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<SEC-DOCUMENT>0001311435-05-000018.txt : 20050624
<SEC-HEADER>0001311435-05-000018.hdr.sgml : 20050624
<ACCEPTANCE-DATETIME>20050624101334
ACCESSION NUMBER:		0001311435-05-000018
CONFORMED SUBMISSION TYPE:	20-F
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20041231
FILED AS OF DATE:		20050624
DATE AS OF CHANGE:		20050624

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:		05913879

	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>sj0605en20f2.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>

<head>
<title>sj0605en20f2</title>
</head>

<body bgcolor="#FFFFFF" text="#000000">

<hr size="3" noshade color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td align="middle" valign="top" colspan="3"><p
        align="center"><font size="4" face="times new roman"><b>SECURITIES
        AND EXCHANGE COMMISSION</b> </font><br>
        <font size="2" face="times new roman">Washington, DC
        20549</font> </p>
        </td>
    </tr>
    <tr>
        <td align="middle" valign="top" width="30%">&nbsp;</td>
        <td align="middle" valign="top" width="40%"><hr size="1"
        noshade width="200" color="#000000">
        <p align="center"><font size="5"><b>FORM 20-F</b> </font></p>
        </td>
        <td align="middle" valign="top" width="30%">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td align="right" valign="top" width="13%"><font size="2"
        face="Times New Roman, Times, Serif">&nbsp; </font></td>
        <td valign="top" width="74%"><font size="2"
        face="Times New Roman, Times, Serif">(Mark One)</font></td>
        <td align="middle" valign="top" width="13%">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td align="right" width="15%"><font size="2"
        face="Times New Roman, Times, Serif"><img src="no.gif"
        width="23" height="23"> </font></td>
        <td align="middle" width="70%"><p align="center"><font
        size="2" face="Times New Roman, Times, Serif">REGISTRATION
        STATEMENT PURSUANT TO SECTION 12(b) or (g) <br>
        OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>
        </td>
        <td align="middle" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td align="right">&nbsp;</td>
        <td align="middle"><p align="center"><font size="2"
        face="Times New Roman, Times, Serif">OR</font></p>
        </td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td align="right"><font size="2"
        face="Times New Roman, Times, Serif"><b><img src="si.gif"
        width="23" height="23"> </b></font></td>
        <td align="middle"><p align="center"><font size="2"
        face="Times New Roman, Times, Serif"><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, 200</b><strong>4</strong></font></p>
        </td>
        <td><font size="2" face="Times New Roman, Times, Serif"><b>&nbsp;</b>
        </font></td>
    </tr>
    <tr>
        <td align="right">&nbsp;</td>
        <td align="middle"><p align="center"><font size="2"
        face="Times New Roman, Times, Serif">OR</font></p>
        </td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td align="right"><img src="no.gif" width="23"
        height="23"></td>
        <td align="middle"><p align="center"><font size="2"
        face="Times New Roman, Times, Serif">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></p>
        </td>
        <td>&nbsp;</td>
    </tr>
</table>

<p align="center"><font size="6" face="times new roman"><b>Eni
SpA</b> </font><br>
<font size="1" face="times new roman"><i>(Exact Name of
Registrant as Specified in Its Charter)</i> </font></p>

<p align="center"><font size="3" face="times new roman"><b>Republic
of Italy</b> </font><br>
<font size="1" face="times new roman"><i>(Jurisdiction of
Incorporation of Organization)</i> </font></p>

<p align="center"><font size="3" face="times new roman"><b>Piazzale
Enrico Mattei 1, 00144 Rome, Italy</b> </font><br>
<font size="1" face="times new roman"><i>(Address of principal
executive offices)</i> </font></p>

<hr size="1" noshade width="20%" color="#000000">

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

<p align="center"><font size="2" face="times new roman">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 size="2" face="times new roman">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">

<p align="center"><font size="2" face="times new roman">Securities
registered or to be registered pursuant to Section 12(g) of the
Act:</font> <br>
<br>
<font size="2" face="times new roman"><b>None.</b></font> </p>

<hr size="1" noshade width="20%" color="#000000">

<p align="center"><font size="2" face="times new roman">Securities
for which there is a reporting obligation pursuant to Section
15(d) of the Act:</font> <br>
<br>
<font size="2" face="times new roman"><b>None.</b></font> </p>

<hr size="1" noshade width="20%" color="#000000">

<p align="center"><font size="2" face="times new roman">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>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="50%"><font size="2"
        face="Times New Roman, Times, Serif"><b>Ordinary shares
        of euro 1 each</b> </font></td>
        <td align="right" valign="bottom" width="50%"><font
        size="2"><b>4,004,424,476</b></font></td>
    </tr>
</table>

<p align="center"><font size="2" face="times new roman">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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="30%">
    <tr>
        <td width="20%"><p align="center"><font size="2"
        face="times new roman">Yes&nbsp;</font></p>
        </td>
        <td width="20%"><p align="center"><img src="si.gif"
        width="18" height="18"></p>
        </td>
        <td width="20%">&nbsp;</td>
        <td width="20%"><p align="center"><font size="2"
        face="times new roman">&nbsp;No&nbsp;</font></p>
        </td>
        <td width="20%"><p align="center"><img src="no.gif"
        width="18" height="18"></p>
        </td>
    </tr>
</table>
</center></div>

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

<table border="0" cellpadding="0" cellspacing="0" width="30%">
    <tr>
        <td width="20%"><p align="center"><font size="2"
        face="times new roman">Item 17</font></p>
        </td>
        <td width="20%"><p align="center"><img src="no.gif"
        width="18" height="18"></p>
        </td>
        <td width="20%">&nbsp;</td>
        <td width="20%"><p align="center"><font size="2"
        face="times new roman">&nbsp;Item 18</font></p>
        </td>
        <td width="20%"><p align="center"><img src="si.gif"
        width="18" height="18"></p>
        </td>
    </tr>
</table>
</center></div>

<hr size="3" noshade color="#000000">

<h5 align="center" style="page-break-before:always"><font
size="3"><b>TABLE OF CONTENTS</b></font><a name="toc"></a></h5>

<p><a href="#CDT">Certain Defined Terms</a></p>

<p><a href="#POFOI">Presentation of Financial and Other
Information</a></p>

<p><a href="#SRCP">Statements Regarding Competitive Position</a></p>

<p><a href="#GLOSSARY">Glossary</a></p>

<p><a href="#CONVERSION">Conversion Table</a></p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="8%"><b>PART I</b></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 1-3">Item 1.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">IDENTITY OF DIRECTORS,
        SENIOR MANAGEMENT AND ADVISORS<sup> (*)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 1-3">Item 2.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">OFFER STATISTICS AND
        EXPECTED TIMETABLE<sup> (*)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 1-3">Item 3.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">KEY INFORMATION</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 1-3">Selected
        Financial Information</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#SOI">Selected
        Operating Information</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Exchage Rate">Exchange
        Rates</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Risk Factors">Risk
        Factors</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 4">Item 4.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">INFORMATION ON THE COMPANY</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 4">History
        and Development of the Company</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Business Overview">Business
        Overview</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Business Overview">Exploration
        &amp; Production</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#G&amp;P">Gas &amp;
        Power</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#R&amp;M">Refining
        &amp; Marketing</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Petrochemicals">Petrochemicals</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#OSC&amp;E">Oilfield
        Services Construction and Engineering</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Other Act">Other
        Activities</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#R&amp;D">Research
        and Development</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Insurance">Insurance</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#EnvironMat">Environmental
        Matters</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#RegEniBiz">Regulation
        of Eni's Businesses</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a
        href="#Property plant &amp; eq">Property, Plant and
        Equipment</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Org Struct">Organizational
        Structure</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 5">Item 5.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">OPERATING AND FINANCIAL
        REVIEW AND PROSPECTS</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 5">Executive
        Summary</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Critical Acc">Critical
        Accounting Estimates</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Result of Op">Results
        of Operations</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Liquidity and CR">Liquidity
        and Capital Resources</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Financial cond">Financial
        Condition</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Recent Dev">Recent
        Developments</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Man Ex of Op">Management
        Expectations of Operations</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Summary of dif">Summary
        of Significant Differences Between Italian GAAP and U.S.
        GAAP</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 6">Item 6.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">DIRECTORS, SENIOR MANAGEMENT
        AND EMPLOYEES</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 6">Directors
        and Senior Management</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Compensation">Compensation</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Board practice">Board
        Practices</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Employees">Employees</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Share owner">Share
        Ownership</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 7">Item 7.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">MAJOR SHAREHOLDERS AND
        RELATED PARTY TRANSACTIONS</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 7">Major
        Shareholders</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Related party">Related
        Party Transactions</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 8">Item 8.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">FINANCIAL INFORMATION</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 8">Consolidated
        Statements and Other Financial Information</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a
        href="#Significant changes">Significant Changes</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 9">Item 9.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">THE OFFER AND THE LISTING</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 9">Offer and
        Listing Details</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Markets">Markets</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 10">Item 10.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">ADDITIONAL INFORMATION</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 10">Memorandum
        and Articles of Association</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a
        href="#Material Contracts">Material Contracts</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Exchange controls">Exchange
        Controls</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Taxation">Taxation</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Docs on Display">Documents
        on Display</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 11">Item 11.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">QUALITATIVE AND QUANTITATIVE
        DISCLOSURES ABOUT MARKET RISK</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 12">Item 12.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">DESCRIPTION OF SECURITIES
        OTHER THAN EQUITY SECURITIES</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><b>PART II</b></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 13-15">Item
        13.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">DEFAULTS, DIVIDEND
        ARREARAGES AND DELINQUENCIES</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 13-15">Item
        14.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">MATERIAL MODIFICATIONS TO
        THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 13-15">Item
        15.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">CONTROLS AND PROCEDURES</td>
    </tr>
    <tr>
        <td valign="top" width="8%">Item 16.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">16 A</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 16A">Board of
        Statutory Auditors Financial Expert</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">16 B</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 16B">Code of
        Ethics</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">16 C</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 16C">Principal
        Accountant Fees and Services</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">16 D</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 16D">Exemptions
        from the Listing Standards for Audit Committees</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">16 E</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%"><a href="#Item 16E">Purchases
        of Equity Securities by the Issuer and Affiliated
        Purchasers</a></td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><b>PART III</b></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 17-18">Item
        17.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">FINANCIAL STATEMENTS <sup>(*)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 17-18">Item
        18.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">FINANCIAL STATEMENTS <sup>(**)</sup></td>
    </tr>
    <tr>
        <td valign="top" width="8%"><a href="#Item 19">Item 19.</a></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="90%">EXHIBITS</td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(*)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Omitted
        pursuant to General Instructions for Form 20-F.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(**)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">The
        Registrant has responded to Item 18 in lieu of responding
        to Item 17.A</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p><i>Certain disclosures contained herein including, without
limitation, information appearing in &quot;Item 4 &#150;
Information on the Company&quot;, and in particular &quot;Item 4
&#150; Exploration &amp; Production&quot;, &quot;Item 5 &#150;
Operating and Financial Review and Prospects&quot; and &quot;Item
11 &#150; Qualitative and Quantitative Disclosures about Market
Risk&quot; 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 &quot;SEC&quot;). 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 &quot;Risk Factors&quot; 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.</i></p>

