banks: </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="35%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- ordinary loans </FONT></TD>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2017</B> </FONT> </TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,028&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,722&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">297&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">961&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">573&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">258&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">600&nbsp; </FONT></TD>
     <TD WIDTH="6%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,425&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- interest rate assisted loans </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2013</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">251&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">137&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">72&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- exchange rate assisted loans </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2006</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- insured facility export credit </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2006</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other financings </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2010</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">311&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">350&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">228&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">350&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,638&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,218&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>373&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,041&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>653&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>490&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>38&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>623&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,845&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Notes of credit </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2007</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Ordinary bonds </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2027</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,158&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,793&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">79&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">801&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">473&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">417&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">125&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,898&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,714&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other financing institutions </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2004-2019</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">734&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">782&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">522&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">744&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,530&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,826&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>490&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,948&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,177&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>974&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>194&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,043&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,336&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Long-term  debt of euro 8,826 million  increased by euro 1,296  million.  Such increase was primarily due to
the  difference  between the payments and the new proceeds of  liabilities  (euro 1,253  million) and to the
change in the scope of  consolidation  (euro 688 million,  of which euro 685 million related to the purchase
of Fortum  Petroleum  AS, now Eni Norge AS).  The increase  was  partially  offset by the effect of exchange
rate differences on the translation of financial  statements  prepared in currency other than euro (euro 560
million).  The balance of payments  and new proceeds of  liabilities  of euro 1,253  million  includes a new
bond issued  within the Medium Term Notes  Program for euro 2,400  million,  of which euro 1,500 million was
issued by Eni SpA.<BR>
Eni  entered  into a  financing  arrangement,  relating to bank debt that  requires  maintenance  of certain
financial ratios generally based on Eni&#146;s statutory and consolidated  financial statements.  At December 31,
2002 and 2003,  the amount of debts  subject to  restrictive  covenants  was euro 424  million  and euro 793
million, respectively. Eni is in compliance with the covenants contained in its financing arrangements.<BR>
The exchange rate assisted loans for euro 5 million relate to borrowings from European  organizations,  such
as the European  Investment  Bank, for the purpose of economic  development  whereby the Italian  Government
partially absorbs foreign exchange gains and losses related to such loans.<BR>
Ordinary  bonds of euro 4,793 million  concern  primarily  notes issued by Eni in its Euro Medium Term Notes
program for a total of euro 3,703 million and other ordinary bonds for a total of euro 1,090 million.<BR>
Ordinary  bonds,  including the issuing  entity,  the expiration  dates and the interest rates, by currency,
are as follows:</FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR>
      <TD ALIGN="LEFT"> </TD>
      <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amount</B> </FONT> </TD>
      <TD> </TD>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Maturity</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2> <FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>% rate</B> </FONT> </TD></TR>
<TR>
      <TD ALIGN="LEFT"> </TD>
      <TD ALIGN="RIGHT"> </TD>
      <TD> </TD>
      <TD ALIGN="LEFT"> </TD>
      <TD ALIGN="CENTER" colspan=2><hr size=1> </TD>
      <TD ALIGN="CENTER" colspan=2><hr size=1> </TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH="38%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="2%"><FONT SIZE="1">&nbsp; </FONT> </TD>
     <TD WIDTH="12%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>from</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>to</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>from</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>to&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Issuing entity</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Euro Medium Term Notes:</I> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,500&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2013 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.625 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">647&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2015 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">variable </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">500&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2010 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.125 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">309&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2004 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2007 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">variable </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">283&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">British pound </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2010 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2019 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.850 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.000 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Enifin SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">variable </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">91&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Swiss franc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2007 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">variable </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2013 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.650 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.820 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">72&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2008 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.000 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.050 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Swiss franc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2006 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.750 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Coordination Center SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Japanese yen </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2008 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.810 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Enifin SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.350 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,703&nbsp;</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><I>Other bonds:</I> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni USA Inc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">317&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2027 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.300 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni USA Inc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">237&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2006 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.500 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Lasmo Plc (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">213&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">British pound </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2009 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.375 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni USA Inc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">158&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2007 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.750 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Enifin SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">129&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">variable </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Investment Plc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">British pound </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">variable </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Eni Finance Inc </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.300 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,090&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,793&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*) The bond is
guaranteed by a fixed deposit recorded under non-current receivables (euro 234 million). </FONT></P>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Long-term debt,
including current maturities and average interest rates, by currency, is as follows: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Average</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Average&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>interest rate</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>interest rate</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,408&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.60 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,235&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.56 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,614&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.80 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,855&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.67 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">British pound </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">257&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10.70 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">517&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.47 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Japanese yen </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">93&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.30 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.65 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">158&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.30 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">179&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.21 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,530&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,826</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
At December 31, 2003 Eni did not maintain  committed  unused  long-term lines of credit (euro 364 million at
December  31,  2002  which  expired  in 2003).  These  agreements  provide  for  interest  charges  based on
prevailing market conditions. Commission fees on unused lines of credit are not significant.<BR>
In the normal course of business,  Eni utilizes  various  derivative  contracts to reduce risks arising from
interest rate and foreign currency exchange rate  fluctuations,  both for long and short-term debt. See Note
23 for a more detailed discussion.<BR>
Certain  debt,  in the amount of euro 409  million  and euro 332  million  at  December  31,  2002 and 2003,
respectively,  is  guaranteed by mortgages  and liens on the fixed assets of  consolidated  companies and by
pledges on marketable securities and fixed deposits.</FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>12 Reserves for
contingencies and other deferred non-current tax liabilities</B></FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=90% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=53% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Amount at the beginning of the year</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Additions</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Deductlon</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other<BR>changer</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Year-end amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>December 31, 2002</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Employee retirement and similar obligations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>86&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(9)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>36&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>128&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other reserves for contingencies: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- site restoration and abandonment </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,963&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">184&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(86) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(81) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,980&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- environmental risks </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">854&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">101&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(171) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">824&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,608&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- loss adjustments and actuarial reserves for Eni&#146;s insurance company </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">535&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">593&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- restructuring or decommissioning of production facilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">823&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(529) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">304&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- contract penalties and disputes reserve </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">213&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(36) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">211&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- losses related to investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">384&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(75) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(214) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- reserve for redundancy incentives </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(12) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other (*) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">450&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">300&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(202) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">550&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,254&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>727&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(582)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(5)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,394&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Non-current income tax liabilities: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- deferred taxation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,367&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">318&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(301) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,386&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other tax reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">254&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(34) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">225&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,621&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>326&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(304)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(32)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,611&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,961&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,068&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(895)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,133&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">December 31, 2003 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Employee retirement and similar obligations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>128&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(12)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>28&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>175&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other reserves for contingencies: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- site restoration and abandonment </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,980&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">173&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(51) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(62) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,040&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- environmental risks </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,608&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">97&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(143) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,631&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- loss ad justments and actuarial reserves for Eni&#146;s insurance company </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">593&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(21) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">599&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- restructuring or decommissioning of production facilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">304&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(61) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(75) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">218&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- contract penalties and disputes reserve </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">211&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(50) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">181&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- losses related to investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(24) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(16) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">121&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- reserve for redundancy incentives </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(33) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other (*) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">550&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">272&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(92) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(52) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">678&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,394&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>720&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(475)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(106)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,533&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Non-current income tax liabilities: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- deferred taxation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,386&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">802&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,276) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">348&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,260&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other tax reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">225&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(73) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">182&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,611&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>826&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,349)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>354&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,442&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,133&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,577&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,836)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>276&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,150&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*) Each individual
amount included herein does not exceed euro 50 million. </FONT></P>


<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">At December 31, 2003 deductions in reserves of euro 475 million not corresponding to cash expenditures
amounted to euro 129 million. The most significant deductions in 2003 primarily relate to: (i) a reversal
of the items &#147;Loss adjustment and actuarial reserve&#148; (euro 21 million) due to overestimates made by Padana
Assicurazioni SpA of insurance payments to third parties; (ii) a reversal of the item &#147;Contract penalties
and disputes reserve&#148; (euro 19 million) due to the fact that previously Eni had accrued for the payment of
contractual penalties related to the transmission and storage of natural gas. Following the issuing of a
network code and a better interpretation of the tariff regime established by the Authority for Electricity
and Gas, such penalties are no longer due. Other deductions not corresponding to cash expenditures relate
to various immaterial items.<BR>
At December 31, 2002 deductions in reserves of euro 582 million not corresponding to cash expenditures
amounted to euro 106 million. The most significant deductions in 2002 primarily relate to a reversal of
the item &#147;Contract penalties and disputes reserve&#148; (euro 31 million) due to: (i) the fact that previously
Eni had accrued for the estimated selling price of natural gas which was supplied in accordance with the
terms of existing contracts under renegotiation. When the contracts with clients were ultimately finalized
the actual price was higher than expected, and consequently the excess accrual reversed; and (ii) the fact
that previously Eni had accrued for the estimated impact of a new tariff regime for natural gas
transported on behalf of third parties. When the new tariff regime was ultimately finalized the actual
impact was lower than expected, and consequently the excess accrual reversed. Other deductions not
corresponding to cash expenditures relate to various immaterial items.<BR>
The &#147;Site restoration and abandonment&#148; reserve of euro 2,040 million represents primarily the estimated
costs for well-plugging, abandonment and site restoration (euro 2,006 million). Other changes for euro 62
million concern primarily exchange rate loss from the translation of financial statements denominated in
currencies other than the euro (euro 128 million). The total estimated future site restoration and
abandonment costs for Eni&#146;s worldwide oil and gas properties aggregated approximately euro 2,700 million
at December 31, 2003 (the same amount as of December 31, 2002).<BR>
The &#147;Environmental risks&#148; reserve of euro 1,631 million represents, primarily, the estimated costs of
remediation in accordance with existing laws and regulations, of active production facilities for Syndial
SpA (euro 1,329 million), the Refining &amp; Marketing segment (euro 176 million) and the Gas &amp; Power segment
(euro 67 million). Additions for euro 97 million relate primarily to the Refining &amp; Marketing (euro 72
million) and Gas &amp; Power (euro 18 million) segments. Other changes for euro 69 million relate in
particular to the reclassification of a portion of restructuring or decommissioning of production
facilities of Syndial SpA (euro 59 million).<BR>
The &#147;Loss adjustment and actuarial reserves for Eni&#146;s insurance companies&#148; reserve of euro 599 million
represents the liabilities accrued for claims on insurance policies underwritten by Eni&#146;s captive
insurance company.<BR>
The &#147;Restructuring or decommissioning of production facilities&#148; reserve of euro 218 million mainly
represents the estimated costs related to divestments and facilities closures of Syndial SpA (euro 192
million). Other changes for euro 75 million relate in particular to the reclassification of the
&#147;Environmental risks&#148; reserve (euro 59 million) and to the &#147;Reserve for redundancy incentives&#148; (euro 15
million) of Syndial SpA.<BR>
Contingent liabilities are included primarily under the caption &#147;Contract penalties and disputes reserve&#148;.
The balance of euro 181 million at December 31, 2003 is comprised of numerous matters of differing
natures. Accruals have been based on Eni&#146;s best estimate of the expected probable liability.
The &#147;Reserve for losses on investments&#148; of euro 121 million represents losses on investments incurred to
date in excess of their carrying value.<BR>
The &#147;Reserve for redundancy incentives&#148; of euro 65 million represents the liabilities primarily for the
Petrochemicals segment (euro 28 million), the Refining &amp; Marketing segment (euro 15 million) and Syndial
SpA (euro 10 million). Other changes for euro 17 million concern primarily the reclassification from the
&#147;Restructuring or decommissioning of production facilities&#148; reserve of Syndial SpA (euro 15 million).
With respect to the foregoing liabilities, Eni does not expect any material, reasonably possible,
additional loss beyond those amounts accrued above.<BR>
&#147;Net Deferred tax liabilities&#148; of euro 2,260 million (euro 2,386 million at December 31, 2002) have
already been reduced by deferred tax assets for which Eni possesses the legal right of offset. Deductions
for euro 1,276 million refer to utilizations following the revaluations of assets by applying the tax laws
included in the budget Law of 2004 (euro 760 million). Other changes for euro 348 million concern
primarily the fiscal effect due to the adjustment to fair value of fixed assets of Italgas SpA and its
subsidiaries following the Public Offering (euro 207 million), the change in the scope of consolidation
following the purchase of Fortum Petroleum AS (now Eni Norge AS) (euro 145 million) and the set-off, for
each company, of tax assets and deferred tax liabilities (euro 274 million). Such increase has been
partially offset by net exchange rate differences due to the translation of financial statements prepared
in currencies other than euro (euro 254 million). A description follows of net deferred tax liabilities,
determined by subtracting from the reserve for taxes the deferred income tax assets that may not be offset
and are included in the item &#147;Other non-current assets&#148;.<BR>
<BR>
<B>Net deferred income tax liabilities</B> </FONT>
</P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,224&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,032&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax assets may be offset </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,838) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,772) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,386&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,260&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax assets may not be offset </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,457) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,167) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>929&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>93&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The most significant
temporary differences giving rise to the net deferred tax liabilities are as follows: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=72% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=14% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax liabilities: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- anticipated and accelerated depreciation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,133&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,132&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- differences between purchase cost and net book value of acquired consolidated companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">457&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">448&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- reserve for uncollectable receivables </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">134&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">150&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- reserves for accelerated contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- gains taxable in the future </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- distributable reserves subject to taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">210&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">130&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,224&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,032&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax assets: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- accruals for doubtful accounts and reserve for contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,909) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,869) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- tax loss carryforwards </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,539) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,403) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- investments revaluation in accordance with Law 292/1993 and the allocation of the merger difference arising from the merger of Agip SpA into Eni SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(843) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(818) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- assets revaluation as per Law 342/2000 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(939) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(760) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- losses of investments and subsidiaries in excess of currently allowable tax deductions </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(565) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(644) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- assets revaluation as per Law 448/2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(424) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- writeoffs of tangible, intangible assets and or inventories deductable in the future </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(337) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(355) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- future deductable amortization </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(387) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(272) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(457) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(724) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(6,976)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(7,269)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Valuation allowance </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,681&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,330&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(3,295)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(3,939)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net deferred tax liabilities</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>929&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>93&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">The valuation allowance for deferred tax assets
(euro 3,681 and 3,330 million for the years ending
December 31, 2002 and 2003 respectively) mainly relates to consolidated companies with accumulated fiscal
losses which are not expected to be recovered against future fiscal profits and to temporary differences
which the company does not expect will be utilized.<BR>
<BR>
<B>Tax loss carryforwards</B><BR>
Under Italian tax regulations, losses may be carried forward for up to five years, with the exception of
the losses suffered in the first three periods, for which is allowed to have a no expiration date. For
non-Italian tax loss carryforwards, the period generally ranges an average of up to 5 years, with a
significant portion having no expiration date. Tax loss carryforwards reverse at a rate of 33% for Italian
companies and an average rate of 43% for foreign companies. </FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross tax loss
carryforwards of euro 4,054 million expire as follows: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Domestic</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Foreign</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2004 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">605&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2005 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2006 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">549&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2007 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,017&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2008 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">289&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">over 2008 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">328&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">without expiration </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,040&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,503&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,551&nbsp;</B> </FONT> </TD></TR>
</TABLE>





<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Tax loss  carryforwards  expected to be utilized amount to euro 829 million and relate  primarily to foreign
companies (euro 661 million). The tax effect of such tax loss carryforward is euro 342 million.<BR>
Other tax  reserves  include  estimated  charges of euro 182 million  for  unsettled  tax claims  related to
uncertain  application  of the tax  regulation  for the foreign  companies of the  Exploration  &amp; Production
segment. All tax years prior to 1998 have been settled,  for direct taxes, with Italian tax authorities,  by
Eni SpA and most of its Italian subsidiaries.  The situation for foreign companies is more complex,  however
all tax years have been primarily settled between 1996 and 2002.</FONT></P>


<p align="justify"><font size="2" face="Times New Roman, Times, serif"><strong>13 Shareholders'
equity </strong></font></p>
<p align="justify"><font face="Times New Roman, Times, serif"><strong><font size="2">Share capital<br>
</font></strong><font size="2">Eni SpA had 4,002,922,176 shares (nominal value
euro 1 each) fully paid-up as of December 31, 2003 (4,001,814,026 at December
31, 2002), of which: 2,558,622,108 shares, corresponding to 63.92% are publicly
held, 813,443,277, corresponding to 20.32% are held by the Ministry of Economy
and Finance, 400,288,338 shares, corresponding to 10% are held by Cassa depositi
e prestiti SpA and 230,568,453, corresponding to 5.76% are held by Eni SpA.
On December 12, 2003 the Ministry of Economy and Finance sold to Cassa depositi
e prestiti SpA 400,288,338 shares with possession from January 1, 2004.<br>
During
2003 1,108,150 shares subscribed by managers have been issued under the stock
grant plan following the expiration of the plan issued in 2000 (1,035,750 shares)
and the agreed termination of employment (72,400). </font></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"><strong>Reserves <br>
</strong>The legal reserve of Eni SpA represents earnings
restricted from the payment of dividends pursuant to the Italian Civil Code
(the &#147;Civil Code&#148;). Under the
Civil Code, with respect to income of any year, an amount equal to 5% of
the net income of Eni SpA, as recorded in Eni SpA's statutory financial statements
for such year, must be set aside until the cumulative legal reserve is equal
to one-fifth of the nominal value of Eni SpA's issued and outstanding share
capital. Such dividend restriction also applies to each Italian subsidiary
of Eni.<br>
The &#147;Reserve for the issue of shares in accordance with art. 2349 of
the Italian Civil Code&#148; contains earnings destined to increase share capital
under the incentive plans. At December 31, 2003 the number of shares to assign
for no consideration is 2,451,000 shares nominal value 1 euro (3,559,850
shares at December 31, 2002).<br>
Reserves include amounts received from the Ministry
of Economy and Finance to reimburse Eni SpA for principal and interest payments
on loans obtained and bonds issued in prior years, which under laws 730/1983,
749/1985 and 41/1986, were obligations of the Government.<br>
Exchange rate differences
due to the translation of financial statements prepared in currencies other
than euro amounted to euro 1,742 million, of which euro 1,200 million related
to companies whose functional currency is the US dollar.<br>
As provided by Italian
law, dividends may be paid by Eni SpA only out of retained earnings plus
distributable reserves and statutory net income for the current year net of
the amount to be allocated to the legal reserve in the subsequent year.<br>
Approximately
euro 22,500 million was unrestricted as to payment of dividends at December
31, 2003, a portion of which is subject to taxation upon distribution. Deferred
tax liabilities for euro 21 million have been recorded in relation to the reserves
expected to be distributed. </font></p>
<p align="justify"><font face="Times New Roman, Times, serif"><strong><font size="2">Treasury shares<br>
</font></strong><font size="2">Treasury shares amount to euro 3,164 million
(euro 2,838 million at December 31, 2002) and consist of 230,627,953 ordinary
shares nominal value 1 euro owned by Eni SpA (206,637,561 ordinary shares nominal
value euro 1 as of December 31, 2002). Such shares have been repurchased to
increase shareholder's value and in application of the incentive plans for Eni
managers, in accordance with the decisions of Eni's shareholders meetings. </font></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"><strong>Reconciliation of statutory net income and shareholders' equity to
consolidated net income and shareholders' equity<br>
</strong>The statutory financial
statements of subsidiaries reflect certain tax-driven entries. In addition, Eni
SpA's statutory financial statements do not reflect the consolidation of subsidiary
companies.<br>
Adjustments are made in consolidating the statutory accounts of Eni
SpA and subsidiary companies to reflect the consolidation principles described
in Note 2, Summary of significant accounting and reporting policies. In addition,
adjustments are made to eliminate the effects of certain tax-driven entries applied
by subsidiary companies in their respective statutory accounts.<br>
The reconciliation
of net income and shareholders' equity as reported in Eni SpA's statutory financial
statements to those reported in the consolidated financial statements is as follows:</font></p>


<table width="100%" cellpadding="0" cellspacing="2">
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
<td colspan="3" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Net income</STRONG> </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td colspan="3" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Shareholders' equity</STRONG> </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td colspan="3" align="center"><hr size=1></td>
<td></td>
<td colspan="3" align="center"><hr size=1></td>
</tr>
<tr valign=bottom>
<td width="39%"><FONT SIZE="1">&nbsp; </FONT></td>
<td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2001</STRONG> </FONT> </td>
<td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2002</STRONG> </FONT> </td>
<td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2003</STRONG> </FONT> </td>
<td width="1%"><FONT SIZE="1">&nbsp; </FONT></td>
<td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Dec. 31, 2001</STRONG> </FONT> </td>
<td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Dec. 31, 2002</STRONG> </FONT> </td>
<td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Dec. 31, 2003</STRONG> </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">As recorded in Eni SpA's financial statements </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,250</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,880</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,850</STRONG> </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>15,375</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>26,498</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>27,566</STRONG> </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Treasury shares </FONT> </td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,068) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,838) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,164) </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Difference between the carrying value of investments and the equity value of companies before consolidated adjustments </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,990 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,049 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,118 </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">18,741 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">7,118 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,413 </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Consolidation adjustments: </FONT> </td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- difference between cost and underlying value of equity </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(49) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(83) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(169) </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">459 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,131 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,873 </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT SIZE="1">- elimination of tax
adjustments and compliance with accounting policies </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">420 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,261 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,453 </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,945) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,218) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,432) </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- elimination of unrealized intercompany profits </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(130) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,024) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">132 </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,493) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,777) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,409) </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- deferred taxation </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">258 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">120 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(138) </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(127) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">120 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">117 </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- other adjustments </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,489 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">19 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(92) </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">247 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">317 </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">354 </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,228</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,222</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>6,154</STRONG> </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>29,189</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>28,351</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>28,318</STRONG> </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Minority interest </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(477) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(629) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(569) </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,706) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,094) </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,622) </FONT> </td>
</tr>
<tr valign=bottom>
<td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>As recorded in consolidated financial statements</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,751</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,593</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,585</STRONG> </FONT> </td>
<td><FONT SIZE="1">&nbsp; </FONT></td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>27,483</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>26,257</STRONG> </FONT> </td>
<td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>26,696</STRONG> </FONT> </td>
</tr>
</table>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">Other adjustment related to income of 2001 include euro 2,352 million related
to the realized gain in the consolidated financial statements for the public
offering of 40.24% of the share capital of Snam Rete Gas SpA. </font></p>

<p align="justify"><font size="2" face="Times New Roman, Times, serif"><strong>14 Net sales from operations </strong></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">Net sales from operations are as follows:</font></p>
<table width="60%" cellpadding="0" cellspacing="2" align=center>
<tr>
<td width="55%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
<td width="15%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2001</STRONG> </FONT> </td>
<td width="15%" align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2002</STRONG> </FONT> </td>
<td width="15%" align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2003</STRONG> </FONT> </td>
</tr>
<tr>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Gross sales from operations </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">63,094 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">61,500 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">65,362 </FONT> </td>
</tr>
<tr>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Change in contract work in progress </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">88 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,127 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,150 </FONT> </td>
</tr>
<tr>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Less: </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
</tr>
<tr>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">- excise tax </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(13,068) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(13,139) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(13,520) </FONT> </td>
</tr>
<tr>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">- services billed to joint venture partners </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,189) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,566) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,505) </FONT> </td>
</tr>

<tr>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Total</FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">48,925 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">47,922 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">51,487 </FONT> </td>
</tr>