<p>&nbsp;</p>

<p align="center">&nbsp; </p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="CDT">Table of Contents</a></h5>

<p align="center"><font size="3"><b>CERTAIN DEFINED TERMS</b></font></p>

<p>In this Form 20-F, the term &quot;Eni&quot; refers to Eni SpA
and its consolidated subsidiaries and, unless the context
otherwise requires, their respective predecessor companies. All
references to &quot;Italy&quot; or the &quot;State&quot; are
references to the Republic of Italy, all references to the
&quot;Government&quot; are references to the government of the
Republic of Italy. For definitions of certain oil and gas terms
used herein and certain conversions, see &quot;Certain Oil and
Gas Terms&quot; and &quot;Conversion Table&quot;.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="POFOI">Table of Contents</a></h5>

<p align="center"><font size="3"><b>PRESENTATION OF FINANCIAL AND
OTHER INFORMATION</b></font></p>

<p>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 Consiglio Nazionale dei Dottori
Commercialisti e dei Ragionieri or, in the absence thereof and if
applicable, the International Accounting Standards Board
(collectively, &quot;Italian GAAP&quot;). For further details see
Note 2 to the Consolidated Financial Statements. As described in
Note 27 to the Consolidated Financial Statements, Italian GAAP
differs in certain significant respects from accounting
principles generally accepted in the United States (&quot;U.S.
GAAP&quot;). Unless otherwise indicated, any reference herein to
&quot;Consolidated Financial Statements&quot; is to the
Consolidated Financial Statements of Eni (including the Notes
thereto) included herein.</p>

<p>Unless otherwise specified or the context otherwise requires,
references herein to &quot;dollars&quot;, &quot;$&quot;, &quot;US
dollars&quot; and &quot;US $&quot; are to the currency of the
United States and references to &quot;euro&quot; and
&quot;&#128;&quot; are to the currency of the European Monetary
Union.</p>

<p align="center">&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="SRCP">Table of Contents</a></h5>

<p align="center"><font size="3"><b>STATEMENTS REGARDING
COMPETITIVE POSITION</b></font></p>

<p>Statements made in &quot;Item 4 &#150; Information on the
Company&quot;, 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.</p>

<p align="center">&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="GLOSSARY">Table of Contents</a></h5>

<p align="center"><font size="3"><strong><b>GLOSSARY</b></strong></font></p>

<p>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.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="25%"><p align="center"><b><i>Financial
        Terms</i></b></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Leverage</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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
        management&#146;s view of the usefulness of this measure
        and its reconciliation with the most directly comparable
        GAAP measure, see &quot;Item 5 &#150; Financial
        condition&quot;.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Net borrowings</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Eni evaluates its financial
        condition by reference to &quot;net borrowings&quot;,
        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
        management&#146;s view of the usefulness of this measure
        and its reconciliation with the most directly comparable
        GAAP measure, see &quot;Item 5 &#150; Financial
        condition&quot;.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><p align="center"><b><i>Business
        terms</i></b></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Associated gas</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Natural gas, occurring in
        the form of a gas cap, overlying an oil zone, contained
        in the reservoir&#146;s crude oil gas.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Barrel/BBL</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Volume unit corresponding to
        159 liters. A barrel of oil corresponds to about 0.137
        metric tons.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>BOE</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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 &quot;Conversion Table&quot;).</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Concession contracts</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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
        exploration, development and production activities and
        for this reason it acquires a right to hydrocarbons
        extracted against the payment of royalties on production
        and taxes on oil revenues to the state.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Condensates</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">These are light hydrocarbons
        produced along with gas that condense to a liquid state
        at surface temperature and pressure.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Conversion capacity</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Maximum amount of heavy
        fractions that can be processed in certain dedicated
        facilities of a refinery to obtain finished products.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Deep waters</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Waters deeper than 200
        meters.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Development</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Drilling and other
        post-exploration activities aimed at the production of
        oil and gas.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>EPC</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Engineering, Procurement and
        Construction.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>EPIC</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Engineering, Procurement,
        Installation and Construction.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Exploration</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Oil and natural gas
        exploration that includes land surveys, geological and
        geophysical studies, seismic data gathering and analysis
        and well drilling.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Infilling wells</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>FPSO</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Floating Production Storage
        and Offloading System.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>LNG</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Liquefied Natural Gas
        obtained through the cooling of natural gas to minus 160
        &#176;C at normal pressure. The gas is liquefied to allow
        transportation from the place of extraction to the sites
        at which it is transformed back into its natural gaseous
        state and consumed. One tonne of LNG corresponds to 1,400
        cubic meters of gas.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>LPG</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Liquefied Petroleum Gas, a
        mix of light petroleum fractions, gaseous at normal
        pressure and easily liquefied at room temperature through
        limited compression.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Margin</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Mineral Storage</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Modulation Storage</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">According to Legislative
        Decree No. 164/2000, these are volumes required for
        meeting hourly, daily and seasonal swings in demand.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Natural gas liquids (NGL)</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Liquid or liquefied
        hydrocarbons recovered from natural gas through
        separation equipment or natural gas treatment plants.
        Propane, normal-butane and isobutane, isopentane and
        pentane plus, that were previously defined as natural
        gasoline, are natural gas liquids.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Network Code</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">A code containing norms and
        regulations for access to, management and operation of
        natural gas pipelines.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Over/Under lifting</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Agreements stipulated
        between partners which regulate the right of each to its
        share in the production for a set period of time. Amounts
        lifted by a partner different from the agreed amounts
        determine temporary Over/Under lifting situations.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Primary balanced refining
        capacity</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Maximum amount of feedstock
        that can be processed in a refinery to obtain finished
        products measured in BBL/d.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Production Sharing
        Agreement (&quot;PSA&quot;)</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Contract in use in African,
        Middle Eastern, Far Eastern and Latin American countries,
        regulating relationships between states and oil companies
        with regard 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: &quot;cost oil&quot; is used to recover
        costs borne by the contractor and &quot;profit oil&quot;
        is divided between the contractor and the national
        company according to variable schemes and represents the
        profit deriving from exploration and production. Further
        terms and conditions of these contracts may vary from
        country to country.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Proved reserves</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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 existing 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.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Reserve life index</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">Ratio between the amount of
        reserves at the end of the year and total production for
        the year.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Ship-or-pay</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Strategic Storage</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Take-or-pay</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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 gas set in the contract
        whether or not the gas is collected by the purchaser. The
        purchaser has the option of collecting the gas paid for
        and not delivered at a price equal to the residual
        fraction of the price set in the contract in subsequent
        contract years.</td>
    </tr>
    <tr>
        <td valign="top" width="25%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="25%"><i>Upstream/Downstream</i></td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="70%">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.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p align="center" style="page-break-before:always"><font size="3"><b>ABBREVIATIONS</b></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="30%">
    <tr>
        <td valign="top" width="20%"><p align="right">mmCF</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">million cubic feet </td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">BCF</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">billion cubic feet</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">BOE</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">barrel of oil equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">KBOE</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">thousand barrel of oil
        equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">mmBOE</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">million barrel of oil
        equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">BBOE</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">billion barrel of oil
        equivalent</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">BBL</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">barrels</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">KBBL</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">thousand barrels </td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">mmBBL</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">million barrels</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">BBBL</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">billion barrels</td>
    </tr>
    <tr>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="70%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right">/d</p>
        </td>
        <td valign="top" width="10%"><p align="center">=</p>
        </td>
        <td valign="top" width="70%">per day</td>
    </tr>
</table>

<p align="center">&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="CONVERSION">Table of Contents</a></h5>

<p align="center"><font size="3"><b>CONVERSION TABLE</b></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="top" width="31%">1 acre</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">0.405 hectares</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 barrel</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">42 U.S. gallons</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 BOE</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">1 barrel of crude oil</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">5,742 cubic feet of natural
        gas<font size="2"> <sup>(1)</sup></font></td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 barrel of crude oil per
        day</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">approximately 50 tonnes of
        crude oil per year</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 cubic meter of natural gas</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">35.3147 cubic feet of
        natural gas</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 cubic meter of natural gas</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">approximately 0.00615
        barrels of oil equivalent<font size="2"> <sup>(1)</sup></font></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 kilometer</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">approximately 0.62 miles</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 short ton</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">0.907 tonnes</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">2,000 pounds</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 long ton</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">1.016 tonnes</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">2,240 pounds</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 tonne</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">1 metric ton</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">1,000 kilograms</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">approximately 2,205 pounds</td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="31%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%">1 tonne of crude oil</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">1 metric ton of crude oil</td>
        <td valign="top" width="3%"><p align="center">=</p>
        </td>
        <td valign="top" width="31%">approximately 7.3 barrels of
        crude oil (assuming an API gravity of 34 degrees)</td>
    </tr>
</table>
</center></div>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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 has not affected the amount of proved reserves
        recorded at December 31, 2003 and has had a negligible
        impact on production expressed in BOE in 2004.</font></td>
    </tr>
</table>

<p align="center">&nbsp;</p>

<p align="center">&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 1-3">Table of Contents</a></h5>

<p align="center"><font size="4"><b>PART I</b></font></p>

<p><font size="4"><b>Item 1. IDENTITY OF DIRECTORS, SENIOR
MANAGEMENT AND ADVISORS</b></font></p>