</table>
<p align="justify"><font face="Times New Roman, Times, serif"><strong><font size="2">15 Purchases, services and other </font></strong></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">Purchases, services and other include the following:</font></p>
<table width="60%" cellpadding="0" cellspacing="2" align=center>
<tr valign=bottom>
<td width="70%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
<td width="10%" align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2001</STRONG> </FONT> </td>
<td width="10%" align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2002</STRONG> </FONT> </td>
<td width="10%" align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2003</STRONG> </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production costs-raw, ancillary and consumable materials and
goods </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">23,711 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">22,658 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">24,087 </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production costs-services </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">7,507 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,614 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">10,431 </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Lease, rental and royalty expenses </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,242 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,454 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,407 </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">Other expenses </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,302 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,575 </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,433 </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>33,762</STRONG> </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>34,301</STRONG> </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>37,358</STRONG> </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">less: </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">- services billed to joint venture partners </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,189) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,566) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,505) </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">- capitalized direct costs associated with self-constructed
assets </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(745) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(842) </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,277) </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">- personnel seconded </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10) </FONT> </td>
</tr>
<tr valign=bottom>
<td ><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>31,828</STRONG> </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>31,893</STRONG> </FONT> </td>
<td align="right" ><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>34,566</STRONG> </FONT> </td>
</tr>
</table>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">Lease, rentals and royalty expenses include royalties on hydrocarbons extracted
for euro 517 million, 508 and 538 in 2001, 2002 and 2003 respectively. </font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"><strong>16 Payroll and related costs </strong></font></p>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payroll and related
costs are analyzed as follows: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Wages and salaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,271&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,441&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,412&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Social security contributions </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">602&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">650&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">693&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Employee termination indemnities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">114&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">121&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">126&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Pensions and similar obligations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">83&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">119&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">91&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,082&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,346&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,353&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Plus: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- personnel seconded </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- revenues related to personnel costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(51) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(53) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(36) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- capitalized direct costs associated with self-constructed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(180) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(190) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(161) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,851&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,103&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,166&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>17 Depreciation,
amortization and writedowns</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Depreciation,
amortization and writedowns consist of the following: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation and amortization: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,370&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,423&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,266&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- fixed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,310&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,543&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,447&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,680&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,966&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,713&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Writedowns: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">95&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- fixed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">447&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">411&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>100&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>542&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>441&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,780&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,508&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,154&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- direct costs associated with self-constructed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(9) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,771&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,504&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,151&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>18 Financial income
(expense) and exchange differences, net</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Financial expense and
exchange differences, net, consist of the following: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest and other financial income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">539&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">513&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">436&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Securities gains </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">95&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest and other financial expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(932) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(737) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(710) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exchange differences, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(10) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(30) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- interest capitalized </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(259)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(167)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(154)</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>19 Other income
(expense) from investments</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other income (expense)
from investments consists of the following: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gains on disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Dividends </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income from equity investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">151&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">178&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">180&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other revaluation of investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Writedown of investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(491) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(245) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(233) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(34) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(216)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>43&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(17)</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>20 Extraordinary
income (expense)</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Extraordinary income
(expense) consists of the following: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Extraordinary income</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gains on disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,473&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">257&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">290&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other extraordinary income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">173&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">273&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,646&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>369&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>563&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Extraordinary expense</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Restructuring cost: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- provisions for risks </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(885) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(157) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(248) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- cost of redundancy incentives </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(237) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(114) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(116) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- asset writedowns and losses on disposals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(607) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(55) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(66) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total restructuring cost </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,729) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(326) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(430) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other extraordinary expenses </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(80) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(72) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(84) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,809)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(398)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(514)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,837&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(29)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>49&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>2003 Extraordinary items</B><BR>
Gains on disposals relate to sale of investments, businesses and fixed assets as a result of restructuring
activities. In particular disposal gains of euro 290 million are primarily due to the sale of service
stations and land in the Refining &amp; Marketing segment (euro 237 million) and the sale of fixed assets and
the sea transport activity in the Gas &amp; Power segment (euro 52 million).<BR>
Other extraordinary income of euro 273 million relate primarily to the compensation paid by Edison SpA to
Syndial SpA in relation to the Enimont&#146;s legal proceeding (euro 200 million) and the release of reserves
for excess provision and the definition of legal proceedings (euro 47 million, of which euro 38 million
relating to Syndial SpA).<BR>
Provisions for risks of euro 248 million relate primarily to charges for environmental remediation of
Syndial SpA (euro 82 million) and the Refining &amp; Marketing segment (euro 51 million) and to future
operating costs of inactive sites in Syndial SpA (euro 48 million).<BR>
Redundancy incentives of euro 116 million concern primarily the Petrochemicals segment (euro 37 million),
Refining &amp; Marketing segment (euro 32 million), Gas &amp; Power segment (euro 15 million) and the Oilfield
Services, Construction and Engineering segments (euro 15 million).<BR>
Writedowns and losses of euro 66 million include the loss of concession for service stations on Autostrade
(euro 35 million) and the writedown of plants in the Petrochemicals segment (euro 11 million).<BR>
<BR>
<B>2002 Extraordinary items</B><BR>
Gains on disposals relate to sales of investments, businesses and fixed assets as a result of
restructuring activities. In particular disposal gains of euro 257 million are primarily due to: (i) the
sale of service stations in the Refining &amp; Marketing segment in Italy (euro 127 million); (ii) the sale of
the share capital of Agip Nigeria Ltd (euro 87 million); (iii) the sale of fixed assets (euro 28 million,
of which euro 21 million related to the Gas &amp; Power segment); (iv) the sale of consolidated businesses
(euro 15 million).<BR>
Other extraordinary income of euro 112 million relates primarily to the release of excess reserves, the
conclusion of legal proceedings and the collection of receivables previously reserved for essentially in
the Petrochemicals (euro 72 million), Gas &amp; Power (euro 23 million) and Refining &amp; Marketing (euro 13
million) segments.<BR>
Provisions for risks of euro 157 million relate primarily to environmental restoration and to charges for
restructuring and divestments in the Refining &amp; Marketing (euro 79 million) and Petrochemicals (euro 71
million) segments.<BR>
Redundancy incentives of euro 114 million concern primarily the Petrochemicals segment (euro 34 million),
Gas &amp; Power segment (euro 27 million), Refining &amp; Marketing segment (euro 25 million) and the Oilfield
Services, Construction and Engineering segments (euro 14 million).<BR>
Writedowns and losses of euro 55 million include the writedown of fixed assets in the Petrochemical
segment (euro 23 million), the loss on the sale of the Priolo refinery to Erg Raffinerie Mediterranee Srl
(euro 22 million) and the loss on the disposal of consolidated businesses and fixed assets (euro 10
million, of which euro 9 million relate to the Gas &amp; Power segment).<BR>
<BR>
<BR>
<B>2001 Extraordinary items</B><BR>
Gains on disposals relate to sale of investments, businesses and fixed assets as a result of restructuring
activities. In particular, disposal gains of euro 3,473 million are primarily the result of: (i) the
public offering of 40.24% of the share capital of Snam Rete Gas (euro 2,453 million); (ii) the sale of the
share capital of Immobiliare Metanopoli (euro 348 million) and other real estate (euro 406 million) within
Eni&#146;s real estate divestment program; (iii) the sale of the Polyurethane Division (euro 211 million).<BR>
Between November 26 and 30, 2001, Snam Rete Gas, a company indirectly wholly-owned by Eni, completed an
initial public offering of its shares of stock in Italy relating to 171 million shares. Contemporaneously,
the company completed a private placement to foreign professional and institutional investors, including
those of the United States for 513 million shares. The global offering amounted to 684 million shares,
corresponding to 35% of Eni&#146;s investment in Snam Rete Gas. Subsequently, the Joint Lead Managers exercised
their green shoe option for an additional 102.6 million shares, increasing the total share capital of Snam
Rete Gas sold to 40.24%. The offering price was set at euro 2.8 per share with a 3% premium on the
Regulatory Asset Base set by the Authority for Electricity and Gas and a 12% premium on the company&#146;s net
equity (share capital and premium-price reserve). Total proceeds from the offering amounted to euro 2,202
million in cash and a net gain of euro 2,453 million was recognized. The gain results from the fact that
the amount of Snam Rete Gas&#146;s equity as per Eni&#146;s consolidated financial statements was a negative euro
624 million (of which euro 251 million corresponding to 40.24% of the equity sold), due to the elimination
in consolidation of a previous asset revaluation made in accordance with Italian Law 342/2000.<BR>
On April 30, 2001, following the authorization from the relevant European antitrust authorities, Eni sold
its polyurethane business to Dow Chemical for consideration of euro 428 million, of which euro 128 million
in cash, euro 204 million corresponding to a 50% interest in Polimeri Europa (of which Eni already owns
50%) and euro 96 million of royalty rights for the use of Dow proprietary technology. Eni recognized a
gain on this transaction of euro 211 million.<BR>
The disposal of Immobiliare Metanopoli and real estate resulted in cash consideration of euro 1,374
million.<BR>
Other extraordinary income of euro 173 million relates primarily to the release of the reserve for
contingencies of euro 112 million which AgipPetroli had accrued in fiscal 2000 on the basis of a ruling by
the Antitrust Authority, No. 8353 of June 8, 2000, for alleged horizontal cartel with other oil companies.
This ruling was appealed by the company and definitively annulled by the Council of State on July 20, 2001
with sentence No. 359/2001. Accordingly, the accrual was reversed.<BR>
Provisions for risks of euro 885 million related to closingdowns, disposals and environmental remediation
on plants still in operation as of December 31, 2001 in the Petrochemical segment (euro 616 million, of
which euro 240 million related primarily to environmental remediation efforts at plants that management
has specifically identified to close down in the next two-three years and euro 376 million related to
environmental compliance provisions on all operating plants made in application of Law 471/1999), and to
environmental remediation on de-industrialized areas in the Petrochemical (euro 91 million), Refining &amp;
Marketing (euro 77 million) and Gas &amp; Power (euro 44 million) segments.<BR>
Writedowns of euro 607 million related primarily to the writedown of fixed assets and investments in the
Petrochemical segment (euro 574 million) in order to align the book value of assets to the results of the
impairment test made on the basis of estimated future cash flows in a declining market scenario for
petrochemical products margins and also to the asset evaluation made by a court-appointed expert in
connection with the transfer to Polimeri Europa on January 1, 2002. These writedowns relate primarily to
olefins and aromatics plants, phenol plants and various other petrochemicals assets. </FONT> </P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>21 Income tax
expense</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Current taxes: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Italian subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,093&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,451&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,583&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- foreign subsidiaries operating in the Exploration &amp; Production segment </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,028&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,040&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,296&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other foreign subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">175&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">163&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">201&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,296&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,654&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,080&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Tax credits on dividends distribution not offset with current tax payment </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,295&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,654&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,080&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred taxes: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Italian subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">158&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(542) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(904) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- foreign subsidiaries operating in the Exploration &amp; Production segment </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">93&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other foreign subsidiaries </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(16) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(38) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>235&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(527)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(839)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,530&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,127&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,241&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Income taxes  payable
of euro 1,583  million  relate to Irpeg  (National  income tax) for euro 1.347 million
and Irap (Regional income tax) for euro 224 million and foreign income taxes of euro 12
million.<BR> The  effective tax rate is 34.5%  compared with a statutory tax rate of 39.9%,
 calculated by applying a 34% tax rate  (Irpeg)  to  income  before  taxes and 4.25%  tax
rate  (Irap) to the net value of  production  as provided for by Italian laws. <BR>
The difference between the statutory and effective tax rate is due to the following factors: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Statutory tax rate</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>40.9</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>42.1</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>39.9</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Items increasing (decreasing) statutory tax rate: </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- higher foreign subsidiaries tax rate </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.0 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.7 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7.4 </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- permanent differences </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7.6) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">0.8 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.2) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- tax benefit due to the application of favorable tax laws </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2.3) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4.9) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.4) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- effect of the application of Law No. 448/2001 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3.1) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- effect of the application of Law No. 342/2000 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4.6) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4.7) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3.6) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- effect of the budget Law 2004 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4.4) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1.4) </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.5 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(0.1) </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(10.9)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(4.6)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(5.4)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Effective tax rate</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>30.0</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>37.5</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>34.5</B> </FONT> </TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The tax  benefit  due
to the  application  of law No.  448/2001  relates  to  Stoccaggi  Gas Italia SpA that
aligned  the tax basis of the  assets  received  in 2001 by Eni SpA and Snam SpA to the
 conferral  value by paying a  substitute  tax of 9%. Tax benefits on  revaluation  of
assets are due to the  application  of the budget Law for 2004 that allows  companies to
revalue the assets  within  certain  limits made in accordance with tax laws by paying a
substitute  tax of 19%.  Permanent  differences  in 2001  concern  mainly the gain
recorded  in the  consolidated  financial  statements  due to the  public  offering  of
 40.24% of the share capital of Snam Rete Gas SpA (7.2%). </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>22 Earnings per
share</B></FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Earnings per share is calculated by dividing  &#147;Net income&#148; by the  weighted-average  number of shares issued
and outstanding during the year, excluding treasury shares.<BR>
In order to compare  earnings per share in the years  presented,  the number of shares issued  through stock
grants made in 2002 and 2003 has been added to the number of shares  outstanding  in the year 2001 and 2002.
Based  on  this  criterion,   the  number  of  shares   outstanding  was   3,911,906,449,   3,826,945,671and
3,778,436,257 in the year 2001, 2002 and 2003, respectively.<BR>
The dilutive  effect of potential  ordinary  shares,  in the term of stock  options and stock  grants,  when
converted  into  ordinary  shares on earnings  per share is not  material.  At present,  the effect of stock
options to be exercised on earnings per share at December 31, 2003 is not dilutive.<BR>
</FONT></P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>23 Commitments and
contingencies</B></FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Derivative financial instruments</B><BR>
Eni operates internationally in the oil and natural gas, electricity generation, petrochemicals and
oilfield services and engineering industries and is subject to exposure to market risks from changes in
interest rates, foreign exchange rates and commodity prices.<BR>
Derivative financial instruments are utilized by Eni to reduce these risks, as explained below.<BR>
Eni&#146;s treasury activities are managed primarily by two captive finance companies operating in the Italian
and international financial markets. Eni&#146;s operating subsidiaries are required to reduce foreign exchange
rate risk to a minimum level by coordinating their operations with such finance companies.<BR>
Eni SpA&#146;s Board of Directors has defined a policy that requires the Treasury Department of Eni SpA to
determine the maximum level of foreign exchange rate and interest rate risks that can be assumed by Eni&#146;s
finance companies. Such policy also defines the eligible counterparties in derivative transactions. As far
as interest rate and foreign exchange rate risks are concerned, the calculation and measurement techniques
followed by Eni&#146;s finance companies are in accordance with established banking standards (such standards
are established by the Basel Committee). However, the tolerable level of risk adopted by such companies is
more conservative than that defined by the Basel Committee. Eni SpA&#146;s Treasury Department is responsible
for monitoring compliance with Eni&#146;s policy, as well as the correlation between the indicators adopted for
measuring of the tolerable risk level, the portfolio of financial instruments and market conditions.<BR>
Eni does not enter into derivative transactions on a speculative basis. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(a) Notional amounts and credit exposures of derivatives</I><BR>
The notional value of a derivative is the contractual amount on the basis of which the differentials are
exchanged; this amount can be expressed either on a value basis or on a physical quantities basis (such as
barrels, tonnes, etc.). The amounts expressed in foreign currency are converted into euro applying the
exchange rate at year-end.<BR>
The notional amounts of derivatives summarized in the sections that follow do not represent amounts
exchanged by the parties and, thus, are not a measure of the credit exposure of Eni. The amounts exchanged
are calculated on the basis of the notional amounts and the other terms of the derivatives, which relate
to interest rates, exchange rates and commodity prices. Therefore, the credit exposure of interest rate,
foreign exchange and commodity contracts is represented by the fair value of contracts with a positive
fair value at year-end, reduced by the effects of master netting agreements. Eni SpA&#146;s Board of Directors
has approved policies which provide guidelines related to the criteria of eligible counterparties in
derivative transactions and permissible financing investments, including purchases of securities. Although
Eni is exposed to credit-related losses in the event of non-performance by counterparties to derivative
financial instruments, it does not expect any counterparties to fail to meet their obligations given the
high credit standings of such counterparties. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(b) Interest rate risk management<BR>
</I>Eni enters into various types of interest rate contracts in managing its interest rate risk, as indicated
in the following table: </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2002</B> </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest rate swaps </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,206&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,690&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest rate collars </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">129&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Forward rate agreements </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">220&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,555&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,764&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Eni enters into  interest  rate  derivatives,  particularly  interest  rate swaps (&#147;IRS&#148;),  to alter  interest  rate
exposures  arising from mismatches  between assets and liabilities,  to lower funding costs and to diversify
sources of funding.  Under  interest  rate swaps,  Eni agrees with other  parties to exchange,  at specified
intervals,  the difference  between interest amounts calculated by reference to an agreed notional principal
amount and agreed fixed or floating  interest rates.  The euro 484 million  increase in IRS is primarily due
to  Enifin&#146;s  transactions  in order to hedge  financial  payables  granted  to Snam  Rete Gas SpA (euro 343
million) and to EniPower SpA (euro 300 million);  this decrease has been partially  offset by the repayments
of the year of contracts used to hedge financial liabilities by Eni Lasmo Plc (euro 271 million).<BR>
The following  table  indicates the types of interest  rate swaps used and their  weighted-average  interest
rates and maturities.  Average  variable rates are based on rates at year-end and may change  significantly,
affecting future cash flows.<BR>
The comparison between  weighted-average  receive rate and  weighted-average pay rate does not represent the
result of derivatives: such result is calculated on the basis of the underlying hedged operation.
</FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH="55%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Receive-fixed/Pay-floating swaps-notional amount </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,201&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">867&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average receive rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.42&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.03&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average pay rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.77&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.26&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average maturity </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(years) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.74&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.97&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Receive-floating/Pay-floating swaps-notional amount </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,802&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,941&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average receive rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.32&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.25&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average pay rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.95&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.91&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average maturity </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(years) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.49&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.38&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Pay-fixed/Receive-floating swaps-notional amount </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,203&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,882&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average pay rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.73&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.31&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average receive rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2.43&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1.77&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- weighted average maturity </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(years) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.15&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.64&nbsp; </FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni uses  interest
 rate collars to manage its interest  rate risk. An interest rate collar is a combination
of options that enable a predetermined  interest rate band to be locked in. Eni also uses
zero-cost  collars that do not require payment of an option premium.  Interest rate
collar  contracts at year-end have terms of up to five years. </FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
<I>(c) Foreign exchange risk management</I><BR>
Eni enters into various types of foreign exchange contracts in managing its foreign exchange risk, as
indicated in the following table: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2002</B> </FONT> </TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec.31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Notional amount</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Forward exchange contracts </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,611&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,165&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Purchased options </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">348&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">550&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,959&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,715&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Eni uses forward  exchange  contracts  primarily  to hedge  existing  receivables  and  payables,  including
deposits  and  borrowings  denominated  in  currency  other than euro.  Some of the  contracts  involve  the
exchange  of  currencies  other than the local  currency,  according  to the needs of  foreign  consolidated
subsidiaries.  Both buy and sell amounts of such contracts are indicated at the notional value.  The term of
forward  exchange  contracts  is normally not longer than one year.  The  decrease of euro 1,446  million in
forward  exchange  contracts  is  primarily  due to the  expiring of the  contracts  related to Enifin SpA&#146;s
transactions in order to hedge financial  short-term  payables (expressed in British pound and changed in US
dollar) of Eni Coordination Center SA (euro 1,612 million).<BR>
Eni generally uses a combination of currency  options that enable a  predetermined  risk rate band,  related
to expenses  denominated in currency other than euro, to be locked in.  Currency  options,  purchased in the
over-the-counter  market  for a  premium,  provide  Eni with the  right to buy or sell an  agreed  amount of
currency at a specified exchange rate at the end of a specified period.<BR>
The table below  summarizes,  by major  currency,  the  contractual  amounts of Eni&#146;s  forward  exchange and
option contracts.</FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT colspan=2><hr size=1></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT colspan=2><hr size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=39% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Buy&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sell&nbsp;</B> </FONT> </TD>
     <TD WIDTH=1%><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Buy&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sell&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">US dollar </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,290&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,515&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,019&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,955&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">British pound </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,225&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,432&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">342&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Norwegian kroner </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">140&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">299&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Euro </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">126&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Swiss franc </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">392&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">177&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Japanese yen </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">183&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">99&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,850&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,109&nbsp;</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,970&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,745&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(d) Commodity price risk management</I><BR>
Exchange traded crude oil and petroleum product derivative instruments are used to minimize the commodity
price volatility.<BR>
In natural gas trading activity, Eni uses exchange traded crude oil forward contracts with the aim of
hedging the risk related to natural gas at fixed prices under supply contracts. The purchase price of such
hedging instruments is determined on the basis of a price basket with an indexation to the petroleum
products in the international markets.<BR>
In refining and marketing activities of petroleum products, Eni uses derivative instruments with the aim
of reducing the risk of industrial and marketing activities related to the uncertainty of the market
prices. In particular, Eni uses derivatives instruments to avoid that changes in the conditions of supply
and trade markets could worsen in the expected income in the period between the purchase of crude oil, the
refining and the trade of finished products.<BR>
The expiration date of contracts, with some not material exceptions, is less than 1 year.<BR>
The table below summarizes trade derivative contracts at December 31, 2002 and 2003.
</FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN=RIGHT colspan=2><hr size=1></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT colspan=2><hr size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Buy&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sell&nbsp;</B> </FONT> </TD>
     <TD><FONT SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Buy&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Sell&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=22% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Crudes </FONT></TD>
     <TD WIDTH="15%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(barrels) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,924,390&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">890,000&nbsp; </FONT></TD>
     <TD WIDTH=1%> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,629,544&nbsp; </FONT></TD>
     <TD WIDTH=17% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,146,000&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oil products </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(tonnes) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,992&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66,500&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">159,849&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">381,200&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oil products </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(gallons) </FONT></TD>
     <TD><FONT SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112,560&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104,580&nbsp; </FONT></TD></TR>
</TABLE>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>(e) Sales of government bonds</I><BR>
Eni sold Italian Government bonds to investors, primarily employees, and simultaneously entered into
interest rate swaps with such investors wherein Eni receives the rate of interest on such Italian
Government bonds and pays a floating rate of interest linked to Euribor (Europe Interbank Offered Rate).
Such investors may sell their securities back to Eni at any time for par value plus related interest with
the simultaneous cancellation of the related swaps. Eni also entered into an interest rate swap with a
financial institution wherein it receives a floating rate which is considered more favorable for its
floating rate commitment to its investors. At December 31, 2002 and 2003, euro 178 million and euro 181
million, respectively, worth of such securities remained in the hands of employees. For accounting
purposes, this transaction was treated as a sale of the bonds with gains recognized in current income. </FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Guarantees</B><BR>
Guarantees have been given by Eni to third parties. At December 31, 2002 and 2003, these guarantees were
as follows: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
     <TD ALIGN=center colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>At Dec. 31, 2002</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=center colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>At Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT colspan=4><HR size=1> </TD>
     <TD> </TD>
     <TD ALIGN=RIGHT colspan=4><HR size=1> </TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="19%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Unsecured</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Secured</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total&nbsp;</B> </FONT> </TD>
     <TD WIDTH="1%" ALIGN="RIGHT"> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Unsecured</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Secured</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>guarantees</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>guarantees</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>guarantees</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>guarantees</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>guarantees</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>guarantees</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unconsolidated subsidiaries </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">640&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">757&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">302&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">309&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Affiliated companies </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,020&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77 </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,152&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,419&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77 </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,526&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Consolidated companies </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,800&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,506&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,306&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,894&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,090&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,984&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Others </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">202&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">211&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">464&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">464&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,981&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,368&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>77</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12,426&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,931&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,275&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>77</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>13,283&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Unsecured   guarantees,   other  guarantees  and  secured  guarantees  given  on  behalf  of  unconsolidated
subsidiaries  and  affiliated  companies of euro 1,835  million (euro 1,909 million as of December 31, 2002)
consist  primarily  of: (i)  unsecured  guarantees  and letters of  patronage  given to banks in relation to
loans and lines of credit  received for euro 1,235 million  (euro 1,028  million at December 31,  2002),  of
which  euro 686  million  related to a contract  released  by Snam SpA (now  merged in Eni SpA) on behalf of
Blue Stream  Pipeline Co BV to a consortium of financing  institutions  (euro 826 million as of December 31,
2002).  The increase of euro 207 million  regards  essentially a new guarantee given on behalf of EnBW - Eni
Verwaltungsgesellschaft  mbH (euro 275 million).  Such  increase was  partially  offset by the exchange rate
differences of unsecured  guarantees given on behalf of Blue Stream Pipeline Co BV (euro 140 million);  (ii)
unsecured  guarantees  and letters of patronage  given to customers in relation to  contractual  performance
and bid bonds for euro 242 million  (euro 324  million as of December  31,  2002).  The  decrease of euro 82
million  regards  primarily the partial  extinguishment  of unsecured  guarantees  given to third parties in
order to cover the  construction  of an oil  pipeline  in  Azerbaijan  (euro 62  million);  (iii)  unsecured
guarantees  given to third  parties in relation to the  construction  of a  hydrocarbon  treatment  plant in
Libya for euro 160  million  (euro 412  million at  December  31,  2002).  The  decrease of euro 252 million
regards  primarily  the partial  extinguishment  of  guarantees  (euro 220 million)  and the  exchange  rate
differences  (euro 32  million);  (iv)  performance  guarantees  given in the period  (euro 104  million) on
behalf of Uni&#243;n  Fenosa SA and Uni&#243;n  Fenosa Gas SA (50% Eni).  These  guarantees  were given in relation to
contractual  commitments  related  to the  results  of  operations  of  Uni&#243;n  Fenosa  Gas SA;  (v)  secured
guarantees of euro 77 million,  relate to  mortgages,  liens and  privileges  granted to banks in connection
with loans to  affiliated  and  consolidated  companies  (the same amount as of December  31,  2002).  As of
December 31, 2003, the underlying  commitment  covered by such guarantees was euro 1,698 million (euro 1,738
million as of December 31, 2002).<BR>
Guarantees  given on behalf of  consolidated  companies of euro 10,984  million  (euro 10,306  million as of
December 31, 2002)  consist  primarily  of: (i) a guarantee of euro 4,894 million (euro 4,800 as of December
2002) given by Eni SpA to Treno Alta  Velocit&#224; - TAV SpA for the proper and timely  completion  of a project
relating  to the  Milano-Bologna  train  link by the  Consorzio  Cepav  Uno;  consortium  members  gave  Eni
liability of surety letters and bank guarantees  amounting to 10% of their  respective  portion of the work;
(ii) guarantees  given to third parties  relating to bid bonds and performance  bonds for euro 2,841 million
(euro 1,853  million as of December  31,  2002).  The  increase of euro 988 million  regards  primarily  the
Oilfield  Services,  Construction  and  Engineering  segment (euro 755 million) and new guarantees  given on
behalf of Eni Gas &amp; Power LNG  Australia  BV in relation to the  construction  of a gas  pipeline  (euro 165
million);  (iii)  hydrocarbon  development  activities  for euro 1,186  million  (euro  1,139  million as of
December 31, 2002);  (iv) VAT  recoverable  from tax  authorities for euro 1,113 million (euro 1,062 million
as of December 31, 2002);  (v) insurance  risk for euro 379 million  reinsured by Eni (euro 1,049 million as
of December  31,  2002).  The  decrease of euro 670  million  regards  essentially  the  non-renewal  of the
previous  guarantees.  The  underlying  commitment  covered by such  guarantees was euro 7,930 million as of
December 31, 2003 (euro 8,795 million as of December 31, 2002).<BR>
Other  guarantees  given to third  parties for euro 464 million  (euro 211 million as of December  31, 2002)
regard essentially guarantees given by Eni on behalf of subsidiaries.  In particular,  Eni gave to banks and
other  financing  institutions on the behalf of Spanish  Egyptian Gas Co SAE, a company  controlled by Uni&#243;n
Fenosa Gas SA,  (euro 238  million) and  performance  guarantees  given on the behalf of Uni&#243;n Fenosa SA and
its  subsidiaries  in  relation  to  contractual  commitments  related  to  the  results  of  operations  of
subsidiaries of Uni&#243;n Fenosa Gas SA (euro 101 million).</FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="2">
<TR>
      <TD colspan=2>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Other commitments</B><BR>
Other commitments and potential risks consist primarily of: </FONT> </TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">-</FONT></TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    Obligations  for  purchases  and sales of  investments  of euro 3,596 million and euro 174 million as of
    December 31, 2002 and 2003,  respectively.  Obligations regard primarily the concession of a call option
    for the purchase by Erg SpA of a 28% share of Erg Raffinerie  Mediterranee Srl for euro 100 million (the
    same amount as of December 31, 2002). The euro 3,422 million  decrease is primarily  related to: (i) the
    conclusion of the Public Offering of Italgas shares (euro 2,550  million);  (ii) the  extinguishment  of
    commitments  to Uni&#243;n  Fenosa SA for the  acquisition  of the 50% of Uni&#243;n  Fenosa  Gas SA  through  the
    increase of share capital (euro 440 million);  (iii) the  extinguishment of obligations for the purchase
    of 100% of the Norwegian company Fortum Petroleum AS (now Eni Norge AS) (euro 400 million).
</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">-</FONT></TD>
     <TD><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    Commitments of euro 379 million (euro 441 million as of December 31, 2002)  primarily  related to: (i) a
    memorandum  of intent  signed  with the  Basilicata  Region  whereby  Eni has agreed to invest,  also on
    account of Enterprise SpA, euro 217 million in the future in connection with Eni&#146;s  development  plan of
    oil fields in Val d&#146;Agri (euro 206 million as of December 31,  2002);  (ii)  agreements  for the area of
    Porto Marghera between Syndial SpA and various  government  entities,  employee and trade groups whereby
    Syndial has  committed  to invest  approximately  euro 149 million  (euro 223 million as of December 31,
    2002) in order to further develop the chemical  segment and protect the environment  with respect to the
    Porto Marghera plant.
</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">-</FONT></TD>
     <TD><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    Risks of euro 902 million (euro 1,015 million as of December 31, 2002) are  primarily  associated  with:
    (i) contractual  assurances given to acquirors of certain investments and businesses of Eni for euro 400
    million (euro 393 million as of December 31, 2002);  (ii) potential  risks  associated with the value of
    assets of third  parties  under the custody of Eni for euro 317 million (euro 431 million as of December
    31, 2002). The euro 114 million  decrease  regards  primarily the decrease in natural gas volumes stored
    by Stoccaggi  Gas Italia SpA (euro 78 million);  (iii)  environmental  damages for euro 137 million (the
    same amount as of December 31, 2002);  (iv) tax  proceedings  for euro 18 million (euro 44 million as of
    December 31, 2002).
</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">-</FONT></TD>
     <TD><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Obligations for certain  long-term gas supply  agreements  entered into by Eni. Such  agreements,  which
    contain  take-or-pay  provisions,  are included in Item 4 - Description of the Company - Gas &amp; Power and Item 5 - Contractual
obligations, which is considered an integral part of these Notes.</FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">-</FONT></TD>
     <TD><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">Non-quantifiable  risks related to  contractual  assurances  given to acquirors of  investments  against
    certain  unforeseeable  liabilities  attributable to tax, state welfare  contributions and environmental
    matters  applicable  to periods  during which such  investments  were owned by Eni.  Eni  believes  such
    matters will not have a material adverse effect on its consolidated financial statements.</FONT></div></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Legal proceedings<BR></B>Eni
is a party to a number of civil actions and administrative proceedings arising in the
ordinary course of business. Based on information available to date, and taking account
of the existing risk reserves, Eni believes that the foregoing will not have an adverse
effect on Eni&#146;s consolidated financial statements. The following is a summary of
significant legal matters in which Eni is involved; except for some different
indications, no provisions have been made for legal proceedings as Eni believes that
losses are not probable. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Judicial or
arbitration proceedings</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Syndial SpA (former
EniChem SpA) - Serfactoring SpA<BR></I>In 1991, Agrifactoring SpA commenced proceedings
against Serfactoring SpA, a company 49% owned by the former Serfi SpA now Sofid SpA,
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) now merged into EniChem SpA) and Terni Industrie Chimiche SpA
(merged into Agricoltura SpA (in liquidation), that has been merged into EniChem 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 at 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 40 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 favour of Agricoltura, to be determined following the
decision. Agrifactoring appealed against this decision, and the first hearing of this
proceeding has been scheduled for July 15, 2004. Agrifactoring requested the
cancellation of the decision and the acceptation of all the requests it presented in
the first degree. In particular, after a renewal of the expert evaluation of the case,
Agrifactoring requested the payment of damages for about euro 180 million from
Serfactoring along with the payment of all expense. For the parts of the question that
have not yet been settled, the judge of the Court of Rome has not yet taken its
decision and allowed the parties to present memoranda. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Eni SpA - Syndial SpA
(former EniChem SpA)<BR></I>In 1992, Eni SpA and EniChem SpA initiated an arbitration
proceeding against Montedison SpA and its subsidiaries in relation to guarantees
given by them in connection with the formation of Enimont SpA, a joint venture between
EniChem and Montedison. On March 6, 2003 Eni, EniChem and Edison SpA, the successor of
Montedison, agreed to settle the pending arbitration proceeding. Under the terms of
this agreement Edison accepted to pay EniChem euro 200 million to be paid in four
installments of euro 50 million each, the first one paid on March 6, 2003 and the
remaining to be paid each following year with interest accrued; this delayed
payment is supported by bank guarantees payable on first request (the residual
amount of the receivable was transferred to a factoring company in 2003 with no request vs. Eni). This
settlement concerns expenses paid or accrued by EniChem in previous years. It
does not relate to EniChem&#146;s claim to be indemnified by Edison for any expense
related to damage caused to third parties by the operation of plants and facilities
before Montedison&#146;s contribution in kind, even if claims for such damages occurred
later. These expenses may be incurred by Eni in connection with environmental damages
claimed by the State and related to the Mantova site and any damage that could be
claimed by the State and/or other parties arising out of alleged of specific
environmental damage in the Brindisi and Priolo sites. The settlement of any dispute
is within the jurisdiction of ordinary courts. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Syndial SpA (former
EniChem SpA)<BR></I>In 2002, EniChem was summoned by ICR Intermedi Chimici di Ravenna
Srl before the Court of Milan in relation to a breach of a preliminary agreement for
the purchase of an industrial area in Ravenna. ICR requested a payment of compensatory
damages for approximately euro 46 million, of which euro 3 million are compensatory
damages and euro 43 million are for loss of profits. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Snamprogetti SpA<BR></I>In
December 2002, Snamprogetti SpA made a request for an arbitration proceeding
against Fertilizantes Nitrogenados de Venezuela &#150; Fertinitro CEC &#150; to the
International Chamber of Commerce of Paris. Snamprogetti asked: (i) the issue of
the Final Acceptance Certificate of the plant in Jose, Venezuela, and in return, the
Stand-by Letter of Credit it provided to Fertinitro; (ii) the payment of
three installments each of approximately dollar 22 million, for the concession of
licences for the use of Fertinitro technologies; (iii) a decision regarding the 164
claims made by Fertinitro and, particularly, an assessment of work in guarantee
imputable to Snamprogetti and its amount; (iv) the counterclaim for damages and
costs suffered by Snamprogetti as a result of the behaviour of Fertinitro.
Fertinitro requested, as counterclaim, the payment of an undetermined amount, not
inferior to dollars 50 million (plus interest accrued on claims) for alleged breach
of contract. Snamprogetti made a provision to risk reserves with regards to this legal
proceeding. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Tax Proceedings</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Italic" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Eni SpA</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Agip SpA (merged into
Eni SpA in 1997)  received four formal  assessments  from the Italian tax  authorities
that claimed that its income in 1989,  1990,  1991 and 1992 had been  understated  for
income tax  purposes. These assessments  concern an alleged global understated  amount of
euro 196 million,  determined by marking downward and upward  adjustments  to the prices
of certain  petroleum  products  that Agip sold to or bought from other Eni companies.
 All these  assessments  were judged as unfounded by the Provincial Tax Commission of
Milan.  The appeals of the tax authorities  were rejected by the Regional Tax Commission
of Milan or were given  up by  the  Italian  tax  authorities.  The  decision  of  the
 appeal  proceedings,  because  of the termination  of the  appeals or because of the
 decision of the tax  authorities  not to  continue,  must be considered  final without
 expense for the company.  With a decision  dated May 7, 2001 the  Provincial  Tax
Commission of Milan revoked the formal  assessment  against Agip SpA concerning  income
 understatement  for 1994, for an improper use of loss  carryforwards.  The Italian tax
authorities  appealed the decision to the Regional  Tax  Commission,  which  reviewed
 the  case  on May  19,  2004.  During  the  discussion  the tax authorities,
 considering  the outcome  favourable to Eni of the 1992  assessment,  acknowledged  the
proper behaviour of Agip. Eni is waiting for the final ruling that is necessary to close
the issue. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With a decree dated
December 6, 2000 the Region of Lombardia  decided that natural gas used for  electricity
generation is subject to an additional  regional  excise tax in relation to which Snam
SpA (merged in to Eni SpA in 2002) will  substitute the tax  authorities  in its
collection  from  customers.  Given  interpretive uncertainties,  the same decree
provides the terms within which  distributing  companies are expected to pay this excise
tax without  paying any penalty.  Snam SpA and the other  distributing  companies of Eni
believe that natural gas used for  electricity  generation  is not subject to this
 additional  excise tax. For this reason,  an official  interpretation  has been
 requested  to the  Ministry of Finance and  Economy.  With a decision of May 29, 2001,
the Ministry  confirmed  that this  additional  excise tax cannot be applied.  The Region
 decided  not to revoke its decree and Snam took  appropriate  legal  action.  On the
basis of action carried  out by Snam,  the  Council  of State  decided  on  March  18,
 2002  that the  jurisdiction  of the Administrative  court did not apply to this  case.
 In case the  Region  should  request  payment,  Eni will challenge this request in the
relevant  Court.  The Lombardia  Region decided with regional Law 27/2001 that no
additional  tax is due from January 1, 2002 onwards,  but still  requested the payment of
the  additional taxes due before that date. The period of foreclosure  for the formal
 assessment of the payment is up until five years, so it is possible that payment will be
requested until December 31, 2006. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2003, the
Customs  District of Taranto sent 147 formal  assessments  and amendments to bills of
entry for  finished  products  and goods and semi  finished  products  produced by the
Eni  refinery of Taranto in 2000,  2001 and 2002 to Eni SpA, as the successor  entity of
AgipPetroli  SpA following its merger into Eni. The  notification  regards  euro 24
million of customs  duties not paid by the company  because the imported products were
not yet finished goods,  but were destined to processing,  for which the customs tariff
allows exemption.  The formal  assessment  does not  contain  the  determination  of any
 administrative  penalties forecasted  by customs  rules.  The penalty  can be from one
to ten times the amount of taxes not paid.  The notification  is based on the  fact  that
the  company  does not have the  administrative  authorization  to utilize the customs
 exemption.  Although the Customs  Agency,  with the Circular  20/D/2003 dated April 16,
2003,  considered the customs  declaration  presented and accepted by the Customs  Agency
 equivalent to the administrative  authorization (a procedure  followed by AgipPetroli
SpA for years),  the Customs District of Taranto  requested  to be  presented  with a
specific  authorization  to  utilize  the  exemption,  given in November 2002. With
another decree on February 24, 2003 the same District  revoked the  authorization  given
in November  2002. Eni presented an appeal to the  Administrative  Court of Puglia,
 still  pending,  and on June 11, 2003 obtained the  suspension of the revocation of the
District&#146;s  action.  The company,  believing it acted properly pursuant to Circular
 20/D/2003,  started a proceeding for an  administrative  resolution, according  to the
 customs  rules.  The  company  asked the  Regional  Director of Customs of Puglia for
the annulment of the received  assessments as a measure of  self-protection.  The company
is still waiting for a decision of the Regional Director,  that, if it is negative,  will
be appealed against the corresponding tax jurisdiction.  On March 12,  2004 the Comando
 Nucleo  Regionale  Polizia  Tributaria  of Puglia  notified a verbal action of
 observation  to the company.  In this action there is an alleged  offence of smuggling
and falsification  of accounts  for the same  imports,  already  subjected to the
 previous  assessments  of the Customs  District of Taranto and other  occurrences
 between  January  1999 and  February  2003.  The verbal action  made by a Fiscal
 Officer,  sent to the Public  Prosecutor  in the Court of  Taranto,  reclaims  the
omitted  payment of customs for euro 26 million.  For the offence of smuggling,  there is
a penalty from two to ten  times  the  amount of tax not paid.  The  notification  is
based on the same lack of  administrative authorization,  already  contested  by the
 Customs  District  of Taranto  and to the  storage  of  imported products  together with
ones obtained by the refinery (Eni believes this so-called  &#147;promiscuity of storage&#148;is
allowed by the Circular 20/D/2003 of the Customs Agency). </FONT></P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Snam Rete Gas SpA</I><BR>&nbsp;&nbsp;&nbsp;&nbsp;With
Regional Law of March 26, 2002, the Sicilia Region introduced an environmental tax
upon the owners of primary pipelines in Sicilia (i.e. pipelines operating at a
maximum pressure of over 24 bar). The tax was payable as of April 2002. In order to
protect its interests, Snam Rete Gas filed a claim with the European Commission,
aimed at opening a proceeding against the Italian Government and the Tax
Commission of Palermo. The Authority for Electricity and Gas, although acknowledging
that the tax burden is an operating cost for the transport activity, subjected
inclusion of the environment tax in tariffs to the final ruling on its legitimacy by
relevant authorities. Therefore, for the 2002-2003 thermal year with decision
No.146/2002 and for the 2003-2004 thermal year with decision No. 71/2003, the Authority
published two sets of tariffs: one, in force, that does not take into account the tax,
and the second one including it, that will be automatically applied with retroactive
effect should the tax be judged legitimate. On September 10, 2002, Snam Rete Gas
filed a claim with the Regional Administrative Court of Lombardia requesting the
immediate application of tariffs including the tax. With the ruling of December 20,
2002, the court judged the tax at variance with European rules and therefore did
not accept Snam Rete Gas&#146;s claim. In December 2002, Snam Rete Gas suspended payments
based on authoritative opinion of legal counsel and the above Court ruling Payments
effected until November 2002 totaled euro 86.4 million. In January 2003 the Sicilia
Region presented an appeal to the Council of State against the ruling of the
Regional Administrative Court of Lombardia for the part that states the variance of
the regional law with European rules. On December 16, 2003, the European Commission
judged the tax instituted by the Republic of Italy, through the Sicilia Region, to be
in contrast with European rules and with the cooperation agreement between the
European Economic Community and the Peoples Democratic Republic of Algeria; the
European Commission also stated that such environmental tax is in contrast with the
common customs tariff because it modifies the equality of customs expenses on
commodities imported from third countries and could create a deviation in trade such
countries and a distortion in access and competition rules. The Commission
requested the Italian Government to present its observations about the argument.
With a decision dated January 5, 2004, the Provincial Tax Commission of Palermo
declared the environmental tax of the Sicilia Region illegitimate because it is in
contrast with European rules and therefore accepted Snam Rete Gas&#146;s claim for the
repayment of the first installment of euro 10.8 million already paid in April 2002,
to the Sicilia Region. On May 4, 2004, the Sicilia Region repaid the first
instalment. On April 2, 2004 the Sicilia Region presented recourse to the Regional
Tax Commission at Palermo. Snam Rete Gas started the necessary actions to obtain
reimbursement of fixed tax payments already paid in April 2002 (euro 75,3 million).
The Tax Commission of Palermo has yet to render its decision. A hearing for the discussion of this
claim has been set at October 2, 2004. In any case Snam Rete Gas
will not have to suffer any adverse financial consequence from the outcome of
this dispute: if the tax is considered illegitimate in the court of law, the company
will have the right to the restitution of the amounts already paid; whereas, in
case the tax is confirmed, Decisions No. 146/2002 and 71/2003 of the Authority already
provide for automatic adjustment of natural gas tarffs to account for this tax with
retroactive effect. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Environment</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Eni SpA<BR></I>In 1997,
Grifil SpA summoned AgipPetroli SpA (merged in Eni SpA in 2002) before the Court of
La Spezia. Grifil requested the payment for the remediation of a polluted land parcel
part of the La Spezia refinery (which was closed in 1985), and sold to it in 1996 by
Italiana Petroli SpA, later merged in AgipPetroli SpA. The claims for these damages
amount to euro 103 million. At the end of 2002 Grifil and AgipPetroli reached an
agreement under the terms of which AgipPetroli had to pay half of the clean-up
costs, which were set by an independent appraisal to euro 19 million, to a maximum of
euro 9.5 million; Grifil in turn had the obligation to remediate the polluted soil and
to renounce any claims against Eni. Grifil did not execute this obligations to
remediate the polluted soil; however, maintaining the possibility of
precautionary requests and claims against Grifil, Eni decided to remediate the
polluted soil with the combined aid (for 13% of the costs) of a company interested in
developing the parcel of land. The first action promoted by Grifil before the
Court of La Spezia is still pending. On January 7, 2004 the Municipality of La
Spezia put Eni in possession of the area and from that date Eni started remediation
works. Eni obtained the conservative seizure of Grifil&#146;s land parcel, up to a
maximum value of euro 19 million. With two administrative measures, on December 2,
2003 and January 13, 2004 respectively, the Court of Genova declared legitimate the
right of Eni, based on the contract stipulated between Italiana Petroli and Grifil,
to claim the payment of all pollution expenses that Eni will incur as Grifil did not
fulfill its responsibilities. As for the value attributable to the conservative
seizure of Grifil&#146; s land parcel (up to a value of euro 19 million), the Court
specified that Eni must file the contracts for the remediation work with the
court, in which the amounts paid are recognized. The contract with an
international company specialized in remediation was signed on April 15, 2004 and
immediately presented to the Court. After further sutdies of the land parcel, this
company informed Eni that the remediation works are expected to cost significantly more
than previously estimated. Eni is evaluating this new event. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 1999, the public
 prosecutor of Gela started an investigation  concerning the activity of the of Refinery
of Gela in order to ascertain  alleged soil and sea  pollution  caused by the discharge
of pollutants by the refinery.  In November  2002,  &#147;Italia  Nostra&#148; and the  association
 &#147;Amici della Terra&#148; filed civil claims within this  proceeding  and requested the
payment of damage claims for a total of euro 15,050  million.  In July 2003,  the
relevant  Court  decided for the  transmission  of the  inquiries to the public
 prosecutor, recognizing  a  violation  of article  440 of the penal code  (water and
food  substances  corruption).  The public  prosecutor  arranged a  preliminary  hearing
for November 26, 2004 with the charge of article 440 of the penal code. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2000, the public
 prosecutor of Gela started an  investigation on alleged  prohibited  emissions from the
refinery of Gela,  which are  purported to have had  negative  effects on the health of a
number of citizens of Gela,  and on a lack of  declaration  of such  emission in
 violation of  Presidential  Decree No. 203 of 1998. The  investigation  brought an
action for events  registered from 1997. The  Municipality of Gela, the Province of
 Caltanissetta  and others filed civil claims in this  proceeding  and  requested the
payment of compensatory  damages for a total of euro 878  million.  The  judgment of
first  degree  before the Court of Gela is still pending. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In March 2002 the
public  prosecutor of Siracusa  started an  investigation  concerning  the activity of
the refinery of Priolo for  intentional  pollution of water used for human  consumption
and disposed a technical opinion,  not yet concluded,  to ascertain an alleged
 possibility of infiltrations of refinery oil products into the deep water-bearing
 stratum used for human consumption  purposes in the Priolo area. The proceeding is still
in the preliminary  investigation  phase. In consideration of the complexity of the
 investigation, a  qualified  company  has been  given the task to verify the cause,  the
 origin and the  extension  of the infiltration.  For protective purposes,  actions have
been taken to: (i) create safety measures and clean-up all of the polluted area;  (ii)
 reallocate  water wells in an area more distant from the  industrial  site; and (iii)
install a  purification  system for drinkable  water.  With a decision of June 1, 2004
the seizure was lifted on the storage  tanks that had been seized on April 17, 2003,
 except for five storage tanks that are still under seizure. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In June 2002,  in
connection  with a fire in the refinery of Gela, a penal  investigation  began
 concerning arson,  environmental crimes and crimes against the enviroments;  on May 12,
2004 the first hearing was held for an immediate decision. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2002,  the public
 prosecutor of Gela started a penal  investigation  concerning  the refinery of Gela to
ascertain the quality of deep water in the area of the refinery.  On October 27, 2003 the
 prosecutor  asked to ascertain the state of the refinery&#146;s  storage tanks and if there
are possible  infiltrations of refinery oil  products  into the deep  water-bearing
 stratum,  due to leakage  from some  tanks.  The  investigation concerns the
 environmental  rules about the pollution of water and soil and illegal treatment of
liquid and solid  waste  materials.  With a  previous  decree  dated  November  3,  2003,
 the  Court  for  preliminary investigation,  in  agreement  with a request of the public
 prosecutor  of Gela,  had  already  ordered the preventive  seizure  of 92 storage
 tanks.  The decree  stopped  the  activity  of the  refinery  of Gela in November 17,
2003  following  the inquiry  phase and many  investigations,  inspections  and  analyses
 were conducted by experts  appointed by the judge for the preliminary  investigation.
 These experts  declared no reasonable  loss of products from storage  tanks.  Afterward,
 42 storage tanks were reopened in January 16, 2004 and this allowed to restart the
 activity of the refinery on January 19, 2004.  With a decision of June 7, 2004, 23 more
tanks were reopened. Only 27 tanks are still under seizure. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In relation to the
 investigations  concerning  a  subsidence  phenomenon  allegedly  caused by  hydrocarbon
exploration,  on May 21,  2004,  following  the  decision  of the  Court of  Rovigo,  the
 Nucleo  Operativo Ecologico  dei  Carabinieri  of Venice  placed  under  preliminary
 seizure the Dosso degli  Angeli,  Angela Angelina  &#150; Ravenna  Mare Sud  fields  and the
 related  wells  and  platforms.  On June 10,  2004 the Court responded  to the claim
filed by Eni and lifted the seizure of the Angela  Angelina &#150; Ravenna Mare Sud field and
related wells and platforms.<BR>On February 5, 2003,  a seizure had already  been applied
to the  Naomi/Pandora  platform,  the Naomi 4 Dir, Naomi 2 Dir and 3 Dir - Pandora 2 Dir
wells,  and the  underwater  pipeline  for the  transportation  of gas production to the
Casalborsetti facility.<BR>Eni  believes  to  have  always  acted  in  full   compliance
  with  existing  laws,   under  the  required authorizations.  Taking account of the
 observations  of the consultants of the Court of Rovigo on which the public  prosecutor
 based  his  case,  Eni  constituted  an  independent  and  interdisciplinary  scientific
commission,  composed of  prominent  and highly  qualified  international  experts of
 subsidence  caused by hydrocarbon  exploration,
 with the aim of verifying the size and the effects and any  appropriate  actions to
reduce or to neutralize  any  subsidence  phenomenon in the Ravenna and North  Adriatic
 area both on land and in the sea.  The  commission  produced a study  which  denies the
possibility  for any risk for  human  health  and for  damage to the  environment.  It
also  states  that no example is known  anywhere in the world of  accidents  that caused
harm to the public  caused by  subsidence induced by hydrocarbon  production.  The study
also shows that Eni employs the most advanced  techniques for the monitoring, measuring
and control of the soil. The hearing is set on November 4, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just Italic" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Polimeri Europa SpA</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2002, the public
 prosecutor of Gela started an  investigation  in order to ascertain  alleged  pollution
caused by emissions  of the  refinery of Gela,  owned by Polimeri  Europa SpA,  Syndial
SpA (former  EniChem SpA) and  Raffineria di Gela SpA. An inquiry phase was closed on
July 2, 2003.  Some local public  entities, environmental  NGOs and  landowners  will act
as injured  party.  At the end of 2003, a second inquiry phase commenced to ascertain
which sort of emissions had eventually  produced the alleged  pollution caused by the
refinery of Gela. In 2002, the public  prosecutor of Gela started a criminal action,
 which is at the moment in the inquiry phase, in order to ascertain  alleged  illegally
 discharged  effluents  produced by the Gela plant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On March 5, 2003 a
criminal  action  started  before  the Court of Gela in  relation  to an alleged  illicit
treatment  of FOK oil  produced by the  ethylene  plant in Gela&#146;s  refinery.  The case
will be  discussed in December  2003. WWF Italia,  Italia Nostra and  Associazione  Amici
della terra acted as civil parties.  For this proceeding the first two associations
 requested  environmental damages of euro 50 million each and the third association
requested euro 500 million. </FONT></P>





<!-- MARKER FORMAT-SHEET="Times Just Italic" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Syndial SpA (former
EniChem SpA)</I></FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 1992, the Ministry
of Environment  summoned  EniChem SpA and Montecatini SpA before the Court of Brescia.
The Ministry requested,  primarily,  to condemn them to environmental  remediation for
the alleged pollution caused by  Mantova&#146;s  plant from 1976 until 1990,  and
 provisionally,  in case there is no  possibility  to remediate,  to condemn them to the
payment of  environmental  damages.  The amount is going to be determined during the
 proceeding,  but it will not be  inferior to euro 136  million,  or  determined  by the
judge as compensatory  liquidation.  EniChem  acquired  Mantova&#146;s plant in June 1989,
 while it was being operated by Enimont. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 1997, an action was
commenced  before the Court of Venice  concerning the criminal charges brought by the
Venice public  prosecutor for alleged  mismanagement of the Porto Marghera plant starting
in the 1970s until 1995 and for the  alleged  pollution  and health  damage  resulting
 therefrom.  In most cases such  charges relate to a period in time when the plant was
managed by companies not owned by Eni.  With  reference to the 25 years  period  examined
in the  proceeding  (1971-1995)  EniChem  managed the CVM-PVC  plant from 1987 to 1993,
 while land parcels and other plants were managed by EniChem only from 1990 onwards.  The
inclusion of Eni SpA (together  with EniChem SpA,  Montedison  SpA and  Montefibre  SpA)
as defendant  for  environmental damages  and  crimes  related to  injuries  and death of
persons  that had  worked  near the Porto  Marghera petrochemical  plant is based on the
fact that Eni SpA is a  shareholder  of  companies  operating  in Porto Marghera,  rather
than on Eni&#146;s participation in managing such companies.  Plaintiffs  (Italian
 Government, Veneto Region,  Venice Province,  three  municipalities and other 69
persons) formulated their counterclaims for  damages  in the  hearing  at the end of June
 2001.  Plaintiffs  did not  specify  which  damages  were effectively  caused by the
alleged  crime;  they  submitted to the Court the decision  about the division of the
damages  between the  defendants.  Damage payments were requested for an amount of euro
511 million plus compensatory  liquidation of  environmental  damage,  and,
 provisionally,  for a total amount of euro 2,035 million in case the judge  should not
 identify  evidence for the entire  damage  claimed for each  specific case. The State
Attorney  estimated the cost of environmental  remediation to be euro 36,952 million and
the illicit  profit of defendants to be euro 5,970 million.  Damage  payment has been
 requested  jointly of all defendants.  Only for the  environmental  damages did the
State Attorney  request  individual  payments from each  defendant that would be found
guilty based on their  respective  liability as determined by the Court. Another
defendant entered into a settlement  agreement  agreeing to a payment of about euro 260
million.  On November  2, 2001 the Court of Venice  acquitted  all  defendants.  The
 appeal  against  the  decision  was presented by the public  prosecutor,  the State
Attorney of the Ministry of  Environment  and the Council of Ministers,  5 public
 entities,  12 associations  and other entities and 48 persons.  Damage amounts are the
same as  requested  in the first  instance  with the  exception  of the State  Attorney
 which  accepted the payment  agreed with one of the  defendants  and,  consequently,
 requested  the  payment for  environmental damages only to EniChem.  The damage
 payments  requested  are: (i)  requested by public  entities:  euro 98 million;  (ii)
requested by persons:  euro 14 million;  (iii) requested by associations  and other
entities: euro 4 million  (Legambiente  Nazionale  presented a claim for  damages
 against a civil  Court).  The total damage  payment,  requested  jointly of all
 defendants  with the  exclusion  of the  requests  of the State Attorney,  amounts to
euro 116 million.  The State  Attorney  confirmed  the requests of the first  instance
only  against  the  defendants  EniChem  and Eni and against  the same  entities  with
 respect to their own liabilities.  The total damage payment  amounts to euro 46,997
 million or euro 42,928 million  depending to the criteria  applied for the estimate of
 environmental  damages.  Eni has made a provision to risk reserve for this legal
proceeding. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2000, the public
 prosecutor of Brindisi  started a criminal  action against 68 persons who are employees
or  former  employees  of  various   companies  that  owned  and  managed  plants  for
 the  manufacture  of dichloroethane,  vinyl  chloride  monomer and vinyl  polychloride
 from the early 1960s to date,  managed by EniChem  from  1983 to 1993.  At the end of
 preliminary  investigation  the  public  prosecutor  asked  the dismissal of the case in
respect of the  employees  and the managers of EniChem.  The judge for  preliminary
investigation has not yet given his opinion. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On December 18, 2002
EniChem SpA,  jointly with  Ambiente SpA and European  Vinyls  Corporation  Italia SpA,
was summoned  before the Court of Venice by the province of Venice.  The  province
 requested  environmental damages,  not quantified,  caused to the lagoon of Venice by
Porto Marghera&#146;s plants, which were already the subject  of two  previous  proceedings.
 Subordinately  to the  ascertainment  of  the  illegitimacy  of the requests, European
Vinyls Corporation Italia presented an action for recourse against EniChem and Ambiente. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On January 16, 2003
the Court of Siracusa  issued  personal  cautionary  measures  against some employees of
EniChem SpA and Polimeri Europa SpA. They are accused of illicit  mismanagement  relating
to the production, disposal and treatment of liquid and solid waste  materials and
obtaining  illicit  income.  Polimeri Europa and EniChem,  as injured party,  named their
defense  attorney.  The proceeding is still in the  preliminary investigation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On April 14,  2003 the
 President  of the  Regional  Council of  Calabria,  as  Delegated  Commissioner  for
Environmental  Emergency  in the  Calabria  Region,  started  an  action  against
 EniChem  SpA  related  to environmental  damages for euro 129 million and to financial
and non-financial  damages for euro 250 million (plus interest and  compensation)
 allegedly caused by Pertusola Sud SpA (now merged in EniChem) in the area of Crotone.
 On June 6, 2003 EniChem  appeared  before the court and  requested the rejection of the
damages and, as  counterclaim,  the payment of the total  costs for the  reclaims
 started  earlier.  Recently,  the Province of Crotone entered the proceeding, claiming
environmental damages for euro 300 million. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In March 2004,
 Sitindustrie  SpA, that in 1996 purchased the Paderno  Dugnano&#146;s  plant from Enirisorse
(now merged in Syndial  SpA),  summoned  Syndial SpA before the  Administrative  Court of
Milano,  requesting  to define the  responsibility  of Syndial SpA in the alleged
pollution of soils around the plant and to condemn it to pay necessary  environmental
 damages of reclaiming  action. The legal proceeding is based on articles 2050 and 2043
of the Civil Code. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In May 2003 the
 Minister  of  environment  summoned  Syndial  SpA before  the Court of Turin and
 requested environmental  damages for euro 2,396  million in relation to alleged  DDT
 pollution  in the lake  Maggiore caused by Pieve Vergonte&#146;s plant. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Just B" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Antitrust, EU
Proceedings, and actions of the Authority for Electricity and Gas</B> </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Eni SpA</I><BR>In March
1999, the Antitrust Authority concluded its investigation started in 1997 and: (i)
verified that Snam SpA (merged in Eni SpA in 2002) abused its dominant position in the
market for the transportation and 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 euro 2 million; and (iii) ordered
a review of these practices relating to such abuses. Snam believes it has complied
with existing legislation and appealed the decision with the Regional Administrative
Court of Lazio. On May 26, 1999, stating that these decisions are against Law No.
9/1991 and the European Directive 98/30/CE, this Court granted the suspension of
the decision. The Antitrust Authority did not appeal this decision. The
definition of this dispute is still pending. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>With a decision
 presented  on June 5, 2001,  the Italian  Antitrust  Authority  started an inquiry
 against AgipPetroli  SpA,  Atriplex  SpA  (now  AgipFuel  SpA)  and  other  companies
 for  alleged  limitations  to competition  within the tenders  offered by public
 transportation  companies  in the urban areas of Naples, Turin and Milan for the supply
of gasoline  for  automotive  use in the period  1996-2000.  On March 4, 2003 the
Authority&#146;s  decision was notified.  It has verified violations for all companies
involved and has fined AgipPetroli  and Atriplex euro 118,000.  In May 2003, Eni appealed
 against the decision before the Regional Administrative  Court of Lazio..  The two
Azienda di  Trasporto  of Milan and Turin  (public  transportation companies)   requested
 a  payment  of  damages  to  the  companies  involved  as  the  consequence  of  the
infringements  ascertained by the Authority.  Such request, which has been contested, was
quantified only by the  Azienda  di  Trasporto  of Milan in euro 7 million.  With a
 decision  of May 21,  2004,  the  Regional Administrative  Court of Lazio  rejected the
Eni&#146;s appeal  against the decision of the  Antitrust  Authority and declared the requests
of the transportation companies inadmissible. </FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On February 5, 2003,
Eni filed a claim with the Regional  Administrative  Court of Lazio in Rome  requesting
the  annulment of the measures  taken by the Antitrust  Authority,  on November 21, 2002,
 concerning  Eni&#146;s alleged  violation of competition  rules as a result of an
investigation  commenced on the request of Blugas SpA. The  Authority  judged that Eni
had violated  access rules by entering in 2001 into  contracts  outside Italy with other
 operators  that have  imported  into Italy the  volumes  of  natural  gas  exchanged.
 The Antitrust  Authority  considers  that these  contracts  infringe the rationale of
article 19 of  Legislative Decree No.  164/2000  which defines the limits for natural gas
volumes to be input by single  operators into the national  network.  Given this
 infringing  behaviour,  the lack of clarity of Italian  regulations  and Eni&#146;s
availability to increase the transmission  capacity of gaslines outside Italy, the
Antitrust Authority imposed on Eni a symbolic  fine  amounting to euro 1,000 and
 requested  Eni to submit &#147;a report  indicating measures to be taken to eliminate
 infringing  behaviours  with  specific  attention to the upgrading of the transmission
 network or  equivalent  actions&#148;.  On February  19,  2004,  Eni filed this report in
which the company  stated  its  commitment  to  increase  the  level  of  competition  in
 the  national  gas  market, particularly  the  upgrading  of natural gas import
 pipelines  TAG  (Austria)  and TTPC  (Tunisia),  on the condition  that  construction
 of LNG  terminals  would not be commenced in Italy by third  parties.  With a decision
of March 18, 2004,  notified on March 26, 2004,  the Antitrust  Authority  considered
 the measures suggested  by Eni in its  February  19 report to be not  sufficient  and
 therefore  set a specific  default procedure.  On April 26, 2004, Eni suggested
 integrations and the Authority started a market test to obtain suggestions by other
 operators on this issue.