<p>NOT APPLICABLE</p>

<p><font size="4"><b>Item 2. OFFER STATISTICS AND EXPECTED
TIMETABLE</b></font></p>

<p>NOT APPLICABLE</p>

<p><font size="4"><b>Item 3. KEY INFORMATION</b></font></p>

<p><font size="3"><b>Selected Financial Information</b></font></p>

<p>The following tables show Eni selected historical financial
data as of and for the years ended December 31, 2000 through
2004. 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 U.S. GAAP. For further information on
the differences between Italian GAAP and U.S. GAAP as they relate
to Eni, please refer to Note 27 to Eni Consolidated Financial
Statements.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>(million euro except data per share and per
        ADS)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>CONSOLIDATED INCOME STATEMENT DATA</b></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Amounts in accordance with Italian GAAP:</b></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations<sup> </sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47,938 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">48,925 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47,922 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">51,487</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58,382</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Operating
        income<sup> (1)</sup>:</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exploration &amp;
        Production </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,603 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,984 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,175 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,746</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,017</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gas
        &amp; Power<sup> (2)</sup></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,178</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,672</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,244</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,627</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,463</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Refining &amp;
        Marketing</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">986</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">985</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">321</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">583</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">965 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Petrochemicals</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(332</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(126</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(176</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">271</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Oilfield Services
        Construction and Engineering</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">144</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">255</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">298</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">311</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">260</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other
        activities</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(214</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(293</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(244</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate and
        financial companies</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(143</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(168</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(196</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(281</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(269</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Operating
        income</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10,772</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10,396</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8,502</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">9,517</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">12,463</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Income before extraordinary items and income
        taxes<sup> (3)</sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,869</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,921</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,378</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,346</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12,597</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Net income<sup>
        (2)</sup></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5,771</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">7,751</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4,593</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5,585</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">7,274</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Data per ordinary share</b> (euro)<sup> (4)</sup>:</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Net
        income: basic and diluted</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.44</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.98</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.20</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.93</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Data per ADS</b> ($)<sup>(4) (5)</sup>:</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Net
        income: basic and diluted</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">6.79</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8.82</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">6.29</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">9.31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">13.05</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Amounts in accordance with U.S. GAAP </b>(euro):</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Net sales
        from operations</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">45,488</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">45,848</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">43,632</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">48,018</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">54,698</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Operating income<sup> (6)</sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,819</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,853</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,861</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,215</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11,739</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#FFFFFF"><font
        size="2">Income before cumulative effect of change in
        accounting principle and income taxes</font></td>
        <td valign="bottom" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">10,067</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">10,330</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">8,350</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">9,274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">12,324</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net income before cumulative effect of change in
        accounting principle </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,098</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Effect of
        adoption of SFAS No. 143</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">198</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net income</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,758</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,317</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,292</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,401</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2"><b>Data
        per ordinary share</b> (euro)<sup>(4)</sup>:</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net income: basic and diluted</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.44</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.62</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.38</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2"><b>Data
        per ADS</b> ($)<sup> (4) (5)</sup>:</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net income: basic and diluted</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.77</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.25</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11.49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<p style="page-break-before:always">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>As of December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>(million euro except number of shares and
        dividend information)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>CONSOLIDATED BALANCE SHEET DATA</b></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Amounts in accordance with Italian GAAP:</b></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Total assets</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">56,363</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">62,736</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">65,808</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">67,336</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">69,112</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Short-term
        and long-term debt</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11,044</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,819</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15,420</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">16,254</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,725</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Capital stock issued</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,133</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,001</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,002</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,003</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,004</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2"><b>Amounts
        in accordance with U.S. GAAP:</b></font></td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Total assets</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">57,257</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">64,976</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">66,122</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">71,995</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">72,354</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Short-term
        and long-term debt</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,810</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,379</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15,320</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">16,144</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,697</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Capital stock issued</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,133</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,001</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,002</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,003</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,004</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2"><b>Other
        Financial Information in accordance with Italian GAAP</b></font></td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditure</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,431</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,577</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,048</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,802</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,503</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Investments
        (including net borrowings of acquired companies)<sup> (7)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,384</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,664</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,366</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,255</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">316</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Weighted average number of ordinary shares
        outstanding (shares million)</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,994</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,912</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,827</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,778</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,772</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Dividend
        per share (euro)</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.424</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.900</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Dividend per ADS ($)</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.81</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.29</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.09</font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In 2003,
        Eni&#146;s activities have been grouped differently:</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%"><font size="1">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%"><font size="1">Syndial
        (former EniChem) was included in the &quot;Other
        activities&quot; segment, which includes all Eni
        companies not included in specific segments (such as,
        among others, EniData, Sieco, Tecnomare, EniTecnologie,
        Eni Corporate University and AGI); </font></td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%"><font size="1">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%"><font size="1">the new
        &quot;Corporate and financial companies&quot; segment was
        created, which includes Eni Corporate, Sofid and the
        financial companies formerly included in the &quot;Other
        activities&quot; segment.</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In addition,
        following its merger into Eni in 2004, EniData SpA, which
        managed Eni&#146;s IT activities, and was formerly
        included in &quot;Other activities&quot;, is now included
        in &quot;Corporate and financial companies&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">.</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Data for 2002
        and 2003 have been reclassified accordingly for
        comparability</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">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 the 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
        segment 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 through December 31, 2001, have been
        aggregated in the new Gas &amp; Power segment.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(3)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(4)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Euro per
        Share or dollars per American Depositary Share (ADS), as
        the case may be. The 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
        1,936.27 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. The dilutive effect of potential
        ordinary shares, in terms of the number of ordinary
        shares underlying outstanding stock grants and stock
        options on earnings per share or ADS is immaterial.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(5)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">The financial
        statements are stated in euro. The translations of
        certain euro amounts into US 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 2000 to 2003,
        were translated at the Noon Buying Rate of December 31
        for each year presented (US dollar 0.9388, 0.8901,
        1.0485, 1.2597 and 1.3538 = euro 1.00 as of December 31,
        2000, 2001, 2002, 2003 and 2004, respectively). Dividend
        per ADS for the years 2000 through 2004 has been
        translated into US dollars using for each year presented
        the Noon Buying Rate of the payment date. On June 17,
        2005, the Noon Buying Rate was US dollars 1.2240 = euro
        1.00.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(6)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(7)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">This item
        refers mainly to the acquisition cost of net equity of
        investees and also includes the net borrowings of
        companies acquired. In 2003, it also includes the outlay
        for the tender offer for Italgas shares (euro 2,569
        million). For a discussion of net borrowings, see
        &quot;Item 5 &#150; Financial Conditions&quot;.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="SOI">Table of Contents</a></h5>

<p><b>Selected Operating Information</b></p>

<p>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 as of and for the years ended
December 31, 2000, 2001, 2002, 2003 and 2004. Such estimates of
proved reserves have been prepared in accordance with Statement
of Financial Accounting Standards No. 69 (&quot;SFAS 69&quot;).
See the unaudited supplemental oil and gas information in Note 29
to the Consolidated Financial Statements.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Proved reserves at period end of oil (mmBBL)</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,422</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,948</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,783</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,138</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,008</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Proved
        reserves at period end of natural gas (BCF)</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">14,772</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">17,072</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">18,629</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">18,008</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">18,435</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Proved reserves of hydrocarbons in mmBOE at
        period end<sup> (1)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,008</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,929</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,030</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,218</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Reserve
        replacement ratio<sup> (2)</sup> (three-year average)</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">173</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">226</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">202</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">179</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">117</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Reserve life index<sup> (3)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.0</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Average
        daily production of oil (KBBL/d)</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">748</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">857</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">921</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">981</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,034</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Average daily production of natural gas
        available for sale (mmCF/d)<sup>(4)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,493</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,827</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,015</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,174</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,171</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Average
        daily production of hydrocarbons available for sale
        (KBOE/d)<sup>(4)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,187</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,353</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,449</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,536</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,586</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Oil and gas production costs per BOE<sup> (5)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.85</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.92</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Profit per
        barrel of oil equivalent<sup> (6)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.86</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.08</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.95</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8.87</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Sales of natural gas to third parties<sup> (7)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">62.63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">63.72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">64.12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">69.49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">73.43</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Natural
        gas consumed by Eni<sup> (7)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.02</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.90</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3.70</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Sales of natural gas of affiliates and relevant
        companies (Eni&#146;s share)<sup> (7) </sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.87</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.38</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.94</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.32</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Total
        sales and own consumption of natural gas<sup> (7)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">65.50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">67.10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">68.54</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">78.33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">84.45</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Transport of natural gas for third parties in
        Italy<sup> (7)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9.45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11.41</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19.11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">24.63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28.26</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Length of
        natural gas transport network in Italy at period end<sup>
        (8)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">29.1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">29.6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">29.8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">30.1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">30.2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Electricity production sold<sup> (9)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,77</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,99</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5.55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.85</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Refined
        products production<sup> (10)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">38.89</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">37.78</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">35.55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">33.52</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">35.75</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Balanced capacity of wholly-owned refineries<sup>
        (11)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">664</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">664</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">504</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">504</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">504</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Capacity
        utilization of wholly-owned refineries<sup> (12)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">99</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">97</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">99</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">100</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">100</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Number of service stations at period end (in
        Italy and outside Italy)</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12,085</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11,707</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,762</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,647</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,140</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Average
        throughput per service station (in Italy and outside
        Italy)<sup>(13)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,555</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,621</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,674</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,771</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,967</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Petrochemicals production<sup> (14)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8.53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.12</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Oilfield
        Services Construction and Engineering order backlog at
        period end<sup> (15)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,638</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,937</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,065</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">9,405</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8,521</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Employees at period end (units)</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">69,969</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">70,948</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">80,655</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">76,521</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">71,497</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        approximately 783, 728, 779, 747 and 737 BCF of natural
        gas held in storage in Italy at December 31, 2000, 2001,
        2002, 2003 and 2004, respectively. See &quot;Item 4
        &#150; Information on the Company &#150; Exploration and
        Production &#150; Storage&quot;. </font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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, less sales of minerals in place; 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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(3)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(4)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Natural gas
        production volumes exclude gas consumed in operations
        (94, 132, 151 and 220 mmCF/d in 2001, 2002, 2003 and
        2004, respectively).</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(5)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Consists of
        production costs (costs incurred to operate and maintain
        wells and field equipment including also royalties)
        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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(6)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(7)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        billions of cubic meters.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(8)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        thousands of kilometers.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(9)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        gigawatthour.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(10)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        millions of tonnes.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(11)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        KBBL/d.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(12)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        production as a percentage of capacity taking into
        account scheduled plant shutdowns.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(13)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        thousands of liters per day.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(14)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Expressed in
        millions of tonnes. For year 2004, 2003 and 2002 data see
        Note 1 on the preceding page.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(15)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">The sum of
        the order backlog of Saipem SpA and Snamprogetti SpA,
        expressed in millions of euro.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Exchage Rate">Table of Contents</a></h5>