After the  completion  of the market  test and various  meetings  with the  Authority,  on June 18, 2004 Eni
presented  to the  Authority  a  proposal  through  which  to  comply  with  the  requests  included  in the
Authority&#146;s  decision of November 21, 2002.  The proposal  entails the sale of a total of 9.2 billion  cubic
meters of natural gas at a set price  starting in 2004 through 2008 (2.3 billion  cubic meters for each year
of the  four-year  period) to be  supplied  at Tarvisio at the border  with  Austria  (before  entering  the
national  transmission  network) to be assigned on a pro-rata  mechanism.  In its decision of June 24, 2004,
the  Authority  judged  this  proposal  adequate  to  interrupt  the  effects  of the  infringing  behaviour
highlighted  in the November 21, 2002  decision.  In its June 24, 2004 decision the Authority  also extended
to  October  7,  2004  the  deadline  for  closing  the  procedure  in  order  to  allow  Eni to  prove  the
implementation of its proposal.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Polimeri Europa SpA<BR></I>On
December 12 and 13, 2002, UE officers submitted to inspection Polimeri Europa SpA
with the aim of acquiring documents about the EPDM business of its Styrene and
Elastomers division in relation to alleged agreements of limitations to competition
between producers and suppliers of EPDM. On December 12, 2002, two other legal actions
were notified in the United States: with the first one, the Antitrust Jury of
California summoned the deputy chairman and sales manager of Polimeri Europa Americas
Inc, in relation to the alleged agreements of limitation to competition in EPD segment;
with the second some documents related to investigations about the limitations of the
competition were requested from Polimeri Europa Americas Inc. In USA antitrust
preliminary investigation started on business CR and NBR of the Styrene and
Elastomers division and Polimeri Europa Americas Inc and Polimeri Europa SpA were
summoned as defendants for damages (class action) caused by the following products:
NBR, CR and EPDM. The European Union started an investigation regarding NBR, EPDM,
e-SBR, , s-SBR and BR products. </FONT> </P>


<!-- MARKER FORMAT-SHEET="Times Justify" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Stoccaggi Gas Italia
SpA<BR></I>With decision No. 26 of February 27, 2002, the Authority for Electricity
and Gas determined tariff criteria for modulation, mineral and strategic storage
services for the period starting on April 1, 2002 until March 31, 2006 and effective
retroactively from June 21, 2000. On March 18, 2002 Stoccaggi Gas Italia SpA
(Stogit) filed its proposal of tariff for modulation, mineral and strategic storage
for the first regulated period. With decision No. 49 of March 26, 2002, the Authority
repealed Stogit&#146;s proposal and defined tariff for the first regulated period. Stogit
filed an appeal against both Authority decisions with the Regional Administrative
Court of Lombardia requesting their cancellation. With a decision dated September 29,
2003, that Court rejected the appeal presented by Stogit. On February 3, 2004,
Stogit presented an appeal to the Council of State against the sentence of first
instance. Stogit applied the tariff determined by the Authority. </FONT> </P>


<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Other commitments and risks not included in the balance sheet</B><BR>
Commitments regarding long term natural gas supply contracts stipulated by Eni, which contain take or pay
clauses, are included in &#147;Operating Review - Gas &amp; Power&#148; in the Report of the Directors in the
Consolidated Financial Statement, which is considered an integral part of these Notes. Non-quantifiable
risks related to contractual assurances given to acquirors of investments against certain unforeseeable
liabilities attributable to tax, state welfare contributions and environmental matters applicable to
periods during which such investments were owned by Eni. Eni believes such matters will not have a
material adverse effect on its consolidated financial statements. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Environmental Regulations</B><BR>
Together with other companies in the industries in which it operates, Eni is subject to numerous EU,
national, regional and local environmental laws and regulations concerning its oil and gas operations,
products and other activities, including legislation that implements international conventions or
protocols. In particular, these laws and regulations require the acquisition of a permit before drilling
for hydrocarbons may commence, restrict the types, quantities and concentration of various substances that
can be released into the environment in connection with exploration, drilling and production activities,
limit or prohibit drilling activities on certain protected areas, and impose criminal or civil liabilities
for pollution resulting from oil, natural gas, refining and petrochemical operations. These laws and
regulations may also restrict emissions and discharges to surface and subsurface water resulting from the
operation of natural gas processing plants, petrochemicals plants, refineries, pipeline systems and other
facilities that Eni owns. In addition, Eni&#146;s operations are subject to laws and regulations relating to
the generation, handling, transportation, storage, disposal and treatment of waste materials.
Environmental laws and regulations have a substantial impact on Eni&#146;s operations. Some risk of
environmental costs and liabilities is inherent in particular operations and products of Eni, as it is
with other companies engaged in similar businesses, and there can be no assurance that material costs and
liabilities will not be incurred. Although management, considering the actions already taken with the
insurance policies to cover environmental risks and the provision for risks accrued, does not currently
expect any material adverse effect upon Eni&#146;s consolidated financial statements as a result of its
compliance with such laws and regulations, there can be no assurance that there will not be a material
adverse impact on Eni&#146;s consolidated financial statements due to: (i) the possibility of as yet unknown
contamination; (ii) the results of the on-going surveys and the other possible effects of statements
required by Decree No. 471/1999 of the Ministry of environment; (iii) the possible effect of future
environmental legislation and rules, like the decree No. 367 of the Ministry of environment published in
January 8, 2004, that regards the fixing of new quality standards for aquatic environment and dangerous
substances. The decree modifies completely the actual set of rules, because of the imposition of
qualitative levels, that can be reached only through considerable investments; (iv) the effect of possible
technological changes relating to future remediation; (v) the possibility of litigation and the difficulty
of determining Eni&#146;s liability, if any, as against other potentially responsible parties with respect to
such litigation and the possible insurance recoveries. </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>24 Segment
information</B></FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Segment  information is presented in accordance  with the IAS 14-revised.  Intersegment  sales are conducted
on an arm&#146;s length basis.</FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Information by industry segment<BR>
</B>Segment information relating to the 2002 were reclassified on the basis of the new division of activities.
In particular, &#147;Other activities&#148; included the information of Syndial SpA and its subsidiaries, previously
included in the &#147;Petrochemicals&#148; segment. The information relating to the new segment &#147;Corporate and
financial companies&#148; was re-classified from &#147;Other activities&#148;. Relating to the 2001, only the information
relating to the new segment &#147;Corporate and financial companies&#148; was reclassified because Syndial SpA
conferred its Strategic Chemicals business to Polimeri Europa SpA with effect from January 1, 2002. </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Information by
industry segment</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Top>
     <TD WIDTH=27% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Exploration &amp; Production</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Gas &amp; Power</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Refining &amp; Marketing</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Petrochemicals</B> </FONT> </TD>
     <TD WIDTH=11% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Oilfield Services Construction and Engineering</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other activities</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Corporate and financial companies</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13,960&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,098&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22,083&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,761&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,114&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">476&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">245&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: intersegment sales </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8,430) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(668) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,202) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(471) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(509) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(387) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(145) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales to customers </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,530&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,430&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,881&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,290&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,605&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48,925&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,984&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,672&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">985&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(332) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">255&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(190) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,396&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable assets <SUP>(b)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24,261&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,860&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,420&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,488&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,136&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">174&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">615&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50,954&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unallocated assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,782&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable liabilities <SUP>(c)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,098&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,037&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,345&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,312&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,927&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">323&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">822&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,864&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unallocated liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17,683&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditures </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,276&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,065&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">496&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">361&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">304&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,577&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,251) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(503) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(517) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(251) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(203) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(16) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(30) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(4,771) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">75&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">316&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">493&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(272) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(74) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(33) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(17) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(409) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(811) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,877&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,297&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,546&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,516&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,546&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">705&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">457&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: intersegment sales </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8,795) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(623) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,037) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(746) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(479) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(337) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales to customers </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,082&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,674&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,509&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,770&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,067&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">700&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">120&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47,922&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,175&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,244&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">320&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(126) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">298&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(199) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(210) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,502&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable assets <SUP>(b)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23,686&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,482&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,634&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,821&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,026&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">909&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">319&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52,877&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unallocated assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,931&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable liabilities <SUP>(c)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,764&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,969&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,861&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">631&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,741&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,264&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">844&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17,074&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unallocated liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,383&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditures </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,615&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,313&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">545&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">145&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">232&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">121&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,048&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,884) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(512) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(494) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(231) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(267) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(56) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(60) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,504) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">59&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">138&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">322&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(185) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(37) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(26) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(11) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(10) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(296) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(568) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,746&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16,067&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22,148&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,487&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,306&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,302&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">638&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: intersegment sales </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(8,468) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(450) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(621) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(438) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(897) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(853) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(480) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales to customers </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,278&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,617&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,527&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,049&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,409&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">449&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">158&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51,487&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,746&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,627&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">583&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(176) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">311&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(279) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(295) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,517&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable assets <SUP>(b)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23,433&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15,824&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,025&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,523&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,361&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">864&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">606&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56,636&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unallocated assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,700&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable liabilities <SUP>(c)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,629&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,007&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,835&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">612&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,463&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,183&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">940&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17,669&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Unallocated liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,349&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital expenditures </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,682&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,760&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">730&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">141&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">277&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">141&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,802&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,360) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(567) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(494) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(248) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(271) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(110) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(101) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(5,151) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">110&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">197&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(141) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(20) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(16) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(14) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(374) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(574) </FONT></TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Before elimination of intersegment sales.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes assets directly related to the generation of operating income.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(c)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes liabilities directly related to the generation of operating income.</FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Geographic
financial information</B></FONT></P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><i>Assets and
Investments by geographic area of origin</i></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=36% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Italy&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Rest of&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Africa&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Americas</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Asia&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>EU</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Europe</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>areas</B> </FONT> </TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable assets <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23,513&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,546&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,721&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,653&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,552&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,958&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50,954&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments in fixed and intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,407&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">595&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">249&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,405&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">923&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">923&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">75&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,577&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable assets <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24,524&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,806&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,863&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,122&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,432&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,385&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">745&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52,877&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments in fixed and intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,396&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">546&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">305&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,497&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">721&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,333&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">250&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,048&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Identifiable assets <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27,355&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,690&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,005&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,509&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,921&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,801&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">355&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56,636&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments in fixed and intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,708&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,035&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">334&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,026&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">369&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">795&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">535&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,802&nbsp; </FONT></TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Includes assets directly related to the generation of operating income.</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><i>Sales from
operations by geographic area of destination</i></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italy </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27,244&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23,797&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25,491&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other European Union </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,226&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,450&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,995&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Rest of Europe </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,136&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,712&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,093&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Africa </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,180&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,478&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,854&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Americas </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,169&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,317&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,778&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Asia </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,949&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,154&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,245&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other areas </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>48,925&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>47,922&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>51,487&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>25 Fair value of
financial instruments</B></FONT></P>


<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">In the normal course of its business, Eni utilizes various types of financial instruments. These
instruments include recorded assets and liabilities, as well as items that principally involve off-balance
sheet risk. Information about the fair value of Eni&#146;s financial instruments is presented below. </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2">Marketable securities: the fair values of marketable securities are based upon market value. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Non-current investments carried at cost: such investments are not publicly traded and do not have
quoted market prices. An estimate of fair value has not been made because the amount of the investment
is not significant and the estimation of fair value would require incurring excessive costs. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Current investments: such investments are publicly traded and their fair value is represented by their
market price. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Non-current receivables: the fair values of non-current receivables are estimated based on the
discounted value of future cash flows expected to be paid, considering rates of interest which Eni
could earn on similar credit. The differences between the carrying and market values of non-current
receivables at December 31, 2001 and 2002, excluding tax credits with Italian tax authorities, were not
significant. In relation to tax credits, the interest rate, which has been 1.375% for each six month
period from July 1, 2003 (2.5% in the first half of 2003), is aligned with the average market rate
trend. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Current receivables: the carrying values of current receivables approximate their fair value
considering the short period that incurs between the concession and their expiration date. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Bonds payable, current portion of long-term debt and long-term debt: the fair values of bonds payable
and long-term debt, including current maturities, are estimated based on the discounted value of future
cash flows. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Short-term debt: the carrying value of short-term debt approximates fair value because of the short
period of time between the origination and maturity of the borrowings. </FONT>
</div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div align=justify><FONT SIZE="2">Non-current payables: the fair values of non-current payables are estimated based on the discounted
value of future cash flows. The differences between the carrying and market values of non-current
payables at December 31, 2002 and 2003 were not significant. </FONT>
</div></TD></TR>
</TABLE>

<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=center colspan=2><HR size=1></TD>
     <TD> </TD>
     <TD ALIGN=center colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=59% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Carrying</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Fair&nbsp;</B> </FONT> </TD>
     <TD WIDTH=1%> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Carrying</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Fair&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value&nbsp;</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Marketable securities and current investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,519&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,538&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,300&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,317&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bonds and long-term debt, including current maturities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,530&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,002&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,826&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,099&nbsp; </FONT></TD></TR>
</TABLE>

<BR>




<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD width=3%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD width=97%><div align=justify><FONT SIZE="2">Derivative financial instruments: the fair value of derivatives generally reflects the estimated amounts
that Eni would pay or receive to terminate the contracts at the reporting date, thereby taking into
account the current unrealized gains or losses of open contracts. Dealer quotes or appropriate pricing
models have been used to estimate the fair value for Eni&#146;s derivatives. The carrying value, compared with
the fair value, represents the amount of interest rate and exchange rate differentials recognized but not
yet paid at year-end. For foreign exchange derivatives related to monetary assets and liabilities, the
carrying value also represents the adjustment using current exchange rates at year-end. The difference
between carrying value and fair value is therefore not significant. </FONT>
</div></TD></TR></table>


<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=center colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=center colspan=2><HR size=1></TD>
     <TD> </TD>
     <TD ALIGN=center colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Carrying</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Fair</B> </FONT> </TD>
     <TD WIDTH=1%> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Carrying</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Fair</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value</B> </FONT> </TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Value</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Interest rate derivatives: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">101&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">72&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(18) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(129) </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(17) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(117) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Foreign exchange derivatives: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">333&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">244&nbsp; </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">175&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">289&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(298) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(74) </FONT></TD>
     <TD> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(104) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(71) </FONT></TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>26 Transactions
with related parties</B><BR>
According  to rules  issued by Consob,  the Italian  Stock  Exchange  Commission  on  February  20, 1997 No.
97001574 and subsequent amendments, the following is a description of transactions with related parties.<BR>
In the  ordinary  course of its  business  Eni enters into  transactions  concerning  the exchange of goods,
provision of services and financing with affiliated companies and  non-consolidated  subsidiaries as well as
with entities owned or controlled by the  Government.  All such  transactions  are conducted in the interest
of Eni companies.<BR>
Relevant  transactions  carried out with entities  controlled by the Italian  government are only those with
Enel, the Italian National Electric Utility.<BR>
The  following is a  description  of trade and  financing  transactions  with related  parties for the years
2003, 2002 and 2001.</FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2003 Trade and
other transactions</B></FONT></P>







<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD ALIGN="CENTER" colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31.12.2003</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=4><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=4><HR size=1></TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Costs</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Revenues</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2></TD>
      <TD ALIGN="CENTER" colspan=2></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="36%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Receivables</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Payables</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Guarantees</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Commitments</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Goods</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Services</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Goods</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Services</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliated companies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Oil Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Albacom SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Azienda Energia e Servizi SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bayernoil Raffineriegesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">713&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bernhard Rosa Inh. Ingeborg Plochinger GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">41&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">96&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bronberger &amp; Kessler Handelsgesellschaft U. </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gilg &amp; Schweiger GmbH &amp; Co Kg </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">135&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Erg Raffinerie Mediterranee Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">567 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">210&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gruppo Distribuzione Petroli Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">73&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Karachaganak Petroleum Operating BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">183 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrobel Belayim Petroleum Co </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">78&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">138&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Promgas SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">230 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">250&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Raffineria di Milazzo ScpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">161&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">58&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Serfactoring SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">128&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Supermetanol CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">59 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Superoctanos CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">142 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Austria Gasleitung GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">171&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Europa Naturgas Pipeline GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transitgas AG </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Uni&#243;n Fenosa Gas SA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">36&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>245&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>550&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>221</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>100</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,018</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,846&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>887&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>255</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non consolidated subsidiaries</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni BTC Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">120&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Eni Gas BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">91&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">191&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">160 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">48&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>128&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>239&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>302</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>149&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>30</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>373&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>789&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>523</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>100</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,022</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,995&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>895&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>285</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Entities owned or controlled by the Government</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Enel </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">261&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,465&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">341 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>634&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>791&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>523</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>100</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,022</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,026&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,360&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>626</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Each individual amount included herein does not exceed euro 50 million.</FONT></TD></TR>
</TABLE>

<BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Engineering,  construction and maintenance  services were acquired from the Cosmi Holding Group,  related to
Eni  through  a member  of the Board of  Directors,  for a total of  approximately  euro 18  million  and 29
million in 2002 and 2003, respectively.
Most significant transactions concern:
      </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    specialized  services in upstream  activities to Petrobel Belayim Petroleum Co,  Karachaganak  Petroleum
    Operating  BV, Eni Oil Co Ltd and Eni Gas BV;  services  are  invoiced on the basis of  incurred  costs;
    exclusively with Karachaganak  Petroleum  Operating BV, the providing of services by Eni&#146;s  construction
    and drilling activity,  and with Eni Gas BV, the unsecured guarantees in relation to the construction of
    a hydrocarbon treatment plant in Libya and receivables and payables for investment activities;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
   communication services, data transmission and concessions of optical fibres with Albacom SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
   transportation and distribution activities with Azienda Energia e Servizi SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
   sale of petrochemical products,  supply of crude oil refining activities and fuel additive purchase from
    Bronberger &amp; Kessler  Handelsgesellschaft  U. Gilg &amp; Schweiger GmbH Co Kg,  Bernhard Rosa Inh.  Ingeborg
    Plochinger  GmbH,  Gruppo  Distribuzione   Petroli  Srl,  Bayernoil   Raffineriegesellschaft   GmbH  and
    Superoctanos CA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
   acquisition  of natural  gas  transport  services  outside  Italy from Blue  Stream  Pipeline  Co BV and
    services for the completion of a pipeline between Turkey and the Russian Federation;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
   acquisition of refining services from Raffineria di Milazzo ScpA and Erg Raffinerie  Mediterranee Srl on
    the basis of incurred  costs for  Raffineria di Milazzo ScpA,  and general  conditions  applied to third
    parties for Erg Raffinerie  Mediterranee Srl; the concession to Erg SpA of an option for the purchase of
    the 28% of Erg Raffinerie Mediterranee Srl;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    sale and purchase of natural gas outside Italy with Promgas SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    factoring activities with Serfactoring SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    acquisition  of natural  gas  transport  services  outside  Italy from Trans  Austria  Gasleitung  GmbH,
    Transitgas AG and Trans Europa Naturgas Pipeline GmbH,  transactions are regulated on general conditions
    applied to third parties;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    performance  guarantees  given on behalf of Uni&#243;n Fenosa Gas SA in relation to  contractual  commitments
    related to the results of operations;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    guarantees given in relation to the construction of an oil pipeline on behalf of Eni BTC Ltd;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    acquisition of natural gas transport  services  outside Italy from  Transmediterranean  Pipeline Co Ltd;
    transactions are regulated on the basis of tariffs,  which permit the recovery of operating expenses and
    capital employed.
     </FONT></div></TD></TR>
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Transactions  with Enel concern the sale and  transportation  of natural gas,  sale of fuel oil and sale and
purchase of electricity.
      </FONT> </div></TD></TR>
</table>



<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2003 Financing
transactions</B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% align=center>
<TR>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Receivables</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Payables</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Guarantees</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Charges</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Gains</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliated companies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Albacom SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">54&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">88&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">725&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EnBW - Eni Verwaltungsgesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">275&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Raffineria di Milazzo ScpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">113&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Serfactoring SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Austria Gasleitung GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">399&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>553&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>69</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,305&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>16</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>51&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non consolidated subsidiaries</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">241&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">90&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">65 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>331&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>65</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>18</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>13&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>884&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>134</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,312&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>34</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>64&nbsp;</B> </FONT> </TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Each individual amount included herein does not exceed euro 50 million.</FONT></TD></TR>
</TABLE>

<BR>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Most significant transactions concern:
      </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
lendings and guarantees to Albacom SpA and Serfactoring SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
bank  debt  guarantees  to  Blue  Stream  Pipeline  Co BV,  EnBW - Eni  Verwaltungsgesellschaft  mbH and
    Raffineria di Milazzo ScpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
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.
     </FONT></div></TD></TR>
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
During the year,  business has been  conferred  by/to  unconsolidated  subsidiaries  and  affiliates for non
significant amounts.
      </FONT> </div></TD></TR>
</table>





<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2002 Trade and
other transactions</B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31.12.2002</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=4><HR size=1></TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=1><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Costs</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Revenues</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=1></TD>
      <TD ALIGN="CENTER" colspan=2></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="41%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Receivables</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Payables</B> </FONT> </TD>
     <TD WIDTH="9%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Guarantees</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Goods</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Services</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Goods</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Services</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliated companies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bayernoil Raffineriegesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">652&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Promgas SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">212 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">227&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Erg Raffinerie Mediterranee Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">137&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrobel Belayim Petroleum Co </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">86&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">164&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Raffineria di Milazzo ScpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">159&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Superoctanos CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">181 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Austria Gasleitung GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">176&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bronberger &amp; Kessler Handelsgesellschaft </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U. Gilg &amp; Schweiger GmbH &amp; Co Kg </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">117&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Albacom SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Serfactoring SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bernhard Rosa Inh. Ingeborg Plochinger GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Azienda Energia e Servizi SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gruppo Distribuzione Petroli Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Karachaganak Petroleum Operating BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">214 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transitgas AG </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Europa Naturgas Pipeline GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">489 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Oil Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">83&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">67&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">147 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">55 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">105&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>269&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>441&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>147</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>464</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,782&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>727&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>728</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non consolidated subsidiaries</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">AgipGas BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">412 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip (Btc) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">206 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">122&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">26&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>45&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>113&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>657</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>160&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>32</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>314&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>554&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>804</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>471</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,942&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>735&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>760</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=3 ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Entities owned or controlled by the Government</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Enel </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">42&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">76&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,475&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">308 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>356&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>559&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>804</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>471</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,018&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,210&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,068</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Each individual amount included herein does not exceed euro 50 million.</FONT></TD></TR>
</TABLE>

<BR>

<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Engineering,  construction and maintenance  services were acquired from the Cosmi Holding Group,  related to
Eni through a member of the Board of Directors for a total of approximately euro 18 million in 2002.
The most significant transactions related to:
      </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    acquisition  of natural  gas  transport  services  outside  Italy from Trans  Austria  Gasleitung  GmbH,
    Transitgas AG, Trans Europa Naturgas Pipeline GmbH e  Transmediterranean  Pipeline Co Ltd,  transactions
    are  regulated on the basis of tariffs,  which  permit the  recovery of operating  expenses and employed
    capital;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    sale of natural gas outside Italy with Promgas SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    specialized  services in upstream  activities to Petrobel Belayim Petroleum Co,  Karachaganak  Petroleum
    Operating BV, Agip Oil Co Ltd and AgipGas BV; services are invoiced on the basis of incurred costs;  and
    exclusively with Karachaganak Petroleum Operating BV, services are provided by Eni&#146;s oilfield services;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    acquisition of refining services from Raffineria di Milazzo ScpA and Erg Raffinerie  Mediterranee Srl on
    the basis of incurred  costs for  Raffineria di Milazzo ScpA,  and general  conditions  applied to third
    parties for Erg Raffinerie Mediterranee Srl;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    sale of petrochemical  products,  supplying of crude oil refining activities and fuel additive purchases
    from  Bronberger  &amp; Kessler  Handelsgesellschaft  U. Gilg &amp;  Schweiger  GmbH Co Kg,  Bernhard  Rosa Inh.
    Ingeborg Plochinger GmbH, Gruppo Distribuzione  Petroli Srl, Bayernoil  Raffineriegesellschaft  GmbH and
    Superoctanos CA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
        communication services, data transmission and concessions of optical fibres with Albacom SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
        the construction of a pipeline between Turkey and the Russian Federation for Blue Stream Pipeline Co BV;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
    factoring activities with Serfactoring SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
     transportation and distribution activities with Azienda Energia e Servizi SpA;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
     guarantees given in relation to the construction of an oil pipeline by Agip (Btc).
     </FONT></div></TD></TR>
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
Transactions  with Enel concern the sale and  transportation  of natural gas,  sale of fuel oil and sale and
purchase of electricity.
      </FONT> </div></TD></TR>
</table>




<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2002 Financing
transactions</B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31.12.2002</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="45%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Receivables</B> </FONT> </TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Payables</B> </FONT> </TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Guarantees</B> </FONT> </TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Charges</B> </FONT> </TD>
     <TD WIDTH="11%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Gains</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliated companies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">874&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">30&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transitgas AG </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">655&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Austria Gasleitung GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">448&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">EnBW - Eni Verwaltungsgesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">264&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Serfactoring SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">46&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Superoctanos CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">40&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bayernoil Raffineriegesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">24&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">72&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">91&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,511&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>95</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,005&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>64&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non consolidated subsidiaries</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">326&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">95&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip (Btc) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>400&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>68</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>100&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>20&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,911&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>163</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,105&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>16</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>84&nbsp;</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Each individual amount included herein does not exceed euro 50 million.</FONT></TD></TR>
</TABLE>

<BR>
<TABLE WIDTH="100%" BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR>
      <TD colspan=2><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
The most significant transactions related to:
      </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
guarantees  provided  to banks  and  related  fees to  Turkey,  the  financing  of the  doubling  of the
    Italy/Netherlands  pipeline  in the Swiss  section  and 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 Blue Stream  Pipeline Co BV,  Transitgas  AG,  Trans  Austria
    Gasleitung GmbH and Transmediterranean Pipeline Co Ltd;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
concessions of loans to EnBW - Eni  Verwaltungsgesellschaft  mbH for the  acquisition  of  Gasversorgung
    S&#252;ddeutschland GmbH;
     </FONT></div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH="3%"><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH="97%"><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE="2">
concessions  and guarantees  provided to banks in relation to lendings to  Serfactoring  SpA,  Bayernoil
    Raffineriegesellschaft mbH, Superoctanos CA and Agip (Btc).
     </FONT></div></TD></TR>
</table>






<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2001 Trade and
other transactions</B></FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31.12.2001</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=4><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=4><HR size=1></TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=1><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Costs</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Revenues</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=1></TD>
      <TD ALIGN="CENTER" colspan=2></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="44%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Receivables</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Payables</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Guarantees</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Goods</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Services</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Goods&nbsp;</B> </FONT> </TD>
     <TD WIDTH="8%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Services</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliated companies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">146&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">84&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">471&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bayernoil Raffineriegesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">612&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Promgas SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">267&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">302&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrobel Belayim Petroleum Co </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">116&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">296&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Raffineria di Milazzo ScpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">151&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">57&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Superoctanos CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">191 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Agip Oil Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">130&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Austria Gasleitung GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">118&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">34&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Serfactoring SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">142&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bronberger &amp; Kessler Handelsgesellschaft </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;U. Gilg &amp; Schweiger GmbH &amp; Co Kg </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bernhard Rosa Inh. Ingeborg Plochinger GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">85&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gruppo Distribuzione Petroli Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">68&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Inca International SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Saccne Rete Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">53&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Supermetanol CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">50&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transitgas AG </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">25&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">134&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">31 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">63 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">166&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">154&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>503&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>616&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>31</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>571</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,417&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>865&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>511&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non consolidated subsidiaries</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">47&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">185 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">677&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">92&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">142&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Hotel Assets Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">51 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">138&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">111 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">59&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>124&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>167&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>162</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>194</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>187&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>736&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>96&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>627&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>783&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>193</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>765</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,604&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,601&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>607&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Entities owned or controlled by the Government</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Enel </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">70&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,512&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">226&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>697&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>792&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>193</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>785</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,627&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,113&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>833&nbsp;</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Each individual amount included herein does not exceed euro 50 million.</FONT></TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>2001 Financing
transactions</B></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD>
      <TD ALIGN="CENTER" colspan=2><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
      <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT> </TD>
      <TD ALIGN="CENTER" colspan=3><HR size=1></TD>
      <TD ALIGN="CENTER" colspan=2><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Name</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Receivables</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Payables</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Guarantees</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Charges</B> </FONT> </TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Gains</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Affiliated companies</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Blue Stream Pipeline Co BV </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">983&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transitgas AG </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">608&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trans Austria Gasleitung GmbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">469&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Superoctanos CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">130&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Supermetanol CA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">16&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">134&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Serfactoring SpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">77&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Raffineria di Milazzo ScpA </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">66&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Bayernoil Raffineriegesellschaft mbH </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">80 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,250&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>150</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,332&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>48&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non consolidated subsidiaries</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Transmediterranean Pipeline Co Ltd </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">429&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">113&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Polimeri Europa Srl </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">306&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">120&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other (*) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">59&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>794&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>52</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>241&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>51&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,044&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>202</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,573&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>99&nbsp;</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(*)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Each individual amount included herein does not exceed euro 50 million.</FONT></TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In 2001, trade and financial  transactions  with Blue Stream Pipeline Co BV related to the construction of a
pipeline   that   will   link   the   Russian   Federation   to   Turkey.    Transactions   with   Bayernoil
Raffineriegesellschaft  and  Raffineria  di Milazzo  related  to the  refining  of crude oil,  and only with
Raffineria di Milazzo the sale of crude oil, the purchase of petroleum  products,  and  guarantees  given on
behalf of Raffineria di Milazzo to banks in relation to loans.  Trade  transactions  with Promgas related to
the sale of natural gas.  Transactions  with Petrobel Belayim Petroleum and Agip Oil Co Ltd concern services
for exploration and production.  Transactions with Superoctanos and Supermetanol  related to the purchase of
fuel additives and guarantees provided to banks in relation to lendings.  Financial  transactions with Trans
Austria  Gasleitung  GmbH related to the  financing of the Austrian  section of the gasline from the Russian
Federation to Italy as well as transmission of natural gas.  Transactions  with  Serfactoring SpA related to
factoring  activities and financing.  Trade  transactions with Bronberger &amp; Kessler  Handelsgesellschaft  U.
Gilg &amp; Schweiger  GmbH Co Kg,  Bernhard Rosa Inh.  Ingeborg  Plochinger  GmbH and Saccne Rete related to the
sale of refined products on wholesale markets.  Transactions with Gruppo  Distribuzione  Petroli Srl related
to  sales  of  petroleum  products.  Trade  transactions  with  Inca  International  related  to the sale of
petrochemical  products.  Receivables  with  Transitgas  related to the  financing  of the  doubling  of the
Italy/Netherlands pipeline in the Swiss section and natural gas transport services.<BR>
Transactions  with  Transmediterranean  Pipeline Co Ltd related to financings and guarantees  given to banks
in relation to loans and lines of credit for the  construction  of natural gas  transmission  facilities and
transport  services.  Trade  transactions  with Polimeri Europa related to the sale of basic  petrochemicals
and  electricity,  financial  transactions  related to financings  for operating  activities  and guarantees
given to banks. Guarantees given to Hotel Assets Ltd related to tax payments.<BR>
Transactions  with Enel related to the sale and  transportation  of natural  gas,  sale of fuel oil and sale
and purchase of electricity.
</FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>27 Summary of
significant differences between Italian accounting principles and U.S. GAAP</B><BR> Eni&#146;s
financial statements have been prepared in accordance with Italian GAAP, which
differs in certain respects from U.S. GAAP. A description of the significant
differences and their effects on net income and shareholders&#146; equity is set forth in
the following notes. Those differences described below that are not included in the
reconciliations of net income or shareholders&#146; equity (see Note 28), either had no
effect, or their effect was not significant. See also Note 2, Summary of significant
accounting and reporting policies for additional information on the accounting
principles that Eni follows. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>A) Consolidation policy</B><BR>
Eni&#146;s consolidation policy is described under &#147;Principles of consolidation&#148; of the Notes to the Consolidated Financial Statements. In
particular, under Italian GAAP, the consolidated financial statements include also companies in which Eni holds less than 50% of the
voting rights, but over which it exercises control in shareholders&#146; meetings.<BR>
Under U.S. GAAP, investments of less than 50% are accounted for by applying the equity method. Saipem SpA (43.0%), and its
subsidiaries which are controlled by Eni without holding the majority of voting rights, have been consolidated under the equity
method for U.S. GAAP purposes.<BR>
In addition, U.S GAAP also requires an investor with a majority of the variable interests (primary beneficiary) in a variable
interest entity (&#147;VIE&#148;) to consolidate the entity. A VIE is an entity that meets any of the following criteria: (i) it has a total
equity investment at risk that is not sufficient to finance its activities without additional subordinated financial support from
other parties; (ii) the equity owners do not have the ability to make significant decisions about the entity&#146;s activities through
voting or similar rights; (iii) the equity owners do not have an obligation to absorb the entity&#146;s expected losses, or (iv) the
equity owners do not have the right to receive the entity&#146;s expected residual returns. This difference in consolidation policies, as
it was applied to entities created by Eni after January 31, 2003, did not result in any differences between U.S. GAAP and Italian
GAAP. </FONT> </P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>B) Exploration &amp; Production
activities</B></FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Exploration</I><BR>
Under Italian GAAP, exploration costs, including successful exploratory wells, are recorded as intangible assets and are amortized in
full in the period incurred (i.e. expensed as incurred for financial reporting purposes). Costs for the acquisition of exploration
permits are capitalized and amortized over the expected period of benefit.<BR>
Under U.S. GAAP, costs relating to exploratory wells are initially capitalized as &#147;incomplete wells and other&#148; until it is determined
if commercial quantities of reserves have been discovered (&#147;successful efforts method&#148;). That determination is made after completion
of drilling the well, and the capitalized costs are either charged to expense or reclassified as part of Eni&#146;s proved mineral
interests. Costs of exploratory wells that have found commercially producible quantities of reserves that cannot be classified as
proved remain capitalized if such wells have found sufficient quantities of reserves to justify their completion, and the Company has
either firm plans to drill additional wells necessary to determine the existence of proved reserves or is awaiting regulatory
approvals. Otherwise, exploratory well costs are generally expensed upon the earlier of determining that proved reserves have been
not found, or within one year of completing drilling. Capitalized well costs related to proved properties are amortized over proved
developed reserves on the basis of units of production. Other exploration costs, including geological and geophysical, are expensed
when incurred. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Development</I><BR>
Development costs are those costs incurred to obtain access to proved reserves and to provide facilities for extracting, treating,
gathering and storing oil and gas. Costs to operate and maintain wells and field equipment are expensed as incurred.<BR>
Under Italian GAAP, costs of unsuccessful development wells are expensed immediately. Costs of successful development wells are
capitalized and amortized on the basis of units of production.<BR>
Under U.S. GAAP, costs of productive wells and development dry holes, both tangible and intangible, are capitalized and amortized on
the unit-of-production method. </FONT> </P>
<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>C) Valuation of assets and subsequent revaluation</B><BR>
Both Italian and U.S. GAAP require that assets which are impaired be written down to their fair value. However, under Italian GAAP,
in order to determine whether an impairment exists, the book value of an asset in question is compared to the sum of the discounted
cash flows expected to be generated by such asset. If the sum of such discounted cash flows is less than the carrying value of the
asset, an impairment exists.<BR>
Under U.S. GAAP, SFAS 144 requires the performance of the same analysis using undiscounted cash flows.<BR>
In addition, under Italian GAAP impairment charges are reversed when the situation giving rise to an impairment ceases to exist.
Under U.S. GAAP reversals of impairment charges are not permitted. </FONT> </P>
<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>D) Monetary revaluation of assets</B><BR>
Under Italian GAAP, certain assets have been revalued at various times in accordance with various Italian laws.<BR>
Under U.S. GAAP, such revaluations are not permitted.<BR>
The adjustments provided in Note 28 include the effect of the recomputation of depreciation expense and of gains/(losses) on a
historical cost basis, as well as the elimination of these revaluations and the related accumulated depreciation. </FONT> </P>
<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>E) Deferred tax assets and liabilities</B><BR>
Under Italian GAAP deferred taxes are recorded if recoverable with reasonable certainty. Taxes payable relating to certain potential
distributions from shareholders&#146; equity or upon liquidation of a company are accrued only to the extent such distributions are
planned. Any timing difference between purchase price and the tax bases of an asset acquired does not result in the recording of an
adjustment to the carrying value of such asset.<BR>
Under U.S. GAAP, deferred tax assets are recorded if their recovery is more likely than not. The potential taxes on equity reserves
are considered deferred tax liabilities and are accrued accordingly. Deferred income taxes have not been provided on undistributed
earnings of foreign subsidiaries as such earnings are expected to be permanently reinvested. In addition, under U.S. GAAP, in
situations where the purchase price of assets is not equal to the tax bases, deferred taxes must be provided for such differences and
recorded as part of the acquisition.
The adjustments included in the reconciliations to U.S. GAAP take into account the realizability of deferred tax assets, based on the
more likely than not criteria rather than the certainty of their recovery, deferred taxes on undistributed earnings of subsidiaries
and deferred taxes on acquired temporary differences. The adjustments also include the deferred tax effect of U.S. GAAP adjustments. </FONT> </P>
<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>F) Depreciation of fixed assets</B><BR>
Under Italian GAAP, until 1999, in accordance with Italian practice, depreciation of natural gas pipelines, natural gas distribution
networks and related plant and machinery, was accounted for by applying rates on a straight-line basis established by Italian tax
authorities on the basis of technical studies conducted for homogeneous industries.<BR>
Under U.S. GAAP, depreciation expense is recognized based on the estimated economic useful lives of the assets.
The publication of Legislative Decree No. 164 of May 23, 2000, which imposed the separation of transmission and distribution
activities from other natural gas activities and set the criteria for the determination of transport and distribution tariffs by the
Authority for Electricity and Gas led companies operating in this segment to re-evaluate the useful lives of the assets. The useful
lives calculated by Eni (40 years for pipelines and 50 for distribution networks) were confirmed by an independent appraisal and by
the documents issued by the Authority for Electricity and Gas. Therefore, from 2000 assets related to transmission and distribution
activities are amortized, both under Italian GAAP and U.S. GAAP, based on these new useful lives. </FONT> </P>
<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>G) Intangible assets</B><BR>
Under Italian GAAP, goodwill is amortized on a straight-line basis in the utilization period, over a maximum period of twenty years.
Other intangible assets are amortized systematically in relation to their residual useful life.<BR>
Under U.S. GAAP goodwill and intangible assets with an indefinite useful life are not amortized; these assets are subject to a yearly
evaluation in order to define the relevant impairment if needed.<BR>
U.S. GAAP requires companies to capitalize, separately from goodwill, all identifiable intangible assets acquired as part of a
business combination and amortize such assets over their useful lives.<BR>
Under Italian GAAP, such intangible assets are not recorded separately from goodwill. </FONT> </P>
<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>H) Capitalized interest expense</B><BR>
Under Italian GAAP, Eni capitalizes interest expense only if certain conditions are met in the self-construction of assets.<BR>
Under U.S. GAAP, interest is capitalized to the extent a company has fixed assets under construction during the reporting period and
has outstanding interest bearing debt.<BR>
The adjustment to U.S. GAAP for &#147;Capitalized interest&#148; included represent the capitalization difference, based upon actual interest
costs incurred during each period, as well as the subsequent depreciation effect of the additional capitalized interest under U.S.
GAAP. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>I) Derivatives</B><BR>
Under Italian GAAP, derivative contracts are evaluated differently if they are used as hedging or as speculative instruments. Eni
values derivatives that are used for hedging purposes, but that are not designated against specific transactions, according to the
nature of the hedged assets. In particular, interest differences on derivatives hedging interest rates and premiums and discounts on
exchange rate risk hedging contracts are recorded in the income statement over the term of the contracts. The currency component of
exchange rate risk hedging is recorded in the income statement in the year in which the hedge asset/liability is first recorded.
Profits on derivative contracts on price risks are recorded in the income statement as offsetting the depreciation of the hedged
asset. Losses are recorded when incurred. Derivative contracts used as speculative instruments are recorded at fair value and the
related effects are recorded in the income statement.<BR>
Under U.S. GAAP, SFAS 133 &#147;Accounting for Derivative Instruments and Hedging Activities&#148; establishes accounting and reporting for
derivative instruments and hedging activities. In general SFAS 133 requires that companies recognize all derivatives as either assets
or liabilities on the balance sheet and measure those instruments at fair value. Eni adopted SFAS 133 for U.S. reporting purposes on
January 1, 2001. Eni uses derivative instruments to manage the risk of fluctuations in commodity prices, interest rates and foreign
currency (see Note 23). SFAS 133 requires that derivative instruments that hedge the variability of expected cash flow, the fair
value of an underlying, or currency other than euro related to a specific risk are designated as a cash flow hedge, fair value hedge,
or foreign currency hedge, respectively. Changes in the fair value of derivative instruments designated and effective as fair value
hedges are recognized through earnings and changes in the fair value of cash flow hedges are recognized through equity as a component
of other comprehensive income.<BR>
For U.S. GAAP purposes, upon adoption of SFAS 133, the current U.S. GAAP hedging relationships for Eni&#146;s existing derivative
instruments were de-designated. The financial statement effect of this de-designation was not significant in 2001. Subsequent to
adoption, movements in the fair value of derivative instruments have been recorded as adjustments to U.S. GAAP net income as
reflected in Note 28. </FONT> </P>


<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>J) Stock compensation<BR>
</B>Under Italian GAAP, stock grant and option plans issued and offered to employees beginning in 2003 by using treasury shares have been
recorded as compensation expense on the basis of the fair value and are recognized under the pro rata temporis method over the
vesting period. The accounting method adopted under Italian GAAP (see &#147;Changes in accounting principles&#148;) is consistent with the
requirements of SFAF 123 with the exception that under U.S. GAAP the costs related to stock grants are recorded as contra accounts
within the equity accounts and the treasury shares remain recorded at cost.<BR>
U.S. GAAP provides alternative methods for the transition of the accounting for stock-based compensation from the intrinsic value
method to the fair value method. Eni has applied the fair value method to grants made, modified or settled on or after January 1,
2003. The impact of Eni&#146;s 2003 net income was not materially different than under previous accounting standards. See Note 2, Summary
of significant accounting and reporting policies for additional information.<BR>
Prior to January 1, 2003, under Italian GAAP, stock grant and option plans offered to employees for no consideration were recorded
within the equity accounts when the shares were issued. In particular, stock grants made for no cash consideration were recorded at
nominal value as a debit against the specific equity reserve; shares issued after exercise of options were recorded as capital
increase for the nominal value and as an increase in the special reserve for the difference between amounts paid for exercising the
options and the nominal value of issued shares. No compensation expense was recorded.<BR>
Prior to January 1, 2003, under U.S. GAAP, stock grant and option plans offered to employees were recorded as compensation expense
for the excess of the market value over the exercise price of the stock on the measurement date. Such compensation expense was
recorded over the period of benefit.<BR>
Costs related to stock grant and option plans offered to employees for no consideration until December 31, 2002 have been included in
the adjustment of net income under U.S. GAAP (see Note 28).<BR>
Eni does not give stock compensation in exchange of goods and services from non-employees. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>K) Stock issuance costs</B><BR>
Under Italian GAAP, direct costs for issuances of equity are capitalized by Eni in the account &#147;Intangible assets - organizational
and financing costs&#148; and amortized over their economic useful lives, not to exceed 5 years.<BR>
Under U.S. GAAP, costs associated with obtaining new capital by issuing common or preferred stock are considered as a reduction of
the related proceeds and recorded as a net amount in equity. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>L) Marketable securities</B><BR>
Under Italian GAAP, marketable securities are carried at the lower of purchase cost or market value.<BR>
Under U.S. GAAP, the accounting for investments in marketable securities uses a fair market value methodology. Eni&#146;s marketable
securities would be classified as available-for-sale with changes in market value recorded as comprehensive income which is a
component of shareholders&#146; equity. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>M) Costs related to site restoration and abandonment</B><BR>
Under Italian GAAP, costs related to site restoration and abandonment are evaluated annually on the basis of costs expected to be
incurred for laws and regulations and contractual obligations.<BR>
Under Italian GAAP, Eni accrues its abandonment and restoration costs, estimated on an undiscounted basis, rateably over the
productive lives of its assets using the units-of-production method.<BR>
Under US GAAP, SFAS 143 requires entities to record the fair value of a liability for an asset retirement obligations (ARO) in the
period when it is incurred (typically at the time the asset is installed at the productions location). When the liability is
initially recorded, the capitalized costs of the related fixed assets will be increased by an equal corresponding amount. Over time,
the liabilities are increased for the change in their present value each period, and the initial capitalized costs are depreciated
over the useful lives of the related assets.<BR>
The recognized asset retirement obligations liability amounts are based upon future retirement cost estimates and incorporate many
assumptions such as expected recoverable quantities of crude oil and natural gas, time to abandonment, future inflation rates and the
risk-free rate of interest adjusted for the Company&#146;s credit costs.<BR>
No significant legal obligations to retire refining, transportation, marketing (downstream) and chemical long-lived assets were
generally recognized, as indeterminate settlement dates for the asset retirements prevented estimation of the fair value of the
associated asset retirement obligations. 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, either under U.S. GAAP or Italian
GAAP. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>N) Treasury shares</B><BR>
Under Italian GAAP, treasury shares, acquired as long-term investments, are recorded at cost adjusted for impairment. When the
reasons for the impairment cease to exist, treasury shares are revalued. Treasury shares purchased in relation to group incentive
plans are carried at the lower of purchase cost or fair value for stock grants and at the lower of purchase cost or strike price for
stock options. Treasury shares purchased in relation to incentive plans to be issued are carried at the lower of purchase cost or
market value.<BR>
Under U.S. GAAP, all treasury shares are recorded at cost. Such difference did not generate significant differences between U.S. GAAP
and Italian GAAP. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>O) Extraordinary income and expense</B><BR>
All items recorded by Eni as extraordinary under Italian GAAP in the periods presented herein would not qualify as extraordinary
under U.S. GAAP. Such items have been reclassified to the appropriate income statement captions as determined by U.S. GAAP, certain
of which have been included in the determination of operating income by segment. In addition, under U.S. GAAP, extraordinary items
are presented net of tax. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>P) Sales of government bonds</B><BR>
Eni accounted for government bonds transferred primarily to employees at par value, with the repurchasing commitment at the same
value, as sales of bonds, and recognized the related gains in current income. For U.S. GAAP purposes, the terms of these transactions
would result in their treatment as financing transactions and consequently in a cash flow statement prepared under U.S.GAAP, these
cash flows would be included in financing activities. Under this method, the bonds would remain as assets and the proceeds from the
&#147;sales&#148; would be treated as financing obligations. Gains and losses from such sales are not significant. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Q) Reclassification of inventory</B><BR>
Compulsory stock relates primarily to the Italian operations. Under Italian law Eni is required to retain certain strategic
quantities of natural gas and petroleum products (&#147;compulsory stock&#148;) in its storage facilities at all times. Eni values natural gas
and petroleum products held as compulsory stock as inventories that are subject to lower of cost or market valuations annually.<BR>
Under U.S. GAAP, current assets, such as inventories, are reasonably expected to be realized in cash or sold or consumed during the
normal operating cycle of the business, which for Eni is twelve months. As Eni&#146;s compulsory stock is not expected to be sold or
consumed within the next twelve months, compulsory stock amounts are recorded, for U.S. GAAP purposes, in non-current assets under
the caption Non-current Inventories (Compulsory Stock). </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>R) Comprehensive Income</B><BR>
Under Italian GAAP, Comprehensive Income does not exist.<BR>
U.S. GAAP requires the reporting and display of comprehensive income and its components in accordance with Statement of Financial
Standard No. 130, &#147;Reporting Comprehensive Income&#148; (&#147;SFAS 130&#148;). Components of other comprehensive income include variations in
equity accounts not attributable to transactions already recorded in income or transaction with shareholders. The required
information pursuant to SFAS 130 is presented in the reconciliation that follows. Deferred tax effects of exchange differences from
the translation of functional currency financial statements have not been recorded as provided for by SFAS 109, which permits the
exclusion of the calculation of taxes on equity reserves of foreign subsidiaries when the reserves are not expected to be released. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>S) Earnings per share</B><BR>
Under Italian GAAP prior year earnings per share is recalculated each year to include in the weighted-average number of shares the
number of shares issued through stock grants made in 2003.<BR>
Under U.S. GAAP prior year earnings per share is not adjusted for the exercise of stock grants in 2003.<BR>
This difference did not generate a significant difference between U.S. GAAP and Italian GAAP.<BR>
Stock grant and option plans approved by Eni in 2003 are recorded with equivalent criteria both under Italian GAAP and U.S. GAAP. For
this reason there are no differences in the calculation of earnings per share between U.S. GAAP and Italian GAAP. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>T) Guarantees</B><BR>
Under Italian GAAP guarantees are recorded in other memorandum accounts; when it is probable or certain that a guarantee will produce
a liability, its estimated amount is accrued in a specific reserve as a component of equity.<BR>
U.S. GAAP requires a company to recognize a liability for the obligations it has undertaken in issuing a guarantee. This liability is
to be recorded at the inception of a guarantee and would be measured at fair value.<BR>
This difference did not generate a significant difference between U.S. GAAP and Italian GAAP. </FONT> </P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>U) Liabilities for redundancies</B><BR>
Under Italian GAAP, expected liabilities for redundancy incentives are accrued in &#147;Reserves for contingencies - Other&#148;, when a
workforce reduction program is defined, the legislation is issued or, if necessary, agreements of negotiated contracts with trade
unions are made and the liability can be reasonably estimated. Costs relating to closures of facilities are recorded when the
liability is probable and it can be reasonably estimated.<BR>
Under U.S. GAAP, expected liabilities for involuntary redundancy incentives are expensed when the liability has been incurred and
when it can be measured at fair value. The adjustment to U.S. GAAP represents redundancy costs recognized under Italian GAAP, which
did not meet the U.S. GAAP criteria. </FONT> </P>