<p><b>Exchange Rates</b></p>

<p>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 official fixing rate of
the lira versus the euro is 1,936.27 lire per euro.</p>

<p>The following table sets forth, for the periods indicated,
certain information regarding the Noon Buying Rate in US dollars
per euro, rounded to the second decimal (Source: The Federal
Reserve Board).</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>High</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Low</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Average</b><sup>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>At Period End</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="69%">&nbsp;</td>
        <td width="31%"><p align="center"><font size="1"><b>US
        dollars per euro</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE"><font
        size="2">Year ended December 31,</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="69%"><font size="2">2000</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.83</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.94</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE"><font
        size="2">2001</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.84</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.89</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%"><font size="2">2002</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.05</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.86</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.95</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.05</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE"><font
        size="2">2003</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.26</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.04</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.26</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%"><font size="2">2004</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.35</font></p>
        </td>
    </tr>
    <tr>
        <td bgcolor="#FFFFFF">&nbsp;</td>
        <td bgcolor="#FFFFFF"><hr size="1" noshade
        color="#000000">
        </td>
        <td bgcolor="#FFFFFF">&nbsp;</td>
        <td bgcolor="#FFFFFF"><hr size="1" noshade
        color="#000000">
        </td>
        <td bgcolor="#FFFFFF">&nbsp;</td>
        <td bgcolor="#FFFFFF"><hr size="1" noshade
        color="#000000">
        </td>
        <td bgcolor="#FFFFFF">&nbsp;</td>
        <td bgcolor="#FFFFFF"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Average of
        the Noon Buying Rates for the last business day of each
        month in the period.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>High</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Low</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>At Period End</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>US
        dollars per euro</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">December 2004</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.3625</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.3224</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.3538</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">January
        2005</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.3476</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.2954</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.3049</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">February 2005</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.3274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.2773</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.3274</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">March 2005</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.3465</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.2877</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.2969</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">April 2005</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.3093</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.2819</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.2919</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">May 2005</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.2936</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.2349</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.2349</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">June 2005 (through June 17, 2005)</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.2320</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.2035</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.2240</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>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 2004 has been paid by
Eni SpA in euro as of June 23, 2005 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 17, 2005 was US dollars 1.2240 = euro 1.00.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Risk Factors">Table of Contents</a></h5>

<p><font size="3"><b>Risk Factors</b></font></p>

<blockquote>
    <p><b><i>Competition</i></b></p>
</blockquote>

<p>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, which was completed in
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
market. 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).</p>

<blockquote>
    <p><br>
    <b><i>Risks associated with the exploration and production of
    oil and natural gas</i></b></p>
</blockquote>

<p>The exploration and 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. 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.</p>

<blockquote>
    <p><i>Exploratory drilling efforts may not be successful</i></p>
</blockquote>

<p>Drilling for oil and gas involves numerous risks including the
risk of dry holes or failure to find commercial quantities of
hydrocarbons. The costs of drilling, completing and operating
wells are often uncertain, and drilling operations may be
unsuccessful as a result of a variety of factors, including,
among others, unexpected drilling conditions, pressure or
irregularities in formations, equipment failures or fires,
blow-outs and various forms of accidents, marine risks such as
collisions and other adverse weather conditions and shortages or
delays in the delivery of equipment. </p>

<p>Failure in the activity of exploration of oil and natural gas
could have an adverse impact on Eni&#146;s future results of
operations and financial condition. Because of the percentage of
Eni&#146;s capital plans devoted to higher risk exploratory
projects, it is likely that Eni will continue to experience
significant exploration and dry hole expenses. In particular Eni
plans to explore for oil and gas offshore, often in deep water or
at deep drilling depths, where operations are more difficult and
costly than on land or at shallower depths and in shallower
waters. Deepwater operations generally require a significant
amount of time between a discovery and the time that Eni can
produce and market the oil or gas, increasing both the
operational and financial risks associated with these activities.
</p>

<p>In addition, failure in finding additional commercial reserves
could dampen future production of oil and natural gas which is
highly dependent on the rate of success of exploratory activity.</p>

<blockquote>
    <p><i>Development projects bear significant operational risks
    which may adversely affect actual returns on such projects</i></p>
</blockquote>

<p>Eni is involved in numerous development projects for the
production of hydrocarbon reserves, principally offshore. Key
factors that may affect the timing and outcome of those projects
include, among others, project approvals by joint venture
partners, timely issuance of permits and licenses by governmental
agencies; manufacturing and delivery schedules of critical
equipment, such as offshore platforms and floating production
units, mechanical and technical difficulties, risks associated
with the use of new technologies, and commercial arrangements for
pipelines and related equipment to transport and market
hydrocarbons. Furthermore, deepwater and other hostile
environments, where the majority of Eni&#146;s planned and
existing development projects are located, can exacerbate these
problems. Delays and differences between estimated and actual
timing of critical events may adversely affect the completion of
and start-up of production from such projects and, consequently,
the actual returns on such projects. </p>

<blockquote>
    <p><i>Changes in crude oil and natural gas prices may
    adversely affect Eni&#146;s results of operations</i></p>
</blockquote>

<p>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 natural gas prices are typically tied to the prices of
certain crudes and refined petroleum products. Lower crude oil
prices have an adverse impact on Eni's results of operations.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Uncertainties in Estimates of Oil and Natural Gas
    Reserves </i></b></p>
</blockquote>

<p>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:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the quality of available
        geological, technical and economic data and their
        interpretation and judgement;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">whether the prevailing tax
        rules, other government regulations and contractual
        conditions will remain the same as on the date estimates
        are made;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">results of drilling, testing
        and production after the date of the estimates may
        require substantial upward or downward revisions;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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 (PSAs); and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the production performance
        of Eni reservoirs.</td>
    </tr>
</table>

<p>Many of these factors, assumptions and variables involved in
estimating proved reserves are beyond Eni's 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 proved
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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Political Considerations</i></b></p>
</blockquote>

<p>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, 2004, approximately 73%
of Eni's proved hydrocarbons reserves were located in such
countries. See &quot;Item 4 &#150; Exploration &amp; Production
&#150; Oil and Natural Gas Reserves&quot;. Similarly, a
substantial portion of Eni's natural gas supply comes from
countries outside the EU and North America. In 2004,
approximately 38% of Eni's domestic supply of natural gas came
from such countries. See &quot;Item 4 &#150; Gas &amp; Power
&#150; Natural Gas Supplies&quot;. Adverse political and economic
developments in any such producing country may affect Eni&#146;s
ability to continue operating in that country, either temporarily
or permanently, and affect Eni&#146;s ability to access oil and
gas reserves. In August 1996, the United States adopted the Iran
and Libya Sanctions Act (the &quot;Sanctions Act&quot;). On April
23, 2004 the President of the United States terminated the
application of the Sanctions Act to Libya, with the remaining
economic sanctions against Libya lifted on September 23, 2004.
The Sanctions Act still applies to Iran and authorizes the
President of the United States to impose sanctions from a
six&#150;sanction menu under certain circumstances against any
person, including any foreign company, making investments in
Iran, thus contributing directly and significantly to the
enhancement of Iran&#146;s ability to develop its hydrocarbons
resources. The Sanctions Act is scheduled to expire on August 5,
2006. Eni does not believe that enforcement of the Sanctions Act
against it would have a material adverse effect on its financial
condition or results of operations. Iran and Libya continue to be
designated by the U.S. Office of Global Security Risks as States
sponsoring terrorism. For a description of Eni's operations in
Iran and Libya see &quot;Item 4 &#150; Information on the Company
&#150; Exploration and Production &#150; North Africa and Rest of
the World.&quot;</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Cyclicality of the Petrochemical Industry</i></b></p>
</blockquote>

<p>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
geographic 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 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Liberalization of the Italian Natural Gas Market</i></b></p>
</blockquote>

<p>Legislative Decree No. 164 dated May 23, 2000 opened the
Italian natural gas starting on January 1, 2003. This means that
all customers in Italy are free to choose their supplier of
natural gas. The decree, among other things, introduced rules
which have a significant impact on Eni's activity, as the company
is present in all the phases of the natural gas chain, in
particular:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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 into 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, paragraph 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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">transport of natural gas by
        means of high pressure trunklines, storage of natural gas
        and distribution of natural gas in urban centers by means
        of low pressure networks are activities of public
        relevance and criteria for determining tariffs of those
        activities are set by the Authority for Electricity and
        Gas (the &quot;Authority for Electricity and Gas&quot;),
        and</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">third parties are allowed to
        access natural gas infrastructure &#150; which comprises,
        among other things, high pressure trunklines, low
        pressure networks and storage sites &#150; according to
        set conditions.</td>
    </tr>
</table>

<p>The new regulatory regime has the effect of limiting the size
and profitability of Eni&#146;s natural gas business in Italy.</p>

<blockquote>
    <p><i>Eni's natural gas margin</i><a href="#1"><sup>1</sup></a><i>
    in Italy may decrease permanently compared to historical
    levels</i></p>
</blockquote>

<p>In order to meet the expected growth of the Italian natural
gas market over the medium and long-term, Eni entered into
long-term purchase contracts with producing countries that
currently have a residual average term of approximately 16 years.
Existing contracts, which in general contain take-or-pay clauses,
will ensure total delivery of approximately 67.3 billion cubic
meters of natural gas per year (Russia 28.5, Algeria 21.5, the
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 that Eni
is committed to purchase under its take-or-pay obligations is
approximately 85% of said quantities. In order to comply with the
above mentioned regulatory thresholds relating to volumes input
into the national transport network, Eni signed multi-year
contracts with third party importers to sell natural gas volumes
exceeding the thresholds outside of the Italian territory; in
prior years those volumes were imported into Italy and sold to
Italian consumers by Eni. This change in the sale mix is
structural and is adversely affecting 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.</p>

<blockquote>
    <p><i>Eni growth prospects in Italy are limited by regulation</i></p>
</blockquote>

<p>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 this development might have
a material adverse impact on Eni's results of operations.</p>

<blockquote>
    <p><i>Due to the regulated access to natural gas transport
    infrastructure in Italy, 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</i></p>
</blockquote>

<p>Natural gas imports for the next few years were planned by Eni
based on the highest flexibility allowed by long-term supply
contracts, assuming the availability of the transport capacity on
the Italian transport infrastructure. However, the current
Network Code as set by the Authority for Electricity and Gas with
Decision No. 137 of July 17, 2002, in implementation of Article
24, paragraph 5 of Legislative Decree No. 164/2000, established
priority criteria for the allocation of transport capacity of
natural gas at points where international transport
infrastructure connects with Italian transport infrastructure
(the so-called entry points to the Italian transport system)
which are not consistent with Eni&#146;s own planning
assumptions. Under the current Network Code, entitlement periods
can last no longer than five years. In particular the allocation
rules establish that take-or-pay contracts entered into before
1998 are entitled to priority in the assignment of available
transport capacity to the extent of average daily contractual
volumes. There is therefore no guaranteed access priority for
Eni&#146;s contracted volumes exceeding average daily contractual
volumes. In fact, take-or-pay contracts entered into by Eni
before 1998 envisage Eni's right to withdraw daily volumes larger
than the average daily contractual volume; this contractual
flexibility provided by the difference between the maximum daily
volume Eni is entitled to and the average daily contractual
volume is used when demand peaks, usually during the winter. In
the event of congestion at entry points, natural gas volumes not
receiving priority are assigned available transport capacity on a
pro rata basis. Eni considers Decision No. 137/2002 to be
inconsistent with the overall rationale of the European natural
gas legislative framework, especially with reference to Directive
98/30/CE and Legislative Decree No. 164/2000, and is challenging
Decision No. 137/2002 before the competent administrative courts.
See &quot;Item 4 &#150; Regulation of the Italian Hydrocarbons
Industry &#150; Gas &amp; Power&quot;. However, Eni cannot rule
out a negative outcome in this matter. Accordingly, management
believes that Eni's results of operations could be negatively
affected should market conditions or regulatory constraints
prevent Eni from selling its whole availability of natural gas
under take-or pay contract obligations (i.e., in case congestion
occurs at the entry points of the Italian transport
infrastructure which would force Eni to withdraw a smaller volume
of gas than the contractual minimum take). See &quot;Item 5
&#150; Management Expectations of Operations&quot;.</p>

<blockquote>
    <p><i>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</i></p>
</blockquote>

<p>Eni cannot predict future developments in the institutional
debate ongoing in Italy regarding the liberalization of the
natural gas market. One important development in this area was
Law No. 290/2003, which prohibits Eni from holding an interest
higher than 20% in undertakings owning natural gas transport
infrastructure in Italy (Eni currently holds a 50.07% interest in
Snam Rete Gas, which owns and manages approximately 97% of the
Italian natural gas transport infrastructure). On the basis of
the findings of a joint inquiry conducted in 2003 through June
2004 on the Italian natural gas market, the Authority for
Electricity and Gas and the Italian Antitrust Authority (the
&quot;Antitrust Authority&quot;) acknowledged that 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. According to both the Authority
for Electricity and Gas and the Antitrust Authority, 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 by Legislative
Decree 164/2000. It was further stated that the price of natural
gas in Italy (in particular for the industrial sector) is higher
than in other European countries. Accordingly, both the Authority
for Electricity and Gas and the Antitrust Authority 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 long-term take-or-pay natural gas supply contracts.</p>

<p>In January 2005 the Antitrust Authority commenced an inquiry
concerning Eni&#146;s alleged abuse of dominant position in
violation of the competition rule as per Article 82 of the Treaty
of Rome with the effect of preventing the entrance of Eni's
competitors into the Italian gas sales market. See &quot;Item 4
&#150; Regulation of the Italian Hydrocarbons Industry &#150; Gas
&amp; Power &#150; Procedures against the Antitrust
Authority&quot;.</p>

<p>Management believes the institutional debate on the degree of
competition in the Italian natural gas market and the regulatory
activity to be areas of attention for management and cannot
exclude negative impacts on Eni&#146;s financial condition or
results of operations in future years deriving from the
development of these matters.</p>

<blockquote>
    <p><i>Should third parties&#146; plans for the construction
    of LNG terminals be implemented as announced, Eni believes an
    oversupply of natural gas is likely to occur in the long-term
    (beyond 2007)</i></p>
</blockquote>

<p>In the long-term Eni plans to upgrade its natural gas import
infrastructure from Russia and Algeria in order to meet the
expected growth of natural gas demand in Italy and to renegotiate
its purchase contracts from those suppliers on a more favorable
and flexible basis. Those plans are to be evaluated taking into
account the developments of third parties&#146; plans for the
construction of a new LNG terminal in Italy. Two operators in the
Italian natural gas market have publicly announced plans to
develop LNG terminals in Italy. Should these LNG plans be
implemented according to scheduled times, Eni believes a natural
gas oversupply is likely to occur in the Italian natural gas
market, based on current plans in 2008-2012, when the additional
import capacity from Eni and third parties should come onstream.
This scenario, if it occurs, is likely to cause a decrease in
natural gas margins.</p>

<blockquote>
    <p><i>Decisions of the Authority for Electricity and Gas in
    the matter of natural gas tariffs may diminish Eni&#146;s
    ability to determine the price at which it sells natural gas
    to customers </i></p>
</blockquote>

<p>On the basis of certain legislative provisions, the Authority
for Electricity and Gas holds a general surveillance power on
pricing in the natural gas market in Italy and the power to
establish selling tariffs in the natural gas residential and
commercial segments taking into account, among other things, the
public interest goal of containing the inflationary pressure due
to a rise in energy costs. The decisions of the Authority for
Electricity and Gas on these matters may limit the ability of Eni
to pass an increase in the cost of fuels on to the final
consumers of natural gas. For example, Decision No. 248/2004 of
the Authority for Electricity and Gas establishes, among other
things: (i) that an increase in the international price of Brent
crude oil is only partially transferred on to residential and
commercial users of natural gas in the case where the
international price of Brent crude oil exceeds the 35 dollar per
barrel threshold; and (ii) that Italian natural gas importers
&#150; including Eni &#150; must renegotiate supply contracts to
wholesalers in order to take into account the reduction of the
price of natural gas sold to residential and commercial users.
Eni appealed this decision against an administrative court which
temporarily suspended the decision of the Authority for
Electricity and Gas.</p>

<p>However, Eni&#146;s management believes that should this
decision be implemented in its original form, a material negative
impact on the operating income of Eni&#146;s natural gas segment
would occur in 2005. See &quot;Item 4 &#150; Regulation of the
Italian Hydrocarbons Industry &#150; Gas &amp; Power&quot;.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Environmental Regulation</i></b></p>
</blockquote>

<blockquote>
    <p><i>Eni may incur material operating costs and liabilities
    in relation to compliance with applicable environmental
    regulations and environmental developments</i></p>
</blockquote>

<p>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. </p>

<p>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
effects of future environmental regulation, such as the ones
deriving from Decree No. 367 of the Ministry of Environment
published in January 8, 2004, regarding the fixing of new quality
standards for aquatic environment in relation to dangerous
substances, and those that may derive from the legislative decree
that the Italian Government will have to enact in order to
implement Directive 2000/60/CE creating a framework for joint
European action in the area of water; (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.</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Legal Proceedings</i></b></p>
</blockquote>

<p>Eni is a party to a number of civil actions and administrative
proceedings arising in the ordinary course of business. Although
Eni&#146;s management does not currently expect a material
adverse effect on Eni&#146;s financial position and profitability
on the basis of information available to date and taking account
of the existing provisions, Eni&#146;s management cannot rule out
that in future years Eni may incur material losses in connection
with pending legal proceedings due to: (i) uncertainty; (ii) the
occurrence of new developments that management could not take
into consideration when evaluating the likely outcome of each
proceeding in order to accrue the risk provisions as of the date
of the latest financial statements; (iii) the emergence of new
evidence and information; and (iv) errors in the estimate of
probable future losses. </p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Risks deriving from changes in oil prices and in
    natural gas, refined and petrochemical products prices and
    margins</i></b></p>
</blockquote>

<p>Operating results in certain of Eni&#146;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. </p>

<blockquote>
    <p><i>Eni&#146;s results of operations are affected by
    changes in international oil prices</i></p>
</blockquote>

<p>Overall, lower oil prices have a net adverse impact on
Eni&#146;s results of operations. The effect of lower oil prices
on Eni&#146;s average realizations of oil prices is generally
immediate. However Eni&#146;s average realization for oil differs
from the price of marker crude Brent due primarily to the
circumstance that Eni&#146;s production slate, which also
includes 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).</p>

<blockquote>
    <p><i>The favorable impact of higher oil prices on Eni&#146;s
    results of operations may be offset by the different trends
    of margins in Eni&#146;s downstream businesses</i></p>
</blockquote>

<p>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&#146;s natural gas business tend to mitigate the
impact of changes in oil prices on Eni&#146;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.</p>

<blockquote>
    <p><i>Eni&#146;s results of operations are affected by
    changes in European refining margins</i></p>
</blockquote>

<p>The results of operations of Eni&#146;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.</p>

<blockquote>
    <p><i>Eni&#146;s results of operations are affected by
    changes in petrochemical margins</i></p>
</blockquote>

<p>Eni&#146;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 in the short-term. Prolonged weakness of the
European economy as well as Eni&#146;s own structural weaknesses
have prevented Eni&#146;s Petrochemical segment from returning to
profitability in recent years due to the inability to transfer
increases of oil-based feedstocks into selling prices. Due to
industry conditions and weak economic growth in Europe,
management does not expect any significant and durable
improvement in Petrochemicals segment profitability over the
foreseeable future.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Exchange Rates</i></b></p>
</blockquote>