<P ALIGN=JUSTIFY>

<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>28 Reconciliations between net income and shareholders&#146; equity determined under Italian GAAP to U.S. GAAP</B><BR>
The following is a summary of the significant adjustments to net income for the years ended December 31, 2001, 2002 and 2003 and to
shareholders&#146; equity as of December 31, 2002 and 2003 that would be required if U.S. GAAP had been applied instead of Italian GAAP in
the consolidated financial statements. </FONT> </P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Reconciliation of
net income</B></FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=90% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=79% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=7% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income according to the financial statements prepared under Italian GAAP</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,751&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,593&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,585&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Items increasing (decreasing) reported net income: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">A. effect of the differences related to companies consolidated under Italian GAAP but carried at equity method under U.S. GAAP <SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(69) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">A. effect of the differences related to companies carried on the equity method </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">107&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">B. successful-efforts accounting </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">265&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">222&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">23&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">C. asset impairments and revaluations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">71&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">74&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">D. adjustment for the elimination of monetary revaluation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">33&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(30) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">D. elimination of gains on sales related to monetary revaluation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">227&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">E. deferred income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(499) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(16) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">286&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">F. use of different depreciation rates </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(115) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(67) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(179) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">G. adjustment for the amortization of goodwill <SUP>(b)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">94&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">G. differences in fair value assigned to assets acquired in the purchase of a business </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">H. capitalized interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(7) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(33) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">I. derivative contracts </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">54&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(51) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">J. stock grants and options awarded to employees </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(22) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(9) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(15) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">K. stock issuance costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">M. effect related to site restoration and abandonment liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(53) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U. effect related to reserves for contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;- adjustments of gains on the sales of an interest in a consolidated subsidiary <SUP>(c)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,385) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;&nbsp;- effect of U.S. GAAP adjustments on minority interest <SUP>(d)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">69&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">183&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">154&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net adjustment</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,434)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>699&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>513&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income in accordance with U.S. GAAP before cumulative effect of change in accounting principles</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,098&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effect of the initial application of SFAS 143 <SUP>(e)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">198&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income in accordance with U.S. GAAP</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,317&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,292&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,296&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income per share before cumulative effect of change in accounting principles </B><SUP>(f)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.61&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income per share resulting from the cumulative effect of the initial application of SFAS 143 </B><SUP>(f)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>0.05&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income per share including the cumulative effect of the initial application of SFAS 143 </B><SUP>(f)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.62&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.38&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.67&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income per ADS (based on five shares per ADS) </B><SUP>(f)</SUP> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8.08&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6.92&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8.33&nbsp;</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=top>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Adjustment includes the aggregate effect of all differences between Italian GAAP and U.S. GAAP related to company fully consolidated under Italian GAAP but accounted for under the equity method under U.S. GAAP; specifically this refers to Saipem SpA and its subsidiaries for the year 2003 and to Italgas SpA and Saipem SpA and their subsidiaries for the years 2002 and 2001.</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Had SFAS 142 been adopted for 2001, its effects would have been to increase net income by euro 44 million and basic and diluted earnings per share by euro 0.01.</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(c)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Adjustment made to determine the gain under U.S. GAAP on the sale of stock in Snam Rete Gas, due to the fact that Eni&#146;s net equity in the subsidiary is different under U.S . GAAP and Italian GAAP,
mainly owing to differences in depreciation rules of fixed assets as the depreciation rates applied under Italian GAAP were more accelerated than those applied under U.S. GAAP, as more fully described in Note 27 F.
The carrying value of the sold portion of Eni&#146;s investment in Snam Rete Gas (40.24%) under U.S. GAAP immediately prior to its sale was euro 1,134 million,
thus resulting in a net gain on sale of euro 1,068 million on proceeds from sale of euro 2,202 million.
</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(d)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Adjustment to account for minority interest portion of differences B through U, which include 100% of differences between Italian GAAP and U.S. GAAP on less than wholly-owned subsidiaries.</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(e)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Total effect for the years before January 1, 2003 net of income taxes for euro 207 million.</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(f)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Amounts in euro.</FONT></TD></TR>
</TABLE>



<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Discontinued operations
</FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% ALIGN=CENTER>
<TR VALIGN=Bottom>
     <TD WIDTH=64% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2001&nbsp;</FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2002&nbsp;</FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2003&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Analysis of net income between:</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>continuing operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,288&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,308&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,322&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>discontinued operations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-16&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-26&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net income (US GAAP)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,317&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,292&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,296&nbsp;</FONT></TD></TR>
</TABLE>



<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
In 2003,  Eni decided to sell its  exploration  operations in  Mauritania,  its  exploration  and production
interests  in Gabon,  and  certain of its  exploration  and  production  fields in the North Sea and onshore
fields  in  Italy,  all of which  were  businesses  within  its  Exploration  &amp;  Production  segment.  These
divestiture  decisions  were  made as part of  Eni&#146;s  strategic  plan to  rationalize  non-core  oil and gas
properties, and the sales of these businesses were completed during 2004.
</FONT></P>


<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Also in 2003,  Eni finalized  its  negotiations  for the sale of its  elastomers  manufacturing  business in
Baytown,  Texas,  which was a business within its  Petrochemicals  segment.  This divestiture  decisions was
made as part of Eni&#146;s  strategic plan to evaluate offers for certain of its elastomers  operations,  and the
sale of this business was completed in January 2004.
</FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Earnings or losses of these businesses, as well as any impairment determined as a result of the expected
sales proceeds, are reported as discontinued operations for all years presented in Eni&#146;s reconciliation of
net income determined under Italian GAAP to U.S. GAAP.
</FONT></P>



<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Reconciliation of
shareholders&#146; equity</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=85% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=76% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Shareholders&#146; equity according to the financial statements prepared under Italian GAAP</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>26,257&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>26,696&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Items increasing (decreasing) reported shareholders&#146; equity: <SUP>(a)</SUP> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">A. effect of the differences between Italian GAAP and U.S. GAAP related to companies carried at equity method under U.S. GAAP <SUP>(b)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">131&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">52&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">A. effect of the differences related to companies carried at equity method </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">213&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">B. successful-efforts accounting </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,543&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,253&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">C. assets impairments and revaluations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(44) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">35&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">D. elimination of monetary revaluation </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(43) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(80) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">E. deferred income taxes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,347) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,207) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">F. use of different depreciation rates </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,409&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,551&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">G. goodwill </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">29&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">121&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">G. assets associated to the acquisition of a company (portfolio of clients) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">H. capitalized interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">648&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">667&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">I. derivative contracts </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">106&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">K. stock issuance costs </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(20) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(17) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">L. fair value of marketable securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">M. site restoration and abandonment liabilities (SFAS 143) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">441&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">U. reserves for contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">60&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">116&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp;- effect of U.S. GAAP adjustments on minority interest <SUP>(c)</SUP> </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,118) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(965) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net adjustment</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,479&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,252&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Shareholders&#146; equity in accordance with U.S. GAAP</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>27,736&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>28,948&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN="TOP">
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Items increasing (decreasing) reported shareholders&#146; equity of foreign companies are translated into euro at exchange rate prevailing the end of each period.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Adjustment includes the aggregate effect of all differences between Italian GAAP and U.S. GAAP related to companies fully consolidated under Italian GAAP but accounted for under the equity method under U.S. GAAP; specifically this refers to Saipem SpA and its subsidiaries for the year 2003 and to Italgas SpA and Saipem SpA and their subsidiaries companies for the years 2002 and 2001.</FONT></TD></TR>
<TR VALIGN="TOP">
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(c)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Adjustment to account for minority interest portion of differences B through U, which include 100% of differences between Italian GAAP and U.S. GAAP on less than wholly-owned subsidiaries.</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Shareholders&#146; equity
under U.S. GAAP includes other comprehensive  income, in negative,  of euro 744 million
and euro 2,748  million as of December  31, 2002 and 2003,  respectively.  Such other
 comprehensive  income primarily  relates to exchange rate  differences  resulting from
the translation of financial  statements of foreign companies (cumulative  translation
 adjustment) and to the fair value of marketable securities gross of deferred  income
taxes.  The decrease of the other  comprehensive  income of euro 2,004  million  regards
essentially  exchange rate differences due to the translation of financial  statements
 prepared in currency other than the euro (euro 2,033 million;  of which euro 1,450
million related to companies whose  functional currency is the US dollar). </FONT></P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Assets &amp; Liabilities</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>ASSETS</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Current assets</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Cash and cash equivalent </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,892&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,224&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Marketable securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,390&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,462&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Receivables, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,655&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">14,193&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Inventories, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,376&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,266&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accrued interest and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">251&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">601&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total current assets</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>19,564&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>19,746&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non-current assets</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets, net of accumulated depreciation, amortization and writedowns </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">32,935&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38,468&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Non-current inventories (compulsory stock) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">634&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">721&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Receivables, net </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,863&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,602&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,900&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,010&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Intangible assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,787&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,547&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,439&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,901&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total non-current assets</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>46,558&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>52,249&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>TOTAL ASSETS</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>66,122&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>71,995&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Current liabilities</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Short-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,216&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,470&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Current portion of long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">935&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">672&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Trade accounts payable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,720&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,146&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Advances </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">947&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">798&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Taxes payable </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,272&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,661&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accrued expenses and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,069&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,971&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total current liabilities</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>19,159&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>20,718&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Non-current liabilities</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Long-term debt </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,169&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,002&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserve for employee termination indemnities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">395&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">524&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserves for contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,268&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,444&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred and other non-current income tax liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,441&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,943&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Accrued expenses and other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">521&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">594&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total non-current liabilities</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>17,794&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>20,507&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>TOTAL LIABILITIES</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>36,953&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>41,225&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Minority interests</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,433&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1,822&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Shareholders&#146; equity</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Capital stock 4,002,922,176 fully paid shares nominal value 1 euro each (4,001,814,026 fully paid shares at December 31, 2002) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,002&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,003&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,280&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,813&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Treasury shares </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,838) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3,164) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income for the year </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,292&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,296&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B><I>Total shareholders&#146; equity</I></B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>27,736&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>28,948&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>TOTAL LIABILITIES AND SHAREHOLDERS&#146; EQUITY</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>66,122&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>71,995&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The fixed assets as
determined under U.S. GAAP would have been as follows: </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>fixed assets</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed asset, gross: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">37,393&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">38,851&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">11,825&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">18,974&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,779&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,479&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,726&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,780&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">100&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">108&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,706&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,567&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">128&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">146&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>62,657&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>71,905&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less accumulated depreciation, amortization and writedowns: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17,044&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17,678&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,184&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,605&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,654&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,270&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,445&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,522&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">61&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,285&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,242&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">49&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">56&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>29,722&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>33,437&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets, net: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">20,349&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">21,173&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">7,641&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12,369&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,125&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,209&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,281&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,258&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">44&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">421&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">325&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">79&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">90&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>32,935&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>38,468&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fixed assets by
segment  relating to 2002 were  reclassified on the basis of the new division of
activities. In particular,  &#147;Other activities&#148; included the information of Syndial SpA
and its subsidiaries,  previously included in the  &#147;Petrochemicals&#148;  segment.  The
 information  relating to the new  segment  &#147;Corporate  and financial companies&#148; was
re-classified from &#147;Other activities&#148;.<BR>
With regard to the  statements  of income,
 operating  income  (loss) by industry  segment and income before income taxes, as
determined under U.S. GAAP, would have been as follows: </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operating income
(loss) by industry segment</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=70% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Operating income (loss) by industry segment</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exploration &amp; Production </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,208&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,494&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,661&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Gas &amp; Power </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,037&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,666&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,537&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Refining &amp; Marketing </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">872&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">303&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">617&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Petrochemicals </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,069) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(141) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(97) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Oilfield Services Construction and Engineering </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(10) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(14) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other activities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">17&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(233) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(190) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Corporate and financial companies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(202) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(214) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(315) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,853&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>7,861&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,215&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Income before income taxes and the initial application of SFAS 143</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,330&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,350&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,274&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effect of the initial application of SFAS 143 </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">405&nbsp; </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income before income taxes</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,679&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Certain gains and miscellaneous income, deriving primarily from rental income, gains on sales of fixed assets and royalties income
have been classified within operating income beginning in the 2002 financial statements. Prior year amounts of euro 211 million for
the year ended December 31, 2001, have been reclassified from the presentation made in the 2001 year accounts when such
amounts were excluded from operating income.
</FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating
 income (loss) by segment relating to the 2002 was reclassified on the basis of the new
division of activities.  In particular,  &#147;Other activities&#148;  included the information of
Syndial SpA and its subsidiaries,  previously  included in the  &#147;Petrochemicals&#148;  segment.
 The information  relating to the new segment &#147;Corporate and financial  companies&#148; was
re-classified from &#147;Other  activities&#148;.  For 2001, only the information  relating to the
new segment  &#147;Corporate and financial  companies&#148; was  reclassified  as Syndial SpA
transferred its Strategic Chemicals business to Polimeri Europa SpA as of January 1, 2002. </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>29 Additional
financial statement disclosures required by U.S. GAAP and the SEC</B></FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Stock compensation</B><BR>
With the aim of improving motivation and loyalty of its managers, Eni approved plans for the grant of Eni
shares and stock options to Eni managers. Until December 31, 2002, Eni adopted APB 25 and related
interpretations in accounting for shares and options issued to employees in its reconciliation to U.S.
GAAP. The disclosure requirements of SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148; (SFAS 123)
and a description of Eni&#146;s stock grant and stock option plans are included below. The relevant costs are
recorded in income for U.S. GAAP purposes (Note 26). Costs of plans for 2003 have been determined
according to Italian GAAP with criteria similar to those of SFAS 123. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Stock grant</B><BR>
With the aim of improving motivation and loyalty of Eni managers through the linking of compensation to
the attainment of preset individual and corporate objectives, making management participate in corporate
risk and motivating it towards the creation of shareholders&#146; value, increasing at the same time their
contribution to the management of the Company, starting in 2000 Eni created stock grant plans offering
shares for no consideration to those managers of Eni SpA and its subsidiaries as defined in art. 2359 of
the Civil Code<SUP>2</SUP> who have achieved corporate and individual objectives. Shares vest within 45 days after
the end of the third year from the date of the offer or, if earlier, within 45 days after: (i) the agreed
termination of employment; (ii) loss of control by Eni of the company of which the assignee is employee;
(iii) sale to a company not controlled by Eni of the company of which the assignee is employee; (iv) death
of the assignee. Stock rights may not be transferred by the assignee to other persons or entities, and
their assignment is firm and irrevocable while they automatically expire in case the assignee decides to
terminate employment at Eni within three years from the date the share rights were granted.<BR>
In application of the 2000-2001 Incentive Plan, Eni&#146;s Shareholders&#146; Meeting of June 6, 2000 delegated to
the Board of Directors, in accordance with art. 2443 of the Civil Code, the power to increase capital
stock up to a maximum of euro 3.5 million (or about 0.0875% of current capital stock) by issuing 3.5
million shares, nominal value euro 1 per share for no consideration before July 31, 2001 by withdrawing
from the &#147;Reserve for the issue of shares in accordance with art. 2349 of the Civil Code&#148;. On June 21,
2000 and June 7, 2001 the Board of Directors resolved to increase Eni&#146;s share capital by issuing up to a
maximum of 2 and 1.5 million ordinary shares respectively, to be offered for no consideration to those
managers that achieved preset individual and corporate targets in 1999 and 2000.<BR>
In application of the 2002 Incentive Plan, Eni&#146;s Shareholders&#146; Meeting of May 30, 2002 delegated to the
Board of Directors, in accordance with art. 2443 of the Civil Code, the power to increase the capital
stock up to a maximum of euro 1.5 million for no consideration (or about 0.037% of current capital stock)
before December 31, 2002 by issuing up to 1.5 million ordinary shares nominal value euro 1 per share, by
withdrawing from the &#147;Reserve for the issue of shares in accordance with art. 2349 of the Civil Code&#148;. On
July 2, 2002 the Board of Directors resolved to increase Eni&#146;s share capital by issuing up to a maximum of
1.5 million ordinary shares to be offered for no consideration to those managers that achieved preset
individual and corporate targets in 2001.<BR>
Eni&#146;s Shareholders&#146; Meeting of May 30, 2003 authorized the Board of Directors to dispose of a maximum of
6.5 million treasury shares (corresponding to about 0.162% of Eni&#146;s share capital) to assign for no
consideration in the 2003-2005 three year period to managers of the Group who have achieved corporate
preset targets and conferred to the Board of Directors the power to prepare the annual assignment plans.
On June 19, 2003 the Board of Directors approved the Stock Grant Plan for 2003 that entails the assignment
for no consideration of up to 1.5 million treasury shares (corresponding to about 0.037% of Eni&#146;s share
capital) to assignment those managers of the Group who have achieved in 2002 the individual preset targets.<BR>
Eni granted 4,317,500 shares of stock (equal to 0.108% of current capital stock) subdivided as follows:
(i) in 2000 a total of 1,428,550 shares (fair value of euro 10.38); (ii) in 2001 a total of 1,851,750
shares (fair value of euro 13.71); (iii) in 2002 a total of 1,037,200 shares (fair value of euro 15.96);
(iv) in 2003 a total of 1,206,000 shares (fair value 11.20). </FONT></P>


<hr size=1 align=left width=250>
<div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=1><SUP>2</SUP>
Does not include listed subsidiaries, which have their own stock grant plans. </FONT></div>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Stock Option Plans</B></FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>2000-2001</I><BR>
The 2000-2001 Stock Option Plan provided for the exercise of options for the underwriting of Eni shares to
be issued by means of the capital stock increase approved by Eni&#146;s Shareholders&#146; Meeting of August 2,
2000, provided that the arithmetic average of Eni share prices recorded in July 2002 is equal to or higher
than euro 16.8. In light of Eni&#146;s share price trend in July 2002, options offered for the subscription of
14,369,500 Eni shares to 180 Eni Group managers at the price of euro 12.992 (the arithmetic average of
official prices recorded on the Mercato Telematico Azionario in the month preceding the date of the
Board&#146;s resolution of September 26, 2000 to increase capital) are no longer exercisable and consequently
were cancelled. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>2002</I><BR>
Eni&#146;s Shareholders&#146; Meeting of May 30, 2002 delegated to the Board of Directors the power to increase the
capital stock up to a maximum of 15 million shares (or about 0.375% of current capital stock) for Eni&#146;s
2002-2004 Stock Option Plan to be sold at an exercise price corresponding to the arithmetic average of
official prices recorded on the Mercato Telematico Azionario in the month preceding the date of their
granting to those managers of Eni SpA and its subsidiaries, as defined in art. 2359 of the Civil Code, who
are in the positions that most contribute to the Group&#146;s performance and are of strategic interest for the
Group (314 persons).<BR>
On July 2, 2002 the Board of Directors approved the Stock Option Plan for 2002 which provides for the
grant of options for the purchase of a maximum of 5 million of Eni shares. Grantees are provided the
option to purchase Eni shares at the above mentioned exercise price after three years from the option
grant. In case of agreed termination of employment or retirement or death, the grantee maintains the right
to exercise vested options within six months from termination of employment, whereas residual unvested
options expire. The sole exception is Eni SpA&#146;s Managing Director who maintains the right to exercise
options assigned to him until July 31, 2010. In case of termination decided by the assignee or by the
company within three years from grant, all options expire. Option rights not exercised before July 31,
2010 expire.<BR>
At December 31, 2002, a total of 3,518,500 options were granted for the purchase of 3,518,500 shares at
the price of euro 15.216 per share. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>2003</I><BR>
On June 19, 2003, exercising the power conferred upon it by the Shareholders&#146; Meeting of May 30, 2002, the
Board of Directors approved: (i) the Stock Option Plan for 2003 which provides for the granting of a
maximum of 6 million options for the purchase of treasury shares (corresponding to 0.1499% of Eni&#146;s share
capital) in a 1 to 1 ratio; (ii) the criteria for the selection of managers that are to participate in the
Plan; (iii) regulations for the Plan, and delegated to the Managing Director the selection of the grantees
on the basis of such criteria, before December 31, 2003. Options provide to grantees the right to purchase
Eni shares after three years from granting at a price corresponding to the higher of the arithmetic
average of official prices recorded on the Mercato Telematico Azionario in the month preceding the option
granting and the average prices of treasury shares in portfolio the day before the option granting. In
case of: (i) the agreed termination of employment; (ii) the loss of control on the part of Eni of the
company where the grantee is employed; (iii) the sale of the company or business unit where the grantee is
employed to a company not controlled by Eni; (iv) the death of grantee, the grantee, or his successors,
maintain the right to exercise vested options within six months from the event.<BR>
The weighted-average remaining contractual life of options outstanding at December 31, 2002 and 2003 is
6.6 and 7.6 years, respectively. All stock options granted are considered fixed. </FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The following is a summary of stock option activity for years 2001, 2002 and 2003</FONT></P>



<TABLE CELLPADDING=1 CELLSPACING=1 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001</B> </FONT> </TD>
     <TD ALIGN="CENTER" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD ALIGN="CENTER" COLSPAN="2"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="CENTER" COLSPAN="2"><HR size=1></TD>
     <TD ALIGN="CENTER" COLSPAN="2"><HR size=1></TD>
     <TD ALIGN="CENTER" COLSPAN="2"><HR size=1></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="40%" ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Weighted</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Weighted</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Number&nbsp;</B> </FONT> </TD>
     <TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Weighted</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of shares</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>average</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of shares&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>average</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of shares&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>average</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>exercise</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>exercise</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>exercise</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(euro) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>price </B><SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>price</B><SUP>(a)</SUP> </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>price</B><SUP>(a)</SUP> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Options as of January 1</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>14,369,500</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12.992</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12,032,000&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12.992</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,518,500&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15.216</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">New options granted </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,518,500&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.216 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,703,000&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">13.743 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Options exercised in the period </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">-&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Options cancelled in the period </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,337,500) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(12,032,000) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.992 </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(59,500) </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15.216 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Options outstanding as of December 31</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12,032,000</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>12.992</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,518,500&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15.216</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,162,000&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>14.367</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN="LEFT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of which exercisable at December 31</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>-</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>-</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>42,000&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>15.216</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>73,000&nbsp;</B> </FONT> </TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>14.802</B> </FONT> </TD></TR>
</TABLE>
<BR>
<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>(a)</FONT></TD>
     <TD WIDTH=95% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=1>Below quoted market price.</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The fair value of
stock  options  granted  during the years ended  December 31, 2000,  2002 and 2003 of
euro 1.54,  5.39 and 1.50  respectively,  were  calculated  applying  the  Black-Scholes
 method  and  using  the following assumptions: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=52% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH="12%" ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2000</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Risk-free interest rate </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.5 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3.16 </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expected life </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(year) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.85 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expected volatility </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">28&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">22&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expected dividends </FONT></TD>
     <TD ALIGN="RIGHT"><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4.5 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5.35 </FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following is a
summary of the effect of stock compensation, as required under SFAS 123: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=64% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro except per share data) </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2001</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income as reported</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,317&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,292&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,296&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Pro-forma fair value expense, net of APB 25 expense of euro (7), 0 and 0 million in 2001, 2002 and 2003, respectively </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(3) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(6) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Pro-forma net income</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,314&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,289&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,290&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Pro-forma earnings per share</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.61&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.38&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>1.66&nbsp;</B> </FONT> </TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Comprehensive
income </B><BR> U.S. GAAP requires the reporting and display of  comprehensive  income and its
components in accordance with Statement  of Financial  Accounting  Standards  No. 130,  &#147;Reporting
 Comprehensive  Income&#148;  (&#147;SFAS  130&#148;). Components  of other  comprehensive  income
 include  variations  in equity  accounts  not  attributable  to transactions  already
 recorded  in income or  transactions  with  shareholders.  Deferred  tax  effects  of
exchange  differences  from the  translation  of  functional  currency  financial
 statements  have not been recorded as provided for by SFAS 109,  which  permits the
 exclusion of the  calculation  of taxes on equity reserves of foreign subsidiaries when
the reserves are not expected to be released.</FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=78% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=6% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net income in accordance with U.S. GAAP</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,317&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>5,292&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,296&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Other comprehensive income (loss) for the period gross of income taxes</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fair value of marketable securities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">27&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">19&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exchange differences from translation of financial statements denominated in currency other than euro </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">439&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,001) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(2,136) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Exchange differences from translation in the period and other changes </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(124) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">213&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>478&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(2,106)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(1,925)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net comprehensive income for the period according to U.S. GAAP</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>6,795&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,186&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,371&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Income taxes</B><BR>
 The following  information  is presented  according to Statement of Financial  Accounting
 Standards No. 109 &#147;Accounting for Income Taxes&#148;.<BR> Domestic and foreign components of
pre-tax income are as follows:</FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=64% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=12% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Domestic </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,614&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,592&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,307&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Foreign </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,716&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,758&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,372&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>10,330&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,350&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>9,679&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The provisions for
income taxes are as follows: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Current </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,128&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,461&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,009&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">742&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(602) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(914) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,870&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,859&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,095&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The  reconciliation
 of the income tax provision  calculated  under Italian tax regulation by applying a 34%
rate (Irpeg) to pre-tax  income and 4.25% (Irap) to net value of  production,  to the
 provision  for income taxes recorded on a U.S. GAAP basis in the consolidated statements
of income is as follows: </FONT></P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>reconciliation of
the income tax</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=71% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=3% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=8% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Income before income tax in accordance with U.S. GAAP </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,330&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">8,350&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">9,679&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italian statutory tax rate (state and local) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(%) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">41.1&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">41.4&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">39.5&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD colspan=2 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Expected income tax provision in accordance with U.S. GAAP at Italian statutory tax rate </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,242&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,453&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,820&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Effect of items increasing (decreasing) the Italian statutory tax rate: </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- taxation of foreign operations at rates different from Italian statutory tax rate </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">609&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">194&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">318&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- taxes on distributable reserves </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">169&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(75) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">121&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- devaluation/revaluation of deferred tax assets </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">15&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(13) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- permanent differences </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(394) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">64&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(75) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- effects of tax credits </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(240) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(420) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(128) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- net tax effects due to the revaluation of assets (Financial Law 2004) </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(417) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- net tax effects due to the applications of Law 448/2001 </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(497) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- net tax effects due to the applications of Law 342/2000 </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(375) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(156) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(356) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(34) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(372)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(594)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(725)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Income taxes in accordance with U.S. GAAP</B> </FONT> </TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,870&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,859&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,095&nbsp;</B> </FONT> </TD></TR>
</TABLE>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Permanent  differences
 related to  2001represent  mainly the gain  recorded in the  consolidated  financial
statements  due to the  public  offering  of  40.24%  of the  share  capital  of Snam
Rete Gas SpA (euro 348 million). </FONT></P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><i>Net deferred tax
liabilities</i></FONT></P>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Net deferred tax
 liabilities  under U.S.  GAAP,  represented  by net deferred taxes recorded under &#147;Reserve
for taxes&#148;  (euro 5,782  million),  less  deferred tax assets  recorded  under  &#147;Other
 assets&#148;  (euro 1,785 million) amounted to euro 3,997 million (euro 4,060 million as of
December 31, 2002).<BR> The tax effects of significant temporary differences causing the tax
liabilities are as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Net deferred tax
liabilities</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=80% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred taxes liabilities: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- accelerated depreciations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,710&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,021&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- distributable reserves subject to taxes in case of distribution </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,236&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,437&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- excess cost paid for the acquisition of consolidated investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">847&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,245&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- successful-efforts accounting </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">626&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">451&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- capitalization of interest expense </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">248&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">250&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- reserves for uncollectible receivables </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">134&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">150&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- release of excess contingency reserves </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">104&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">89&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- gains taxable in the future </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">82&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">62&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">503&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">292&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,490&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>8,997&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax assets: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- accruals for doubtful accounts and contingencies </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,837) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,858) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- revaluation of assets in accordance with Law 342/2000 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,840) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,474) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- tax loss carryforwards </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,502) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(1,350) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- investments revaluation in accordance with Law 292/1993 and the allocation </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">of the merger difference arising from the merger of Agip SpA into Eni SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(843) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(818) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- losses of investments and subsidiaries in excess of currently allowable tax deductions </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(559) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(644) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- revaluation of fixed assets with Law 448/2001 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(628) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- writeoffs of assets deductable in the future </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(337) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(326) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- future deductable amortization </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(383) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(272) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- other </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(452) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(773) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(7,753)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(8,143)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Less: </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">- valuation allowance </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,323&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,143&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(4,430)</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>(5,000)</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Net deferred tax liabilities</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>4,060&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,997&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The  valuation
 allowance  relates to  deferred  tax assets of euro 3,143  million  (euro  3,323
 million at December 31, 2002) of  consolidated  companies  whose  expected  future
 fiscal  profits are not  considered sufficient for the utilization of these assets. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Tax loss carryforwards</I><BR>
The difference in gross tax loss carryforwards between Italian GAAP and U.S. GAAP relates to the companies
which are consolidated under Italian GAAP, but excluded from consolidation according to U.S. GAAP. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Acquisition of Italgas SpA</B><BR>
Eni&#146;s acquisition of an additional interest in Italgas during 2003 was a significant element in Eni&#146;s
strategy of expanding in the gas segment. Such strategy is based on management&#146;s expectation for the
natural gas segment in Italy and Europe. In addition, is is correlated with the Italian regulation
following Legislative Decree No. 164/2000 (see &#147;Concentrations and certain significant estimates - Gas &amp;
Power&#148;). Eni&#146;s strategy in the natural gas segment expects: (i) an increasing focalization on production,
supply and commercialisation activities with a progressive reduction in the regulated activities; (ii) the
valorization of Italian sales by the optimization of the portfolio of clients relating to the maximum
dimensional level of the Legislative Decree No. 164/2000; (iii) the development in the European markets
with an interesting prospective for the possibility of increase and profit (Iberian Peninsula, Turkey and
Germany) by taking advantage of the integrated knowledge owned by Eni in the natural gas activities.<BR>
In January 2003, Eni completed the acquisition of an additional 56.04% of Italgas SpA (Italgas) for cash
consideration of euro 2,569 million. At December 31, 2002, Eni owned 43.96% of Italgas, which was
consolidated on a line-by-line basis under Italian GAAP, while it was accounted for under the equity
method under U.S. GAAP. Italgas was fully consolidated for U.S. GAAP purposes in 2003 as a result of Eni&#146;s
acquisition of the additional interest.<BR>
Under U.S. GAAP the acquisition of Italgas has been accounted for in accordance with SFAS 141. The cost of
the acquisition was allocated to the assets acquired and liabilities assumed based on estimates of their
respective fair values at the date of acquisition. Fair values were determined based on third party
appraisals and management&#146;s estimates.<BR>
U.S. GAAP goodwill in the amount of euro 941 million resulted from the purchase price allocation. The
following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at
the date of the Italgas SpA acquisition: </FONT>
</P>