<p>Movements in the exchange rate of the euro against the US
dollar can have a material impact on Eni&#146;s results of
operations. Prices of oil, natural gas and refined products
generally are denominated in, or linked to, US dollars, while a
significant portion of Eni&#146;s expenses is denominated in
euro. Similarly, prices of Eni&#146;s petrochemical products
generally are denominated in, or linked to, euro, whereas
expenses in the Petrochemicals segment are denominated both in
euro and US dollars. Accordingly a depreciation of the US dollar
versus the euro generally has an adverse impact on Eni results of
operations.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Weather in Italy and Seasonality</i></b></p>
</blockquote>

<p>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&#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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Interest Rates</i></b></p>
</blockquote>

<p>Interest on Eni&#146;s financial debt is primarily indexed at
a spread to benchmark rates such as the Europe Interbank Offered
Rate, &quot;EURIBOR&quot; and the London Interbank Offered Rate,
&quot;LIBOR&quot;. As a consequence, movements in interest rates
can have a material impact on Eni&#146;s financial expense in
respect of its financial debt.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Critical Accounting Estimates</i></b></p>
</blockquote>

<p>The preparation of financial statements entails accounting
estimates that are characterized by a high degree of uncertainty,
complexity and judgement. Although these critical accounting
estimates are thoroughly applied and underlying amounts are
fairly determined, management cannot rule out that actual
outcomes may differ from such estimates, 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 &quot;Item 5 &#150; Critical Accounting
Estimates&quot;.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Eni shall adopt new accounting standards in 2005
    that may affect the methods used by the financial community
    to evaluate Eni's performance and the value of Eni stock</i></b></p>
</blockquote>

<p>Beginning in 2005 Eni, whose shares are listed on a regulated
market of a Member State of the European Union, is required to
prepare its financial statements in accordance with International
Financial Reporting Standards (IFRS) issued by the International
Accounting Standard Board (IASB) and adopted by the European
Commission according to the procedure set forth in Article 6 of
the European Regulation (CE) No. 1606/2002 of the European
Parliament and European Council of July 19, 2002.</p>

<p>For a detailed description of the principle effects expected
on Eni's financial statements due to the adoption of IFRS, see
&quot;Item 5. Operating and Financial Review and Prospects &#150;
Qualitative discussion of the impact of IFRS on Eni's financial
statements&quot;.</p>

<p>Because Eni's financial statements prepared in accordance with
IFRS will differ from Eni's financial statements prepared in
accordance with Italian GAAP, the methods used by the financial
community to assess our financial performance and value of our
publicly traded securities, such as price-to-earnings ratios and
debt-to-equity ratios, could be affected.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 4">Table of Contents</a></h5>

<p><font size="4"><b>Item 4. INFORMATION ON THE COMPANY</b></font></p>

<p><font size="3"><b>History and Development of the Company</b></font></p>

<p>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 71,497 employees as of December 31, 2004.</p>

<p>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.</p>

<p>Eni&#146;s registered head office is located at Piazzale
Enrico Mattei 1, Rome, Italy (telephone number: +39-0659821). Eni
branches are located in:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">San Donato Milanese (Milan),
        Via Emilia, 1;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">San Donato Milanese (Milan),
        Piazza Ezio Vanoni, 1.</td>
    </tr>
</table>

<p>Internet address: www.eni.it.</p>

<p>The name of the agent of Eni in the United States is Viscusi
Enzo, 666 Fifth Ave., New York, NY 10103</p>

<p>Eni&#146;s principal segments of operations and subsidiaries
are described below.</p>

<p>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, North Africa, West Africa, the North Sea, the Gulf of
Mexico, South America, the Middle and Far East, the Caspian Sea
and Australia. In 2004, Eni&#146;s hydrocarbon production
averaged 1,586 KBOE/d and, at December 31, 2004, Eni&#146;s
estimated proved reserves totalled 7,218 mmBOE with a life index
of 12.1 years. In 2004, Eni&#146;s Exploration &amp; Production
segment had net sales from operations (including intersegment
sales) of euro 15,349 million and operating income of euro 8,017
million.</p>

<p>Snam SpA was merged into Eni SpA effective as of February 1,
2002 to become Eni&#146;s Gas &amp; Power Division. Eni conducts
its natural gas and electricity generation activities through its
Gas &amp; Power Division and certain operating subsidiaries.
Eni&#146;s 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 2004,
Eni&#146;s sales of natural gas to third parties totalled 50.39
billion cubic meters in Italy and 21.87 billion cubic meters in
the rest of Europe; Eni's share of natural gas volumes sold by
its affiliates totalled 7.32 billion cubic meters (of which 6.6
billion in the rest of Europe). Natural gas volumes consumed in
operations by Eni and Eni&#146;s subsidiaries &#150; mainly in
electricity generation, refining and petrochemicals operations
&#150; totalled 3.70 billion cubic meters. Natural gas sales in
Italy include: (i) sales to wholesalers, mainly local
distribution companies, and to large industrial and
thermoelectric customers which are supplied by a high and medium
pressure pipeline network; (ii) sales to residential and
commercial customers which are supplied by a low pressure
pipeline network. Eni&#146;s high and medium pressure gas
pipeline network for natural gas transport is about
30,000-kilometers long in Italy, while outside Italy Eni holds
transmission rights on approximately 5,000 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 (&quot;shippers&quot;); in 2004, its transported
volumes were 80.41 billion cubic meters, of which 28.26 billion
were on behalf of third parties. Eni, through its 100% subsidiary
Italgas and other subsidiaries, is engaged in natural gas
distribution activity in Italy serving 1,236 municipalities
through a low pressure network consisting of over 47,000
kilometers of pipelines as of December 31, 2004.</p>

<p>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 3.3 gigawatts as of December 31, 2004. In 2004,
sold production of electricity totalled 13.85 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.</p>

<p>In 2004, Eni&#146;s Gas &amp; Power segment had net sales from
operations (including intersegment sales) of euro 17,258 million
and operating income of euro 3,463 million.</p>

<p>AgipPetroli SpA was merged into Eni SpA effective December 31,
2002 to become Eni&#146;s Refining &amp; Marketing Division. Eni
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 and Europe. In 2004,
Eni's market share in the retail market of refined products in
Italy was 36.3%. In 2004, sales of refined products totalled
53.54 million tonnes, of which 30.69 million were in Italy. The
balanced refining capacity of Eni&#146;s wholly-owned refineries
totalled 504 KBBL/d as of December 31, 2004. In 2004, Eni&#146;s
Refining &amp; Marketing segment had net sales from operations
(including intersegment sales) of euro 26,094 million and
operating income of euro 965 million.</p>

<p>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 2004, Eni
sold 5.3 million tonnes of petrochemical products. In 2004,
Eni&#146;s Petrochemicals segment had net sales from operations
(including intersegment sales) of euro 5,417 million and an
operating income of euro 271 million.</p>

<p>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. 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 and petrochemical industries. In 2004,
Eni&#146;s Oilfield Services, Construction and Engineering
segment had net sales from operations (including intersegment
sales) of euro 6,494 million and operating income of euro 260
million.</p>

<p>A list of subsidiaries of Eni is included as an exhibit to
this Form 20-F.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Strategy</i></b></p>
</blockquote>

<p>Eni intends to maintain strong hydrocarbon production growth
by leveraging in particular on the contribution of large projects
in the development phase and increasing efficiency both in
exploration and in development/production through the selection
of exploration projects, the geographic concentration of
production, the rationalization of marginal assets and assets
with low development prospects, and strengthening its role as
operator. Management intends to devote special attention to
reserve replacement in order to support the sustainability of
long-term growth. In natural gas activities Eni intends to expand
sales in European markets and implement a break-through strategy
in the LNG business with the objective of attaining a worldwide
presence and exploiting its natural gas reserves. Eni intends to
maintain the leadership in the Italian natural gas market through
a proactive approach towards the ongoing liberalization process,
a higher degree of flexibility and the diversification of its
import system, the gradual reduction of its presence in regulated
businesses and the completion over time of the plan of expansion
of power generation capacity. In downstream oil Eni intends to
continue the process of upgrading its distribution network in
Italy in order to reach European standards in terms of average
throughput and services to customers, to increase its offer of
diversified fuels with low environmental impact and develop non
oil activities, while developing/consolidating its presence in
target European markets where it can leverage on operating
synergies and a well established brand. In refining Eni intends
to increase the conversion rate and flexibility of refineries in
order to produce high quality fuels anticipating the
environmental requirements of new European regulations. In
oilfield services, construction, and engineering activities Eni
intends 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 transmission and natural gas and heavy
crudes upgrading.</p>

<p>Eni intends to reduce the capital employed in non-core
businesses and to improve operational efficiency and efficacy.</p>

<p>Management intends to devote strong attention to research and
development of new technologies, which management believes to be
the key factor for the future development of the oil industry.
Eni intends to invest over euro 1 billion in such R&amp;D
activities in the next four years. Expenditure will be focused on
those strategic projects through which Eni can achieve
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.</p>

<p>Eni intends to support its growth strategy by implementing a
four year capital expenditure plan of euro 26.9 billion,
approximately 90% of which will be concentrated in the
Exploration &amp; Production, Gas &amp; Power and Refining &amp;
Marketing segments.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Key Developments</i></b></p>
</blockquote>

<p>The most significant events that occurred during 2004 and to
date in 2005 were the following:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in 2004, hydrocarbon
        production available for sale averaged 1.586 mmBOE/d, a
        3.3% increase compared to year 2003. Eni&#146;s proved
        reserves of hydrocarbons at December 31, 2004 totalled
        7,218 mmBOE, decreasing by 0.7% compared to 2003.
        Increases in proved reserves allowed Eni to replace 91%
        of production; the average reserve life index was 12.1
        years (12.7 in 2003);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">within the North Caspian Sea
        PSA, in March 2005 Eni increased its interest in the
        operated project from 16.67% to 18.52% following the
        pre-emptive right exercised in May 2003 for the purchase
        of the share of British Gas which left the project. The
        development plan of the Kashagan field was approved by
        the Kazakh authorities on February 25, 2004, entailing a
        total expenditure amounting to dollars 29 billion
        (dollars 5.4 billion being Eni&#146;s share). At March
        2005 contracts for the development of this field had been
        awarded for a total of dollars 6.7 billion. Production
        plateau is targeted at 1.2 million barrels/day. Appraisal
        activities performed in 2004, confirmed the mineral
        potential of the discoveries made in the area under
        contract;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in March 2004, in Saudi
        Arabia, an exploration license for the extraction of
        natural gas in the so called C area covering about 52,000
        square kilometers 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);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the Western Libyan Gas
        integrated project was started-up. This project concerns
        the development of two hydrocarbon fields in Libya and
        the marketing of natural gas produced on European
        markets. When fully operational in 2006, volumes produced
        and transported via the underwater Greenstream gasline
        which started operations in October 2004 are planned to
        total 8 billion cubic meters/year (4 of which net to Eni,
        equivalent to 141.3 BCF/year) already booked by operators
        under long-term contracts;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">sales of natural gas,
        including own consumption and Eni&#146;s share of sales
        of affiliates, reached 84.5 billion cubic meters (up 7.8%
        over 2003). Growth was achieved in markets of the rest of
        Europe in line with Eni&#146;s strategy of international
        expansion in natural gas in markets with interesting
        growth and profitability prospects;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Eni sold a 9.054% interest
        in Snam Rete Gas in accordance with Law No. 290/2003
        which prohibits companies operating in the natural gas
        sector to hold interests higher than 20% in companies
        owning national gas transmission networks, beginning July
        1, 2007. The sale entailed proceeds of euro 650 million
        and a gain of euro 519 million recognized in the 2004
        consolidated financial statements</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Eni continued its plan for
        expanding its power generation capacity targeting 5.3
        gigawatt of installed capacity in 2007. In 2004, a total
        of 1.3 gigawatts were installed, thus increasing
        Eni&#146;s installed capacity to 3.3 gigawatts at year
        end. According to management plans, when fully
        operational the new combined cycle gas fired plants will
        allow consumption of over 6 billion cubic meters per year
        of natural gas produced or purchased by Eni;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in the downstream oil
        business Eni sold its activities in the distribution of
        refined products and LPG in Brazil, and continued the
        rationalization of its Agip branded retail network in
        Italy, which led average throughput to reach over 2.5
        million liters (up 4.5% over 2003). In Italy Eni sold
        approximately 13.8 billion liters. With over 4.4 billion
        liters, sales in the rest of Europe increased by over 15%
        compared to year 2003 due to the selective growth
        strategy pursued. In April 2005 Eni signed a preliminary
        agreement for the sale of its wholly-owned subsidiary
        Italiana Petroli which sells petroleum products in Italy
        under the IP brand.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>In 2004, Eni invested approximately euro 7.8 billion in new
capital expenditure and investments. Capital expenditure amounted
to 7.5 billion (of which 94% related to the Exploration &amp;
Production, Gas &amp; Power and Refining &amp; Marketing
segments) and concerned: (i) development of hydrocarbon fields
(euro 4,369 million) in particular in Libya, Iran, Angola, Italy,
Kazakhstan, Egypt, Nigeria and Norway, and exploration (euro 499
million); (ii) development and maintenance of Eni&#146;s natural
gas transmission and distribution network in Italy (euro 721
million); (iii) the construction of the tar gasification plant at
the Sannazzaro refinery, actions on refineries for the adjustment
of automotive fuel characteristics to new European specifications
and the upgrade of the refined product distribution network in
Italy and in the rest of Europe (for a total of euro 669
million); and (iv) the continuation of the construction of
electricity generation plants (euro 451 million). In 2004,
capital expenditure decreased by approximately euro 1.3 billion
over 2003, or 15%, due to a euro 0.77 billion reduction, or 13%,
in the Exploration and Production business principally due to the
impact of the 10% appreciation of the euro over the US dollar and
a euro 0.3 billion reduction, or 18%, in the Gas &amp; Power
business principally due to the completion of the Greenstream
underwater pipeline project.</p>

<p>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; and
(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), of 50% of Uni&#243;n Fenosa Gas (euro 442 million) and 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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Business Overview">Table of Contents</a></h5>

<p align="center"><font size="4"><b>BUSINESS OVERVIEW</b></font></p>

<p><font size="3"><b>Exploration &amp; Production</b></font></p>

<p>Eni is engaged in exploration and production of hydrocarbons
in Italy, North Africa, West Africa, the North Sea, the Gulf of
Mexico, South America, the Caspian Sea, the Middle and Far East
and Australia.</p>

<p>Eni is pursuing a growth strategy aimed at achieving a
production target of approximately 2 mmBOE/d by 2008, which
corresponds to a compound average growth rate of more than 5%
over the next four years.</p>

<p>Management plans to achieve this production target through
organic growth, leveraging in particular on the contribution of
significant projects started up in 2004, as well as projects in
the development phase in Libya, Angola, Nigeria, Iran and
Kazakhstan. Eni intends to focus on reserve replacement in order
to maintain the medium to long-term sustainability of its
business. Management will also continue to evaluate opportunities
to increase production through acquisition of corporations and
individual assets. Management intends to evaluate these
opportunities on the basis of Eni&#146;s internal criteria of
capital and financial discipline.</p>

<p>Eni will continue to improve its performance by searching for
operating solutions with lower operating costs and synergies.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Oil and Natural Gas Reserves</i></b></p>
</blockquote>

<p>Eni continues to exercise rigorous control over the booking of
proved reserves. The Reserve Department of the Exploration &amp;
Production segment, reporting directly to the General Manager for
the Exploration &amp; Production Division, is entrusted with the
task of keeping reserve classification criteria
(&quot;criteria&quot;) constantly updated and of monitoring the
periodic process of reviewing estimates. The criteria follow the
rules issued by the Financial Accounting Standard Board and the
Securities and Exchange Commission (&quot;SEC&quot;), as well as,
on specific issues not regulated by rules, the consolidated
practice recognized by qualified reference institutions. The
current criteria applied by Eni have been examined by DeGolyer
and MacNaughton (&quot;D&amp;M&quot;), an independent petroleum
engineering company, which confirmed that they are compliant with
the SEC principles. D&amp;M also stated that the criteria used by
Eni regulate situations for which the SEC rules are less precise
and provide a reasonable interpretation in line with the
generally accepted practices in international markets. Eni
estimates its proved reserves on the basis of the above mentioned
criteria also when it participates in exploration and production
activities operated by other entities.</p>

<p>Beginning in 1991 Eni has requested qualified independent
petroleum engineering companies to carry out an independent
evaluation<a href="#(2)"><sup>2</sup></a><sup> </sup>of its
proved reserves on a rotation basis. In particular in 2004, a
total of 2.2 billion BOE of proved reserves, or about 30% of
Eni&#146;s total proved reserves at December 31, 2004, have been
evaluated. The results of this independent evaluation confirmed
Eni&#146;s evaluations, as they did in past years. In the
2003-2004 two-year period independent evaluations concerned 63%
of Eni&#146;s total proved reserves; in particular evaluations
concerned all the new development projects, including Kashagan,
and most large-sized mature fields.</p>

<p>Eni&#146;s proved reserves of hydrocarbons at December 31,
2004 totalled 7,218 mmBOE (oil and condensates 4,008 mmBBL;
natural gas 18,435 BCF) slightly decreasing (down 0.7%) over
December 31, 2003. The reserve replacement ratio was 91% in 2004;
the average reserve replacement ratio for the last three years
was 117%. The average reserve life index is 12.1 years (12.7 at
December 31, 2003). The reserve replacement ratio was calculated
dividing additions to proved reserves for year 2004 by total
production, each as derived from the tables of changes in proved
reserves prepared in accordance with SFAS No. 69 presented in
Note 29 to the Consolidated Financial Statements. Management
considers the reserve replacement ratio to be a key measure of
the ability of the company to sustain its growth prospects.
However, the ratio measures past performance and cannot be used
to forecast the ability of management to replace produced reserve
in future years.</p>

<p>Additions to proved reserves booked in 2004 (621 mmBOE) were
derived from: (i) extensions and discoveries (329 mmBOE), in
particular in Kazakhstan, Egypt, Libya, Australia, Angola and the
United Kingdom; (ii) revisions of previous estimates (227 mmBOE),
in particular in Egypt, Libya, Iran, Congo, Pakistan, Angola and
Norway, offset in part by decreasing revisions in Kazakhstan and
Algeria related to lower entitlements in PSAs<a href="#(3)"><sup>3</sup></a>
due to higher oil prices, and the United States; (iii) improved
recovery (65 mmBOE), in particular in Angola and Algeria. These
increases offset in part the decline related to production for
the year (594 mmBOE) and sales of minerals in place in the
British section of the North Sea, Italy, Gabon, Azerbaijan, the
Netherlands and Egypt (81 mmBOE). Due to risks inherent in the
exploration and production business, a degree of uncertainty
still exists as to whether these additions will actually be
produced. See &quot;Item 3 &#150; Risks associated with the
exploration and production of oil and natural gas and
Uncertainties in estimates of oil and natural gas reserves&quot;.</p>

<p>Proved developed reserves at December 31, 2004 amounted to
4,300 mmBOE (2,471 mmBBL of oil and condensates and 10,501 BCF of
natural gas), representing 60% of total estimated proved reserves
(58% and 53% at December 31, 2003 and 2002, respectively).</p>

<p>Proved reserves of hydrocarbons applicable to long-term supply
agreements with foreign governments in mineral assets where Eni
is operator represented approximately 10% of all proved reserves
at December 31, 2004 (8% at December 31, 2003).</p>

<p style="page-break-before:always">The table below sets forth a
geographical breakdown of Eni&#146;s proved reserves of
hydrocarbons, on a barrel of oil equivalent basis, for the
periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(mmBOE)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">Italy</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,389</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,315</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,199</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">996</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">890</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%"><font size="2">North Africa</font></td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,929</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">2,122</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">2,033</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">2,024</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">2,117</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">West Africa</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,093</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,136</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,287</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,324</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,357</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%"><font size="2">North Sea</font></td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">700</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">879</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">825</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">912</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">807</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">Rest of World</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">897</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,477</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,686</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,016</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,047</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,008</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,929</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,030</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,272</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,218</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<blockquote>
    <p><b><i>Mineral Right Portfolio and Exploration Activity</i></b></p>
</blockquote>