<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Acquisition of
Italgas SpA</B></FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=80% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=20% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Cash paid for stock purchased</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,569&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Allocation of purchase price for assets acquired</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Fixed assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">2,163&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Goodwill </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">941&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Investments </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">293&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Portfolio of clients </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">112&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Deferred tax </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(562) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Other assets and liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(378) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Total allocation of purchase price</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2,569&nbsp;</B> </FONT> </TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Investments </B><BR>
 At December 31, 2003, investments of euro 4,015 million include Saipem SpA, which is
publicly listed on the Italian Stock Exchange. At December 31, 2002, investments of
euro 3,900 million include shares of Italgas SpA and Saipem SpA, which are publicly
listed on the Italian Stock Exchange.<BR>
The following information includes their fair value: </FONT> </P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=36% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=17% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Eni&#146;s number</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Equity ratio</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Share price</B> </FONT> </TD>
     <TD WIDTH=17% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Market value</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>of shares</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"> (%)&nbsp; </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(milion euro) </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>December 31, 2002</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Italgas SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">153,236,124&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43.97 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">12.96 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,986&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Saipem SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">189,423,307&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43.00 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.35 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,203&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp;&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>3,189&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>December 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Saipem SpA </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">189,423,307&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">43.00 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6.459 </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">1,223&nbsp; </FONT></TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In 2003,  Saipem SpA
is included in the  consolidation  under Italian GAAP,  while,  under U.S.  GAAP, it is
valued  under the equity  method.  In 2002  Italgas SpA and Saipem SpA were  included  in
the  consolidation under Italian GAAP, while, under U.S. GAAP, they were valued under the
equity method. <BR>Information about these investments, representing a 100% share of the
companies, is as follows: </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=2 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=55% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2002</B> </FONT> </TD>
     <TD WIDTH=15% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>Dec. 31, 2003</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total assets </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">10,234&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,098&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Total liabilities </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,886&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">3,584&nbsp; </FONT></TD></TR>
<TR>
      <TD><FONT SIZE="1">&nbsp; </FONT></TD>
      <TD> </TD>
      <TD> </TD>
      <TD> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">(million euro) </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2001&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2002&nbsp;</B> </FONT> </TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1"><B>2003&nbsp;</B> </FONT> </TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net sales from operations </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">5,533&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">6,385&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">4,217&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Operating income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">714&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">835&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">358&nbsp; </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">Net income </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">227&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">587&nbsp; </FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="1">254&nbsp; </FONT></TD></TR>
</TABLE>



<!-- MARKER FORMAT-SHEET="times just bold" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Concentrations and
certain significant estimates</B> <BR>The  following  information  is presented  according to
Statement of Position 94-6  &#147;Disclosures  of Certain Significant Risks and Uncertainties&#148;.</FONT></P>

<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Nature of operations</I><BR>
Eni is an integrated energy company operating in the oil and gas, electricity generation, petrochemicals
and oilfield services and engineering industries. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>EXPLORATION &amp; PRODUCTION: </B> through Exploration &amp; Production Division and subsidiaries, Eni engages in
hydrocarbon exploration and production in Italy, North Africa (Algeria, Egypt, Libya and Tunisia), West
Africa (Angola, Congo and Nigeria), the North Sea (Norway and the United Kingdom), Latin America
(Venezuela and Ecuador), the former Soviet Union countries, mainly Kazakhstan, the United States (mainly
in the Gulf of Mexico) and Asia (mainly Iran, Indonesia and Pakistan). In 2003 approximately 70% of oil
production sold was supplied to Eni&#146;s Refining &amp; Marketing segment and approximately 40% of natural gas
production sold was supplied to Eni&#146;s Gas &amp; Power segment.<BR>
Eni owns a storage system made up by a number of depleted fields used for the modulation of supply in
accordance with seasonal swings in demand (natural gas is stored in the summer and used in the winter), as
strategic reserve to ensure supply and to support domestic production through mineral storage. Storage
assets are owned by Stoccaggi Gas Italia (Eni 100%), a company constituted in accordance with Law Decree
No. 164 of May 23, 2000 that introduced laws for the liberalization of the Italian natural gas market. </FONT></P>


<TABLE BORDER="0" CELLPADDING="0" CELLSPACING="0">
<TR VALIGN="TOP">
     <TD COLSPAN=2><div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>GAS &amp; POWER: </B>Eni is engaged in the supply, transmission and sale of natural gas in Italy and outside Italy
through its Gas &amp; Power Division, which was constituted by the incorporation of Snam SpA into Eni SpA in
2002, and through certain subsidiaries. Approximately 80% of total purchases for primary distribution are
purchased from foreign sources (primarily Algeria, Russia, The Netherlands and Norway) under long-term
contracts, which contain take-or-pay provisions, and transported to Italy through a network of over 3,700
kilometers international pipelines of which Eni owns the transmission rights. The remaining purchases for
primary distribution in Italy are obtained principally from domestic gas of Eni&#146;s Exploration &amp; Production
segment. Through an approximately 30,000-kilometer long network (corresponding to 96% of the Italian
domestic natural gas network), Eni supplies natural gas to residential and commercial users (civil
market), industrial users and the thermoelectric segment. Snam Rete Gas (Eni 59.12%), that was constituted
in accordance with Law Decree No. 164/2000, owns the pipelines network used by Eni. Snam Rete Gas, a
company listed on the Italian stock exchange, engages in natural gas transportation activities also for
other operators of the segment. Through Italgas (Eni 100%), the largest retail gas distribution company in
Italy, Eni engages in local gas distribution segment &#150; retail supply and urban civil and commercial
distribution. Eni also participates in local distribution outside Italy, in Argentina through
Distribuidora de Gas Guyana, in Hungary through Tigaz and Tigaz 2 and in Slovenia through Adriaplin Doo.<BR>
Legislative Decree No. 164 of May 23, 2000 introduced laws for the liberalization of the Italian natural
gas market with great impact on Eni&#146;s activities, as the company is present in all the phases of the
natural gas chain. The most important aspects of the decree are the following: </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD WIDTH=3%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD WIDTH=97%><div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">total free market after 2003; </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2"> until December 31, 2010 the imposition of thresholds to operators in relation to a percentage share of
domestic consumption set as follows: (i) 75%, by 2002, for imported or domestically produced natural
gas volumes introduced in the domestic transmission network. This percentage decreases by 2 percentage
points per year until it reaches 61% in 2009; (ii) 50% from January 1, 2003 for sales to final
customers. These ceilings are calculated net of losses and own consumption; </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">tariffs for transport, dispatching, storage, use of LNG terminals and local network distribution are
set by Authority for Electricity and Gas; </FONT> </div></TD></TR>
<TR VALIGN="TOP">
     <TD><FONT FACE="Times New Roman, Times, Serif" SIZE="2">- </FONT> </TD>
     <TD><div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE="2">third parties will be allowed to access the regulated transmission system. </FONT> </div></TD></TR>
</TABLE>
<div ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Eni through  EniPower
SpA (Eni 100%) and  subsidiaries is engaged in generation and sale of electricity with a
capacity of 1,930 megawatts through the power plants in Livorno,  Taranto,  Mantova,
Ravenna, Brindisi and Ferrera  Erbognone and a generation of about 5.55  terawatthours
 and  approximately 30% of this is used for internal  consumption.  EniPower manages the
electrical  development  opportunities.  The demand for gas and fuel oils of EniPower&#146;s
stations is met by Eni supplies. </FONT></div>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>REFINING &amp; MARKETING: </B>Eni, through its Refining &amp; Marketing Division, which was constituted by the
incorporation of AgipPetroli SpA in Eni SpA in 2002 and certain subsidiaries, engages in petroleum
refining and marketing activities primarily in Italy, Europe and South America. Eni is the largest refiner
of petroleum products in Italy in terms of overall refining capacity. Approximately 50% of crude oil sold
is purchased from producing countries pursuant to purchase contracts (28%) and in international spot
markets (20%), while the remainder is obtained from Eni&#146;s Exploration &amp; Production segment. Approximately
50% of the purchased crude oil is traded. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>PETROCHEMICALS: </B>through Polimeri Europa SpA and subsidiaries (Eni 100%), Eni engages in manufacturing of
olefins, aromatics, intermediate products, styrene and elastomers. Eni&#146;s petrochemicals production is
concentrated in Italy, the other operations being primarily in Western Europe. Approximately 30% of the
oil-based feedstock requirements used by petrochemical plants are supplied by Eni&#146;s Refining &amp; Marketing
segment. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>OILFIELD SERVICES CONTRRUCTION AND ENGINEERING: </B>through Saipem SpA (Eni 43%), a company listed on the
Italian stock exchange, and its subsidiaries, Eni is engaged in construction and drilling services to
customers in the oil and gas industries. Through Snamprogetti SpA (Eni 100%) and subsidiaries, Eni is a
leading provider of engineering and project management services to customers in the oil and gas and
petrochemical industries. At December 31, 2003 approximately 10% of the order backlog of Eni&#146;s Oilfield
Services, Construction and Engineering segment related to orders from Eni Group companies. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><I>Certain significant estimates</I><BR>
The preparation of the financial statements in conformity with Italian GAAP, along with the reconciliation
to U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. </FONT></P>

<P ALIGN=JUSTIFY>
<FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Changes in accounting principles</B><BR>
As of January 1, 2003, Eni SpA adopted the Statement of Financial Accounting Standards No. 143 (SFAS 143),
&#147;Accounting for Asset Retirement Obligations,&#148; which applies to legal obligations associated with the
retirement and removal of long-lived assets. SFAS 143 requires entities to record the fair value of a
liability for an asset retirement obligations (ARO) in the period when it is incurred (typically at the
time the asset is installed at the productions location). When the liability is initially recorded, the
entity capitalizes the cost by increasing the carrying amount of the related properties, plants and
equipment. Over time, the liabilities are increased for the change in their present value each period, and
the initial capitalized costs will be depreciated over the useful lives of the related assets. The
recognized liability amounts are based upon future retirement cost estimates and incorporate many
assumptions such as expected recoverable quantities of crude oil and natural gas, time to abandonment,
future inflation rates and the risk-free rate of interest adjusted for the Company&#146;s credit costs.<BR>
No significant legal obligations to retire refining, transportation, marketing (downstream) and chemical
long-lived assets generally were recognized, as indeterminate settlement dates for the asset retirements
prevented estimation of the fair value of the associated ARO. 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.<BR>
The primary impact of SFAS 143 is to change the method of accruing for upstream site restoration costs.
Upstream costs were previously accrued ratably over the productive lives of the assets in accordance with
Statement of Financial Accounting Standards No. 19 (SFAS 19), &#147;Financial Accounting and Reporting by Oil
and Gas Producing Companies&#148;.<BR>
The transition adjustment related to adopting SFAS 143 on January 1, 2003, was recognized as a cumulative
effect of a change in accounting principle. The cumulative effect of adopting SFAS 143 increased net
income by euro 198 million (after reduction of income taxes of euro 207 million). At the time of adoption,
net fixed assets increased by euro 403 million, reserves for contingencies decreased by euro 2 million,
and deferred and other non-current income tax liabilities increased by euro 207 million. Other than the
cumulative effect net charge, the effect of SFAS 143 on net income in 2003 was an incremental charge of
euro 53 million after tax, as compared to the result that would have been recorded under SFAS 19
accounting. </FONT></P>

<!-- MARKER FORMAT-SHEET="times just" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Changes in asset
retirement obligations during the year were: </FONT></P>


<BR><BR>
<table width="60%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Changes in asset retirement obligations </FONT></td>
  <td align="right" valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Pro-forma 2002 <SUP>(a)</SUP></STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2003</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Asset retirement obligations as of January 1</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,096</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,923</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Accretion of discount </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">89 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">102 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">New obligations incurred during 2003 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">52 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Spending on existing obligations </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(21) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Property dispositions </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(20) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Foreign currency translation </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(335) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(155) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of previous estimates </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">32 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Other adjustments </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">73 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">37 </FONT> </td>
 </tr>
 <tr>
  <td width="65%"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Asset retirement obligations as of December 31</STRONG> </FONT> </td>
  <td width="20%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,923</STRONG> </FONT> </td>
  <td width="15%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,950</STRONG> </FONT> </td>
 </tr>
</table>
<br>
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr>
  <td width="5%" valign="top" class="xl28"><font size="1" face="Times New Roman, Times, serif">(a)</font></td>
  <td width="95%"><font size="1" face="Times New Roman, Times, serif"> Pro-forma data as if SFAS 143 had been adopted on
    January 1, 2002. If adopted, income before cumulative effect
    of changes in accounting principles for 2002 would have been increased
  by euro 2 million and earnings per share would have been the same. </font></td>
 </tr>
</table>
<p align="justify"><font face="Times New Roman, Times, serif"><strong><font size="2">Recent accounting pronouncements </font></strong></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"><i>FIN 46 and FIN 46-R<br>
</i>In January 2003, the FASB issued FIN 46, &#147;Consolidation
 of Variable Interest Entities&#148;. FIN 46 introduces a new concept of a variable
 interest entity (&#147;VIE&#148;).
 A VIE is an entity that meets any of the following criteria: (i) it has a
 total equity investment at risk that is not sufficient to finance its activities
 without additional subordinated financial support from other parties; (ii)
 the equity owners do not have the ability to make significant decisions about
 the entity's activities through voting or similar rights; (iii) the equity
 owners do not have an obligation to absorb the entity's expected losses,
 or (iv) the equity owners do not have the right to receive the entity's expected
 residual returns. FIN 46 is effective immediately for all new VIEs created
 after January 31, 2003. For VIEs created prior to February 1, 2003, FIN 46 will
 be effective for the company as of January 1, 2004. The disclosure requirements
 of FIN 46 are effective for our 2003 financial statements regardless of the
 date the VIE was created.<br>
 In December 2003 the Financial Accounting Standards Board issued
 FASB Interpretation No. 46-R, Consolidation of Variable Interest Entities
 Revised. FIN 46-R modifies the scope exceptions provided in FIN 46, specifically
 related to the entities that meet the revised definition of a business, or would
 result in the consolidation of a government entity. Early adoption of FIN 46-R
 related to entities created after January 31, 2003 is permitted.<br>
 The Company
 has decided not to early adopt FIN 46-R and has implemented the provisions of
 FIN 46 as it relates to any potential VIEs created after January 31, 2003. There
 were no impacts upon the initial adoption of the provisions of FIN 46 with respect
 to Eni entities created after January 31, 2003. For VIEs created prior to February
 1, 2003, Eni shall apply the provisions of FIN 46 during fiscal year 2004, and
 Eni is in the process of reviewing its investment portfolio, including associated
 companies, as well as other arrangements to determine whether Eni is the primary
 beneficiary of any VIEs. Eni presently cannot predict whether or not the application
 of FIN 46 to VIEs created prior to February 1, 2003 will have a material impact
 on Eni's financial position or operating results.</font></p>
<p align="justify"><font face="Times New Roman, Times, serif"><strong><font size="2">Introduction of international accounting standards </font></strong></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">As a consequence
  of the coming into force of European Regulation No. 1606/2002 of the European
  Parliament and European Council of July 19, 2002 (&#147;Regulation&#148;),
 starting in 2005 companies with securities listed on regulated markets of EU
 member states are required to prepare their consolidated financial statements
 in accordance with international accounting standards (&#147;IAS&#148;).</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"> In order
  to comply with the requirements of this Regulation, from July 2002 Eni started
  its program for implementing IASs by creating study groups on specific
  issues, made up of Eni SpA and Eni Group companies employees, entrusted with
  the task to define a proposal for the revision of Group accounting rules, highlight
  the differences with current policies for Italian GAAP and U.S. GAAP
  and provide support to the analysis of the effects of the adoption of IAS on
  information systems. Study groups addressed the provisions of current IASs
  and the main changes contained in the draft review of International Accounting
 Standards.</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"> In
December a proposal for the review of Group accounting rules concerning
the most significant items of financial statements was defined, which
is currently under further scrutiny in consideration of recent IASB interpretations.</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"> Within
  each Division/Sector-head company a manager has been entrusted with the
  responsibility to monitor the impact on operations, identify the necessary
  changes to administrative processes and information systems and share
  individual solutions identified with the rest of the Group. Eni also
  intends to carry out training sessions for disseminating information
  on the most relevant consequences of the application of international
  standards, on possible operating problems and for sharing the solutions
  agreed. The introduction of new standards is facilitated by the experience
  gained by Eni in the application of U.S. GAAP.</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">As
   compared to currently applied accounting rules, the innovative aspects
  are: (i) the recognition of charges to risk and contingency reserves on the
  basis of the present value of expected expenses when the passing of time (accretion)
   is relevant; (ii) the use of actuarial techniques for the evaluation
  of employee termination indemnities; (iii) the elimination of the Lifo criterion
  for the evaluation of inventories; (iv) the fact that, as in U.S. GAAP, goodwill
   is not amortized but tested for impairment at least annually, at
  the level of the smallest cash generating unit, by comparing book value and
  market value (draft standard on business combinations); (v) the adoption of
  fair value in the evaluation of investments in companies that are neither subsidiaries
   nor affiliates.</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"> With
  specific reference to exploration and production activities, no discontinuity
  is evidenced with current criteria, as current IASs do not apply to recognition
  and evaluation criteria. In January 2004, IASB published a draft accounting
  standard &#147;Exploration for and evaluation of mineral resources&#148; which allows
  to maintain current criteria for recognizing and evaluating exploration
  costs (e.g. geological and geophysical studies; acquisition of exploration
  permits; exploration wells, etc.), including their recognition as assets (so
 called exploration and evaluation assets).</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"> With
  reference to financial instruments, serious uncertainties exist on the recognition
  and evaluation criteria applicable from 2005. In particular, the European Commission,
  in its Regulation No. 1725 of September 29, 2003, did not adopt IAS 32 &#147;Financial instruments: disclosure and presentation&#148;, IAS 39 &#147;Financial
   instruments: recognition and measurement&#148; and their respective interpretations;
   the updated versions of these principles, issued in December 2003
 by the IASB, are under review.</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"> At the
  date of transition to the new standards, corresponding to the first period
  to be compared (in Eni's case January 1, 2004) accounts are prepared that:
  (i) recognize only all the assets and liabilities defined as such by the new
  standards and (ii) classify and evaluate assets and liabilities with the values
  that would have been determined if the new standards had been applied from
  the initial recognition. The effect of the adjustment of initial balances of
  assets and liabilities to the new standards is recognized under net equity.<br>
 The retroactive adoption of IAS may be subject to derogation if
  it causes costs higher than the benefits it produces in terms of information
  or to prohibitions if it entails a high degree of discretionary power
  in evaluation. Derogations and prohibitions are expressly stated in the
  EU regulation that also defines the applicable treatment.</font></p>

<p align="justify">
<FONT FACE="Times New Roman, Times, serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;<B>Subsequent events</B>
</font></p>

<p align="justify">
<FONT FACE="Times New Roman, Times, serif" SIZE="2">
The main subsequent events occurred are as follows:</font></p>

<p align="justify">
<FONT FACE="Times New Roman, Times, serif" SIZE="2">
&#149; at the end of March 2004, Eni sold 9.054% of the share capital of Snam Rete Gas SpA, recognizing a
material gain on disposal and material proceeds. Proceeds will be recognized in the cash flow for the
second quarter of 2004;
</font></p>

<p align="justify">
<FONT FACE="Times New Roman, Times, serif" SIZE="2">
&#149; in April 2004 Eni signed an agreement with the Portuguese Government for the reorganization of Galp
Energia (Eni&#146;s interest 33.34%). Under the agreement Eni concentrates its activities in the natural gas
sector through a 49% interest in Gas de Portugal (indirectly owned through Galp Energia) and exits the
segment of refining and marketing of refined products in Portugal. Gas de Portugal will be managed jointly
with Electricidade de Portugal, the other shareholder with a 51% interest; the natural gas transmission
network owned by Gas de Portugal will be sold to a state-owned Portuguese company. The finalization of Eni
sale of stake in Galp Energia and its purchase of a 49% stake in Gas de Portugal is subject to
authorization from the European antitrust authority; in a second stage the sale of regulated assets owned
by Gas de Portugal will be submitted to the Portoguese antitrust authority. When finalized, this
transaction will provide Eni net cash proceeds of euro 667 million. See &#147;Item 4 - Information on the company
 - Gas &amp; Power&#148;.
</font></p>


<p align="justify">
<FONT FACE="Times New Roman, Times, serif" SIZE="2">
&#149; in February 2004, under the North Caspian Sea PSA (Eni is operator with a 16.67% interest), the
development plan of the Kashagan oil field located in the Kazakh section of the Caspian Sea was approved
by the relevant Kazakh Authorities. The approved development plan consists of multiple phases; management
expects production to start in 2008. Total planned capital expenditure is estimated at U.S. dollar 29
billion, being Eni&#146;s share in the range of U.S. dollar 5 billion.
</font></p>

<p align=justify><FONT FACE="Times New Roman, Times, serif" SIZE="2"><B>Supplemental oil and gas information for the exploration and production
activities (unaudited) <br>
</B>The
following information is presented in accordance with the Statement of
Financial Accounting Standards No. 69, &#147;Disclosures about
Oil &amp; Gas Producing
Activities&#148;. Amounts related to minority interests are not significant. </FONT> </p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"><em>Capitalized
   costs <br>
</em>Capitalized costs represent the total expenditures
 for proved and unproved mineral interests and related support equipment and
 facilities utilized in oil and gas exploration and production activities,
together with related accumulated depreciation, depletion and amortization.
</font></p>
<table width="90%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Capitalized costs</STRONG> </FONT> </td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
 </tr>
 <tr>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td width="46%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
  <td width="9%" align="center" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy</STRONG> </FONT> </td>
  <td width="9%" align="center" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Africa</STRONG> </FONT></td>
  <td width="9%" align="center" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West Africa</STRONG> </FONT></td>
  <td width="9%" align="center" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Sea</STRONG> </FONT></td>
  <td width="9%" align="center" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest of World</STRONG> </FONT></td>
  <td width="9%" align="center" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>At December 31, 2002</STRONG> </FONT> </td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Proved mineral interests <SUP>(a)</SUP> </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,030 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6,782 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6,377 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,112 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">5,638 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">34,939 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Unproved mineral interests </FONT> </td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">527 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">130 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">684 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,593 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,934 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Support equipment and facilities </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">251 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">43 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">174 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">49 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">51 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">568 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Incomplete wells and other </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">773 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">889 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">795 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">147 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,958 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,562 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Gross capitalized costs</STRONG> </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,054</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,241</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,476</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,992</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,240</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>43,003</STRONG> </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Accumulated depreciation, depletion and amortization </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,427) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,090) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,048) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,192) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,262) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(20,019) </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Net capitalized costs</STRONG> </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,627</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,151</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,428</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,800</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>6,978</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>22,984</STRONG> </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>At December 31, 2003</STRONG> </FONT> </td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"></div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Proved mineral interests <SUP>(a)</SUP> </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,766 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6,103 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6,141 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,291 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6,389 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">35,690 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Unproved mineral interests </FONT> </td>
  <td align="right" valign="top"><div align="right"></div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">329 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">83 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">696 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,272 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,380 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Support equipment and facilities </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">262 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">594 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">208 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">32 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">51 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,147 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Incomplete wells and other </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">826 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,254 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,098 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">223 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,413 </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,814 </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Gross capitalized costs</STRONG> </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,854</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,280</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,530</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,242</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,125</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>44,031</STRONG> </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Accumulated depreciation, depletion and amortization </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,186) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,799) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,785) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,252) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,657) </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(20,679) </FONT> </div></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Net capitalized costs <SUP>(b)</SUP></STRONG> </FONT> </td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,668</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,481</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,745</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,990</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>6,468</STRONG> </FONT> </div></td>
  <td align="right" valign="top"><div align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>23,352</STRONG> </FONT> </div></td>
 </tr>
</table>
<BR>
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr>
  <td width="5%" valign="top"><div align="justify"><font size="1" face="Times New Roman, Times, serif">(a) </font></div></td>
  <td width="95%"><div align="justify"><font size="1" face="Times New Roman, Times, serif">Includes capitalized costs for wells and facilities related
  to proved reserves.</font></div></td>
 </tr>
 <tr>
  <td valign="top"><div align="justify"><font size="1" face="Times New Roman, Times, serif">(b)</font></div></td>
  <td><div align="justify"><font size="1" face="Times New Roman, Times, serif">Includes
     euro 385 million for the adoption of SFAS 143 &#147;Accounting for
    asset retirement obligations&#148;. The amount has been allocated to the following
  items:</font></div></td>
 </tr>
 <tr>
  <td><div align="justify"><font size="2" face="Times New Roman, Times, serif"><font size="1"><font face="Times New Roman, Times, serif"></font></font></font></div></td>
  <td><div align="justify"><font size="1" face="Times New Roman, Times, serif">Proved mineral interest euro 1,119 million and Accumulated depreciation,
  depletion and amortization euro 734 million.</font></div></td>
 </tr>
</table>
<p align="justify"><font face="Times New Roman, Times, serif"><em><font size="2">Cost incurred </font></em></font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif">Costs incurred represent amounts both capitalized and expensed in connection
 with oil and gas producing activities.
</font></p>
<table width="90%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td width="46%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy</STRONG> </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Africa</STRONG> </FONT></td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West Africa</STRONG> </FONT></td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Sea</STRONG> </FONT></td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest of World</STRONG> </FONT></td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Year ended December 31, 2001</STRONG> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Proved property acquisitions </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">14 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">503 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,411 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,254 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,182 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Unproved property acquisitions </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">438 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">495 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">704 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,637 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Exploration </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">89 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">139 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">97 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">166 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">598 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,089 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Development </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">600 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">498 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">698 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">328 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,337 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,461 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total costs incurred <SUP>(a)</SUP></STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>703</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,578</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>795</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,400</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,893</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,369</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Year ended December 31, 2002</STRONG> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Proved property acquisitions </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">104 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">24 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">128 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Unproved property acquisitions </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">22 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">167 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">189 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Exploration </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">69 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">116 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">203 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">84 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">430 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">902 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Development </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">440 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">724 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">986 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">316 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,622 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,088 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total costs incurred</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>509</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>840</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,189</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>526</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,243</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,307</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Year ended December 31, 2003</STRONG> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Proved property acquisitions </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">308 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">316 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Unproved property acquisitions </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">125 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">131 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Exploration </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">67 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">80 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">138 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">125 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">243 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">653 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Development <SUP>(b)</SUP> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">449 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,106 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,268 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">286 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,454 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,563 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total costs incurred <SUP>(c)</SUP></STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>516</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,186</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,406</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>844</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,711</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,663</STRONG> </FONT> </td>
 </tr>
</table>

<BR>
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr>
  <td valign="top"><font size="1" face="Times New Roman, Times, serif">(a)</font></td>
  <td><div align="justify"><font size="1" face="Times New Roman, Times, serif">Includes
     costs for the acquisition of Lasmo Plc of euro 5,084 million,
     net of the related gross-up for deferred taxes (SFAS 109 &#147;Accounting for Income
    taxes&#148;) of euro 974 million. <br>
    The amount has been allocated to the following items: (i) Proved property
    acquisitions euro 3,115 million, (ii) Unproved property acquisitions euro
    1,637 million,<br>
  (iii) Exploration euro 332 million.</font></div></td>
 </tr>
 <tr>
  <td valign="top"><font size="1" face="Times New Roman, Times, serif">(b)</font></td>
  <td><div align="justify"><font size="1" face="Times New Roman, Times, serif">Includes
     euro 84 million of costs capitalized during 2003 for assets
     retirement obligations pursuant to SFAS 143 &#147;Accounting for asset
  retirement obligations&#148;</font></div></td>
 </tr>
 <tr>
  <td width="5%" height="60" valign="top"><p><font size="1" face="Times New Roman, Times, serif">(c) </font></p></td>
  <td width="95%"><p align="justify"><font size="1" face="Times New Roman, Times, serif">Includes
     costs for the acquisition of Fortum AS of euro 434 million,
     net of the related gross-up for deferred taxes (SFAS 109 &#147;Accounting
   for Income taxes&#148;) of euro 514 million.<br>
   The amount has been allocated to the North Sea area as follows: (i) Proved
   property acquisitions euro 308 million, (ii) Unproved property acquisitions
   euro 109 million,<br>
  (iii) Exploration euro 17 million.</font></p></td>
 </tr>
</table>
<p align="justify"><font face="Times New Roman, Times, serif"><em><font size="2">Results
    of operations from oil and gas producing activities <br>
</font></em><font size="2">Results
 of operations from oil and gas producing activities, including gas storage
services used to modulate the seasonal variation of demand, represent only those
revenues and expenses directly associated to such activities. These amounts do
not include any allocation of interest expense or corporate overhead or amortization
of goodwill and, therefore, are not necessarily indicative of the contributions
to consolidated net earnings of Eni. Related income taxes are computed by applying
the local income tax rates to the pre-tax income from producing activities. Eni
is a party to certain Production Sharing Agreements (PSAs) whereby a portion
of Eni's share of oil and gas production is withheld and sold by its joint venture
partners which are state-owned entities, with proceeds being remitted to the
state in satisfaction of Eni's PSA-related tax liabilities. Revenue and income
taxes include such taxes owed by Eni but paid by state-owned entities out of
Eni's share of oil and gas production.</font></font></p>
<table width="90%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td colspan="7"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Results of operations from oil and
gas producing activities</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
  <td align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy</STRONG> </FONT> </td>
  <td align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North
Africa</STRONG> </FONT> </td>
  <td align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West
Africa</STRONG> </FONT> </td>
  <td align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North
Sea</STRONG> </FONT> </td>
  <td align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest
of World</STRONG> </FONT> </td>
  <td align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Year ended December 31, 2001</STRONG> </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Revenues:</STRONG> </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales to affiliates </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,160 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,440 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,807 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,265 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">322 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">7,994 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales to unaffiliated entities </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">140 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,181 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">169 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,250 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,271 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,011 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total revenues</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,300</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,621</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,976</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,515</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,593</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>12,005</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Operations costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(327) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(337) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(221) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(495) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(270) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,650) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production taxes </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(152) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(124) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(256) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(27) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(36) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(595) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Exploration expenses </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(77) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(104) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(70) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(51) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(326) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(628) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">D.D. &amp; A. and abandonment expense </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(474) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(417) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(315) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(704) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(612) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,522) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Other income and (expenses) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(87) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(129) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(129) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(79) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(214) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(638) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Pretax income from producing activities</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,183</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,510</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>985</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,159</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>135</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,972</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Estimated income taxes </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(877) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(605) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(628) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(672) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(136) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,918) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Results of
operations from E&amp;P activities</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,306</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>905</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>357</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>487</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>(1)</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,054</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Year ended December 31, 2002</STRONG> </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Revenues:</STRONG> </FONT> </td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
 </tr>
 <tr>
  <td width="46%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales to affiliates </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,871 </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,673 </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,856 </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,748 </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">281 </FONT> </td>
  <td width="9%" align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,429 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales to unaffiliated entities </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">253 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,226 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">186 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">695 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,414 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,774 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total revenues</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,124</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,899</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,042</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,443</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,695</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>12,203</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Operations costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(218) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(352) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(317) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(490) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(237) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,614) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production taxes </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(138) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(110) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(210) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(20) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(47) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(525) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Exploration expenses </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(80) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(71) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(116) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(117) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(294) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(678) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">D.D. &amp; A. and abandonment expense <SUP>(a)</SUP> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(528) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(532) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(390) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(863) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(758) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,071) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Other income and (expenses) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(258) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(186) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(122) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(47) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(183) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(796) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Pretax income from producing activities</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,902</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,648</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>887</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>906</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>176</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,519</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Estimated income taxes </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(751) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(852) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(578) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(445) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(83) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,709) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Results of
operations from E&amp;P activities</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,151</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>796</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>309</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>461</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>93</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,810</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Year ended December 31, 2003</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Revenues:</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales to affiliates </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,609 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,469 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,946 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,913 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">345 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,282 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales to unaffiliated entities </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">153 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,188 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">164 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">822 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,595 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,922 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total revenues</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,762</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,657</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,110</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,735</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,940</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>12,204</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Operations costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(222) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(316) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(283) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(446) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(235) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,502) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production taxes </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(136) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(97) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(235) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(11) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(79) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(558) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Exploration expenses </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(89) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(70) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(113) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(96) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(276) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(644) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">D.D. &amp; A. and abandonment expense <SUP>(a)</SUP> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(458) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(420) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(377) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(759) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(734) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,748) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Other income and (expenses) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(170) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(264) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(121) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">14 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(289) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(830) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Accretion expense (SFAS 143) <SUP>(b)</SUP> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(37) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(14) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(42) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(102) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Pretax income from producing activities</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,650</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,485</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>967</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,395</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>323</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,820</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Estimated income taxes </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(629) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(788) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(617) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(750) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(111) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,895) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Results of
operations from E&amp;P activities</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,021</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>697</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>350</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>645</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>212</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,925</STRONG> </FONT> </td>
 </tr>
</table>
<BR>
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr>
  <td width="5%" valign="top"><div align="justify"><font size="1" face="Times New Roman, Times, serif">(a)</font></div></td>
  <td width="95%"><div align="justify"><font size="1" face="Times New Roman, Times, serif">Includes assets impairments amounting to euro 227 million in
  2002 and euro 210 million in 2003.</font></div></td>
 </tr>
 <tr>
  <td valign="top"><div align="justify"><font size="1" face="Times New Roman, Times, serif">(b)</font></div></td>
  <td><div align="justify"><font size="1" face="Times New Roman, Times, serif">Represents
     the financial effect of the passage of time relating to Eni's
     future asset retirement obligations pursuant to SFAS 143 &#147;Accounting for asset
  retirement obligations&#148;.</font></div></td>
 </tr>
</table>
<p><em><strong><font size="2" face="Times New Roman, Times, serif">Average sales prices and production costs per unit of production </font></strong></em></p>
<table width="80%" cellspacing="2" cellpadding="0" align=center>
 <tr>
  <td width="40%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td width="10%" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy</STRONG> </FONT> </td>
  <td width="10%" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North


Africa</STRONG> </FONT> </td>
  <td width="10%" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West Africa</STRONG> </FONT> </td>
  <td width="10%" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Sea</STRONG> </FONT> </td>
  <td width="10%" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest of World</STRONG> </FONT> </td>
  <td width="10%" align="center"> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><hr size=1></td>
  <td align="right"><hr size=1></td>
  <td align="right"><hr size=1></td>
  <td align="right"><hr size=1></td>
  <td align="right"><hr size=1></td>
  <td align="right"><hr size=1></td>
 </tr>
 <tr>
  <td><p><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2003</STRONG> </FONT> </p></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td><p><FONT FACE="Times New Roman, Times, serif" SIZE="1">Average sales prices: </FONT> </p></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Oil and condensates, per BBL </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 24.24 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 27.14 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 27.60 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 28.37 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 21.53 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 26.29 </FONT> </td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Natural gas, per kCF </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4.65 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.86 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">0.53 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.11 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.18 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.56 </FONT> </td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Average production costs, per BOE (1) </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.77 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.70 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">6.21 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4.19 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.26 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4.16 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2002</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td><p><FONT FACE="Times New Roman, Times, serif" SIZE="1">Average sales prices: </FONT> </p></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Oil and condensates, per BBL </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 22.39 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 23.49 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 23.62 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 23.97 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 18.90 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 22.81 </FONT> </td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Natural gas, per kCF </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.73 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.83 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">0.42 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.46 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.90 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.08 </FONT> </td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Average production costs, per BOE (1) </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.97 </FONT></td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.44 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">5.75 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4.37 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.94 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.83 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2001</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Average sales prices: </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Oil and condensates, per BBL </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 19.78 </FONT></td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 22.39 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 22.34 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 23.87 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 17.86 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">$ 21.81 </FONT> </td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Natural gas, per kCF </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4.06 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.80 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">0.51 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.60 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.24 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.39 </FONT> </td>
 </tr>
 <tr>
  <td> <FONT FACE="Times New Roman, Times, serif" SIZE="1">Average production costs, per BOE (1) </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">2.87 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.65 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">5.10 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">4.45 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.50 </FONT> </td>
  <td align="right" valign="top"> <FONT FACE="Times New Roman, Times, serif" SIZE="1">3.85 </FONT> </td>
 </tr>
</table>
<BR>
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr valign="top">
  <td width="5%"><font size="1" face="Times New Roman, Times, serif"> (1)</font></td>
  <td width="95%"><font size="1" face="Times New Roman, Times, serif"> Calculated net of volumes of natural gas consumed in operations.
   Natural gas was converted to oil-equivalent at 5,800 CF = 1 BBL for natural
   gas produced outside Italy and at 5,600 CF = 1 BBL for natural gas produced
  in Italy . </font></td>
 </tr>
</table>
<p align="justify"><font face="Times New Roman, Times, serif"><em><font size="2">Oil
    and natural gas reserves<br>
</font></em><font size="2">Proved oil and gas reserves are the estimated
 quantities of crude oil, natural gas and natural gas liquids which geological
 and engineering data demonstrate with reasonable certainty to be recoverable
 in future years from known reservoirs under technical, contractual, economic
 and operating conditions existing at the time. Prices include consideration
 of changes in existing prices provided only by contractual arrangements,
but not on escalations based upon future conditions. Proved reserves exclude
royalties and interests owned by others.<br>
Proved developed reserves are proved
reserves that can be estimated to be recovered through existing wells with existing
equipment and operating methods.<br>
Proved undeveloped oil and gas reserves are reserves
that are expected to be recovered from new wells on undrilled acreage, or from
existing wells where a relatively major expenditure is required for completion.<br>
Additional
oil and gas reserves expected to be obtained through the application of fluid
injection or other improved recovery techniques for supplementing natural forces
and mechanisms of primary recovery are included as proved developed reserves
only after testing by a pilot project or after the operation of an installed
program has confirmed through production response that increased recovery will
 be achieved.<br>
 The estimates of Eni's reserve quantities have been prepared
in accordance with Statement of Financial Accounting Standard No. 69. The estimates
of proved reserves, developed and undeveloped, at December 31, 2000, 2001, 2002
and 2003 are based on data prepared by Eni.<br>
</font></font><font size="2" face="Times New Roman, Times, serif">Eni
  operates under Production Sharing Agreements (PSAs) in several of the
  foreign jurisdictions where it has oil and gas exploration and production
activities. In countries where Eni operates under PSAs, proved reserves are shown
  in accordance with Eni's economic interest (pursuant to PSA contract
terms) in the oil and gas reserve quantities estimated to be recoverable in future
  years. Such reserves include estimated quantities allocated to Eni for
recovery of costs, income taxes owed by Eni but settled by its joint venture
partners (which are state-owned entities) out of Eni's share of production, and
Eni's net equity share after cost recovery. Proved oil and gas reserves associated
  with PSAs represents 46% , 43% and 41% of total proved reserves as of
year-end 2003, 2002 and 2001, respectively, on an oil-equivalent basis. <br>
 Proved reserves
 include the volume of natural gas used for own consumption and volumes of
 natural gas held in certain Eni storage fields in Italy . Proved reserves
 attributable to these fields include: (i) the residual natural gas volumes
 of the reservoirs; (ii) natural gas volumes from other Eni fields input into
 these reservoirs in subsequent periods. Proved reserves do not include volumes
 owned by or acquired from third parties. Gas withdrawn from storage is produced
 and thereby detracted from proved reserves when it is sold to third parties. <br>
 Numerous uncertainties
 are inherent in estimating quantities of proved reserves and in projecting
 future rates of production and timing of development expenditures. The accuracy
 of any reserve estimate is a function of the quality of available data and
 engineering and geological interpretation and judgement. Results of drilling,
 testing and production after the date of the estimate may require substantial
 upward and downward revision. In addition, changes in oil and natural gas
 prices could have an effect on the quantities of Eni's proved reserves because
 the estimates of reserves are based on prices and costs at the date when
 such estimates are made. Reserves estimates are also subject to revision as
 prices fluctuate due to the cost recovery feature under certain PSAs. <br>
 The following table presents
 yearly changes in estimated proved reserves, developed and undeveloped, of
 crude oil (including condensate and natural gas liquids) and natural gas
 for the years 2001, 2002 and 2003.</font></p>
<p align="justify"><font size="2" face="Times New Roman, Times, serif"><em>Crude oil (Including Condensates and
  Natural Gas Liquids) </em></font>
<table width="90%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td width="46%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million barrels) </FONT> </td>
  <td width="9%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy</STRONG> </FONT> </td>
  <td width="9%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Africa</STRONG> </FONT></td>
  <td width="9%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West Africa</STRONG> </FONT></td>
  <td width="9%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Sea</STRONG> </FONT></td>
  <td width="9%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest of World</STRONG> </FONT> </td>
  <td width="9%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Proved oil Reserves</STRONG> </FONT> </td>
  <td></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2000 <SUP>(1)</SUP></STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>296</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,039</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>934</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>455</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>698</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,422</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><EM>(1) Eni's share of
equity method investees' proved oil <BR>reserves as at December 31, 2000 (Lasmo
Plc)</EM> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Purchase of Minerals in Place </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">118 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">120 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">248 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">486 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of Previous Estimates </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">29 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">79 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">91 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">37 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">20 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">256 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Improved Recovery </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">11 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">16 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">33 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Extensions and Discoveries </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">9 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">21 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">24 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">70 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(25) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(84) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(81) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(74) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(50) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(314) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Sales of Minerals in Place </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5) </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2001</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>309</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,171</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>976</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>552</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>940</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,948</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Purchase of Minerals in Place </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">13 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">12 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">25 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of Previous Estimates </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(31) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">112 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(33) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">54 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Improved Recovery </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">14 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">15 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Extensions and Discoveries </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">11 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">10 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">14 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">18 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">104 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">157 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(30) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(92) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(81) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(77) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(54) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(334) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Sales of Minerals in Place </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(37) </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(12) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(33) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(82) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2002</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>255</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,072</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,022</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>498</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>936</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,783</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Purchase of Minerals in Place </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">86 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">86 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of Previous Estimates </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">21 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">51 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">59 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">52 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">153 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">336 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Improved Recovery </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">15 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">16 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">31 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Extensions and Discoveries </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">6 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">32 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">28 </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">214 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">280 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(30) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(90) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(87) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(86) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(64) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(357) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Sales of Minerals in Place </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(21) </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(21) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2003</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>252</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,080</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,038</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>529</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,239</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,138</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Proved Developed Oil Reserves</STRONG> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2000 <SUP>(1)</SUP> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">144 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">650 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">487 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">303 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">189 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,773 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2001 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">171 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">685 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">539 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">476 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">443 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,314 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2002 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">168 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">610 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">554 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">426 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">483 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,241 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2003 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">173 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">640 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">560 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">464 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">610 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,447 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><EM>(1) Eni's share of equity method investees' proved
developed<BR>oil reserves as at December 31, 2000 (Lasmo Plc)</EM> </FONT></td>
  <td valign="top"><FONT SIZE="1">&nbsp; </FONT></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td valign="top"></td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">56 </FONT></td>
 </tr>
</table>
<p><font face="Times New Roman, Times, serif"><em><font size="2">Natural
gas</font></em></font></p>
<table width="90%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td width="46%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(billion cubic feet) </FONT> </td>
  <td width="9%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy <SUP>(a)</SUP></STRONG> </FONT> </td>
  <td width="9%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Africa</STRONG> </FONT></td>
  <td width="9%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West Africa</STRONG> </FONT></td>
  <td width="9%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Sea</STRONG> </FONT></td>
  <td width="9%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest of World</STRONG> </FONT> </td>
  <td width="9%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Proved Natural Gas Reserves</STRONG> </FONT> </td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2000 <SUP>(1)</SUP></STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>6,125</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,152</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>922</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,418</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,155</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>14,772</STRONG> </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><I>(1) Eni's share of
equity method investees' proved natural gas <BR>reserves as at December 31, 2000
(Lasmo Plc)</I> </FONT> </td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">501 </FONT></td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Purchase of Minerals in Place </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">17 </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">501 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,093 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,611 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of Previous Estimates </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(37) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">539 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">12 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">148 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">833 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,495 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Extensions and Discoveries </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">66 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">18 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">202 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">291 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(531) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(183) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(27) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(175) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(177) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,093) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Sales </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4) </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2001</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,640</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,509</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>925</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,892</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,106</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>17,072</STRONG> </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Purchase of Minerals in Place </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">87 </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">87 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of Previous Estimates </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">21 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">257 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">115 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,238 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,639 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Extensions and Discoveries </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">105 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">9 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">636 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">74 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">223 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,047 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(456) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(212) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(36) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(201) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(228) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,133) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Sales </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(15) </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(68) </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(83) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2002</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,295</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,563</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,533</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,899</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,339</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>18,629</STRONG> </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Purchase of Minerals in Place </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">10 </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">425 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">443 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Revisions of Previous Estimates </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(768) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(123) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">172 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">139 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">325 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(255) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Extensions and Discoveries </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">84 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">242 </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">100 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">426 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Production </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(455) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(215) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(49) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(229) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(276) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,224) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Sales </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(11) </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(11) </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Reserves at December 31, 2003</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,166</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,467</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>1,656</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,223</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,496</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>18,008</STRONG> </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Proved Developed Natural Gas Reserves</STRONG> </FONT> </td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2000 <SUP>(1)</SUP> </FONT></td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,012 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,009 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">595 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">810 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">649 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">7,075 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2001 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,665 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,103 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">584 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,721 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,221 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,294 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2002 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,397 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,084 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">863 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,727 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,283 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">8,354 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Reserves at December 31, 2003 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,966 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">962 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">866 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,075 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,355 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">10,224 </FONT> </td>
 </tr>
 <tr valign="top">
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><EM>(1) Eni's share
of equity method investees' proved developed<BR>natural gas reserves as at
December 31, 2000 (Lasmo Plc)</EM> </FONT> </td>
  <td><FONT SIZE="1">&nbsp; </FONT></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td align="right" valign="bottom"><FONT FACE="Times New Roman, Times, serif" SIZE="1">329 </FONT></td>
 </tr>
</table>
<BR>
<table width="100%"  cellspacing="2" cellpadding="0">
 <tr>
  <td width="5%" valign="top"><font size="1" face="Times New Roman, Times, serif">(a)</font></td>
  <td width="95%"><div align="justify"><font size="1" face="Times New Roman, Times, serif">Including approximately 783, 728, 779 and
     747 billions of cubic feet of natural gas held in storage at December 31,
  2000, 2001, 2002 and 2003 respectively. </font></div></td>
 </tr>
</table>
<p align="justify"><font face="Times New Roman, Times, serif"><em><font size="2">Standardized
    measure of discounted future net cash flows <br>
</font></em><font size="2">Estimated
 future cash inflows represent the revenues that would be received from production
 and are determined by applying year-end prices of oil and gas to the estimated
 future production of proved reserves. Future price changes are considered
only to extent provided by contractual arrangements. Estimated future development
 and production costs are determined by estimating the expenditures to be
incurred in developing and producing the proved reserves at the end of the year.
Neither the effects of price and cost escalations nor expected future changes
in technology and operating practices have been considered.<br>
 The
 standardized measure is calculated as the excess of future cash inflows from
 proved reserves less future costs of producing and developing the reserves,
 future income taxes and a yearly 10% discount factor.<br>
 Future cash flows as
 of December 31, 2001, 2002 and 2003 include annual revenue payments from
 Eni's Gas &amp; Power segment and other transport and distribution
 gas companies which represent payments for modulation services to support
 demand delivery capability. Such capability is provided through utilization
 of gas withdrawn from producing fields and injected into depleted gas fields
 as storage.<br>
 Future production costs include the estimated expenditures related
 to the production of proved reserves plus any production taxes without consideration
 of future inflation. Future development costs include the estimated costs
 of drilling development wells and installation of production facilities,
 plus the net costs associated with dismantlement and abandonment of wells
 and facilities, under the assumption that year-end costs continue without
 considering future inflation. Future income taxes were calculated in accordance
 with the tax laws of the countries in which Eni operates.
    <br>
</font></font><font size="2" face="Times New Roman, Times, serif">The standardized
  measure of discounted future net cash flows, related to the preceding
proved oil and gas reserves, is calculated in accordance with the requirements
of Statement of Financial Accounting Standard No. 69. The standardized measure
  does not purport to reflect realizable values or fair market value of
Eni's proved reserves. An estimate of fair value would also take into account,
among other things, the expected recovery of reserves in excess of proved reserves,
  anticipated changes in future prices and costs and a discount factor
representative of the risks inherent in producing oil and gas.</font></p>
<table width="70%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Cash flows</STRONG> </FONT></td>
  <td align="center"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="center"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="center"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="center"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="center"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="center"><FONT SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td width="40%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
  <td width="10%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Italy</STRONG> </FONT> </td>
  <td width="10%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Africa</STRONG> </FONT></td>
  <td width="10%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>West Africa</STRONG> </FONT></td>
  <td width="10%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>North Sea</STRONG> </FONT></td>
  <td width="10%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Rest of World</STRONG> </FONT> </td>
  <td width="10%" align="center"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Total</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>At December 31, 2001</STRONG> </FONT> </td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
  <td></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future cash inflows </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">32,310 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">37,780 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">20,154 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">17,444 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">20,715 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">128,403 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future production costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,344) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10,941) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,779) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,466) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,073) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(31,603) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future development and abandonment costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,577) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,284) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,194) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,593) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,607) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(15,255) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Future net inflow before income tax</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>24,389</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>21,555</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>11,181</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>11,385</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>13,035</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>81,545</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future income tax </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(8,918) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(9,258) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,374) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,584) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,119) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(33,253) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Future net cash flows</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>15,471</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>12,297</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,807</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,801</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,916</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>48,292</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">10% discount factor </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,925) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,612) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,992) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,611) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,381) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(21,521) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Standardized measure of discounted future net cash flows</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,546</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,685</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2,815</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,190</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,535</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>26,771</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>At December 31, 2002</STRONG> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future cash inflows </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">32,809 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">41,797 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">29,242 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">19,645 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">26,500 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">149,993 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future production costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,367) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10,354) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,795) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,748) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,310) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(30,574) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future development and abandonment costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,755) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,880) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,706) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,523) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,459) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(13,323) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Future net inflow before income tax</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>25,687</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>27,563</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>19,741</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>13,374</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>19,731</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>106,096</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future income tax </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(8,885) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(12,164) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(11,320) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7,598) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,593) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(45,560) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Future net cash flows</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>16,802</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>15,399</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,421</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,776</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>14,138</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>60,536</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">10% discount factor </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7,471) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7,411) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,534) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,577) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,063) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(26,056) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Standardized measure of discounted future net cash flows</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>9,331</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,988</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,887</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>4,199</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,075</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>34,480</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>At December 31, 2003</STRONG> </FONT> </td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
  <td align="right" valign="top"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future cash inflows </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">24,641 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">36,484 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">25,074 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">19,590 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">28,505 </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">134,294 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future production costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,879) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7,868) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,847) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,458) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,763) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(27,815) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future development and abandonment costs </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,080) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,762) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,005) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,084) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,575) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(11,506) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Future net inflow before income tax</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>18,682</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>24,854</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>17,222</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>13,048</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>21,167</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>94,973</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Future income tax </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,113) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10,296) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(8,979) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7,614) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,073) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(39,075) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Future net cash flows</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>12,569</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>14,558</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>8,243</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,434</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>15,094</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>55,898</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">10% discount factor </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(5,056) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(6,646) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,130) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,872) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(7,930) </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(24,634) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Standardized measure of discounted future net cash flows</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,513</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,912</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>5,113</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>3,562</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,164</STRONG> </FONT> </td>
  <td align="right" valign="top"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>31,264</STRONG> </FONT> </td>
 </tr>
</table>
<p align="justify"><font face="Times New Roman, Times, serif"><em><font size="2">Changes in standardized measure of discounted future net
  cash flows<br>
</font></em><font size="2">The following table reflects the changes in standardized
measure of discounted future net cash flows for the years 2001, 2002 and 2003.</font></font></p>
<table width="70%" cellpadding="0" cellspacing="2" align=center>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Changes in standardized measure of discounted future net cash flows</STRONG> </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
  <td align="right"><FONT SIZE="1">&nbsp; </FONT></td>
 </tr>
 <tr>
  <td width="70%"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(million euro) </FONT> </td>
  <td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2001</STRONG> </FONT> </td>
  <td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2002</STRONG> </FONT> </td>
  <td width="10%" align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>2003</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Beginning of year</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>32,701</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>26,771</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>34,480</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">Increase (Decrease): </FONT> </td>
  <td align="right"></td>
  <td align="right"></td>
  <td align="right"></td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sales, net of production costs </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(9,760) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10,064) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(10,144) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- net changes in sales and transfer prices, net of production
costs </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(16,754) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">18,936 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(1,050) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- extensions, discoveries and improved recovery,
net of future production and development costs </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,027 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,810 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,855 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- changes in estimated future development and abandonment
costs </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,527) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(2,697) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(3,576) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- development costs incurred during the period
that reduced future development costs </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,342 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,287 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,864 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- revisions of quantity estimates </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">3,397 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,715 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">2,348 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- accretion of discount </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">5,628 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,279 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">5,585 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- net change in income taxes </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">5,618 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(9,318) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">105 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- purchase of reserves in-place </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">4,443 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">387 </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">1,488 </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- sale of reserves in-place </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(34) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(646) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(222) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1">- changes in production rates (timing) and other </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(310) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(980) </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1">(4,469) </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>Net increase (decrease)</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>(5,930)</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>7,709</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>(3,216)</STRONG> </FONT> </td>
 </tr>
 <tr>
  <td><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>End of year</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>26,771</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>34,480</STRONG> </FONT> </td>
  <td align="right"><FONT FACE="Times New Roman, Times, serif" SIZE="1"><STRONG>31,264</STRONG> </FONT> </td>
 </tr>
</table>


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