<p>As of December 31, 2004, Eni&#146;s portfolio of mineral
rights consisted of 919<a href="#(4)"><sup>4</sup></a> exclusive
or shared rights for exploration and development in 34 countries
on five continents, for a total net acreage of 234,180<a
href="#(5)"><sup>5</sup></a> square kilometers (242,635 at
December 31, 2003). Of these, 41,997 square kilometers concerned
production and development (43,879 at December 31, 2003). Outside
Italy net acreage decreased by 1,881 square kilometers due to the
divestment of assets in Gabon, Mauritania, Senegal, the British
section of the North Sea, the Netherlands and Egypt, and
releases, in particular in Australia and Congo. Increases were
registered in Saudi Arabia, Indonesia, Norway and Russia. In
Italy net acreage declined by 6,575 square kilometers due to the
divestment of assets, whose effects were offset in part by the
awarding of 4 new concessions.</p>

<p>A total of 66 new exploratory wells were drilled (29.5 of
which represented Eni&#146;s share on the basis of its working
interest in relevant properties), as compared to 105 exploratory
wells completed in 2003 (43 of which represented Eni&#146;s
share). Overall success rate was 52.1% in 2004, as compared to
46.7% in 2003; the success rate of Eni&#146;s share of
exploratory wells was 57.3% in 2004, as compared to 45.7% in
2003.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Production</i></b></p>
</blockquote>

<p><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></p>

<p>In 2004, hydrocarbon production available for sale averaged
1,586 KBOE/d (oil and condensates 1,034 KBBL/d; natural gas 3,171
mmCF/d) increasing by 50 KBOE/d compared to 2003, up 3.3%, due
to: (i) production increases registered mainly in Nigeria,
Angola, Kazakhstan, Pakistan, Libya and Egypt; and (ii) the
start-up of fields in Angola, Australia, Algeria and Libya. These
increases were partly offset by: (i) declines in mature fields
mainly in Italy and the United Kingdom; (ii) lower production
entitlements (38 KBOE) in PSAs related to higher international
oil prices; and (iii) the effect of the divestment of assets (13
KBOE). The share of production outside Italy was 82.6% (80.1% in
2003).</p>

<p>Production of oil and condensates (1,034 KBBL/d) increased by
53 KBBL/d compared to 2003, up 5.4%, due to increases registered
in: (i) Nigeria, due to the start-up of the Okpoho field
(Eni&#146;s interest 100%) and the reaching of full production of
the Abo (Eni operator with a 50.19% interest) and the Nase-EA
(Eni&#146;s interest 12.86%) fields; (ii) Angola, due to the
reaching of full production at the Xicomba field and the start-up
of the fields of the Kizomba A area in Block 15 (Eni&#146;s
interest 20%); (iii) Kazakhstan, in the Karachaganak field (Eni
co-operator with a 32.5% interest) due to the beginning of
exports from the Novorossiysk terminal on the Russian coast of
the Black Sea; (iv) Venezuela, due to the fact that in early 2003
production had been interrupted during a general strike; (v)
Australia, due to the reaching of full production at the
Woollybutt field (Eni operator with a 65% interest) and the
start-up of the Bayu Undan field (Eni&#146;s interest 12.04%);
(vi) Libya, due to the start-up of the Wafa (Eni&#146;s interest
50%) and Elephant fields (Eni&#146;s interest 33.33%); and (vii)
Algeria, due to the start-up of the Rod and satellite fields (Eni
operator with a 63.96% interest). These increases were partly
offset by declines of mature fields, in particular in the United
Kingdom, and by the effect of the divestment of assets. In Italy
the production decline of mature fields (in particular
Villafortuna/Trecate, Ragusa and Aquila) was offset in part by
higher production in Val d&#146;Agri notwithstanding the
standstills related to the connection of the fourth treatment
train of the oil center.</p>

<p>Production of natural gas available for sale (3,171 mmCF/d)
decreased by 3 mmCF/d compared to 2003, down 0.09%, principally
due to declines of mature fields, in particular in Italy and the
United Kingdom and the effects of divestments. These decreases
were offset in part by increases registered in: (i) Pakistan, due
to the reaching of full production at the Sawan (Eni&#146;s
interest 23.68%) and Bhit (Eni operator with a 40% interest)
fields; (ii) Egypt, due to an increase in local demand; (iii)
Libya, due to the start-up of the Wafa field (Eni&#146;s interest
50%); and (iv) Kazakhstan, Norway (reaching of full production of
the Mikkel field, Eni&#146;s interest 14.9%) and Nigeria.</p>

<p>Hydrocarbon production sold totalled 576.5 mmBOE. About 70% of
oil and condensate production sold (374.3 mmBBL) was delivered to
Eni&#146;s Refining &amp; Marketing segment (70% in 2003). About
40% of natural gas production sold (1,162 BCF) was delivered to
Eni&#146;s Gas &amp; Power segment (43% in 2003).</p>

<p style="page-break-before:always">The tables below set forth
Eni&#146;s production of oil and condensates and natural gas for
the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(KBBL/d)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Production of oil and condensates</b> <sup>(1)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Italy</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">76</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">69</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">86</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">80</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">227</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">228</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">252</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">250</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">261</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">213</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">219</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">222</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">236</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">285</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">124</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">204</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">213</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">235</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">203</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">137</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">148</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">176</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">205</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">748</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">857</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">921</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">981</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,034</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(mmCF/d)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2"><b>Natural gas production available for sale</b>
        <sup>(1)</sup> <sup>(2)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Italy </font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,438 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,313 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,260</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,181</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,067</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">North Africa</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">454</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">497</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">560</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">559</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">619</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">West
        Africa</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">67</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">82</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">87</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">128</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">143</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">North Sea</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">258</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">450</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">516</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">596</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">560</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Rest of
        the World</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">276</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">485</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">592</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">710</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">782</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,493</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,827</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,015</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,174</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,171</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="2%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Production
        information set forth above differs from production as
        reported in the reserve tables in Note 29 to the
        Consolidated Financial Statements &#150; 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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%"><font size="1"></font>&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Natural gas
        production volumes consumed in operations are excluded.
        The effect was 94, 132, 151 and 220 mmCF/d in 2001, 2002,
        2003 and 2004, respectively.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p style="page-break-before:always">The table below sets forth
certain information and operating data regarding Eni&#146;s
principal oil and natural gas interests for the year ended
December 31, 2004.</p>

<p><b>Principal oil and natural gas interests at December 31,
2004</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Commencement of operations</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Number of interests</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Net exploration and development acreage</b><sup>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Net development acreage</b><sup>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1"><b>Type of fields</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Number of producing fields</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Number of other fields</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" align="left"
        noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"
        height="16"><font size="2"><b>Italy</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"
        height="16"><p align="center"><font size="2">1926</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="2">214</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="2">33,635</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="2">13,184</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"
        height="16"><p align="center"><font size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="2">81</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"
        height="16"><p align="right"><font size="2">85</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2"><b>North
        Africa</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Algeria</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1981</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">29</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,225</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">760</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Onshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Egypt</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1954</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">40</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">12,429</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">1,881</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">34</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">27</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Libya</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1959</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">21,268</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,053</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Tunisia</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1961</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">3,784</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">1,888</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">5</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>87</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>40,706</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,582</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>73</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>51</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2"><b>West
        Africa</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Angola</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1980</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,651</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">715</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">37</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Congo</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1968</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">17</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">6,240</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">741</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">16</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Nigeria</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1962</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,771</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,878</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">119</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">128</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>124</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2"><b>15,662</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>6,334</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>167</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>173</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2"><b>North Sea</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Norway</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1965</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">7,086</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">316</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">13</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">the
        United Kingdom</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1964</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,518</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">665</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>105</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2"><b>8,604</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>981</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>40</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>29</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2"><b>Rest of
        World</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Australia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">2001</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16,968</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,643</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">China</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1983</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">218</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">106</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">4</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Croatia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1996</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,028</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">988</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Ecuador</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1988</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">2,000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">2,000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Onshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Indonesia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">2001</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16,408</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">984</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Iran</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1957</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">423</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">423</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Kazakhstan</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1995</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">879</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">455</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Pakistan</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">2000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">8,050</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">635</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Onshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Trinidad &amp; Tobago</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1970</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">United
        States</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="2">1968</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">299</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">2,240</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">373</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2">5</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Venezuela</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">1998</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">713</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">131</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Onshore/Offshore</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>358</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2"><b>50,993</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>7,804</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>52</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>33</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,280</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,112</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2">Other
        countries with only exploration activity</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">83,299</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">705</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">200,544</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28,813</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">332</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">287</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="15%"><font size="2"><b>Total</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>919</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2"><b>234,180</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>41,997</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="2"><b>413</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="2"><b>372</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="2%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Square
        kilometers.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Divestment of proved and unproved property</i></b></p>
</blockquote>

<p>As part of the rationalization strategy relating to its asset
portfolio, aimed at increasing value by focusing on strategic
areas with good growth potential and divesting marginal assets,
Eni carried out the following agreements:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the sale of Eni&#146;s
        interests in Blocks T (Eni operator with an 88.74%
        interest) and B (Eni operator with an average 70.2%
        interest) located in the British section of the North Sea
        off the Scottish coast to Canadian Natural Resources Ltd,
        for euro 158 million. The T Block includes the Tiffany,
        Tony and Thelma producing fields, while the B Block
        includes the Balmoral, Stirling and Glamis fields;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the sale of the entire share
        capital of Stargas SpA (Eni&#146;s interest 100%) to Gas
        Plus for euro 139 million. Stargas assets include: (i) 42
        natural gas and condensate production concessions and 3
        exploration permits, located mainly in the production
        areas of Fornovo Taro, Montecorsaro, Lucera and Policoro
        in Central-Southern Italy; (ii) gas transmission and
        treatment infrastructure; (iii) real estate; and (iv)
        Eni&#146;s 81.63% interest in Reggente SpA;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the sale to the Russian
        company Lukoil for euro 114 million of Eni&#146;s stake
        (50%) in the joint venture LukAgip, holder of a 10%
        interest in the Shakh Deniz field under development in
        the Azeri Caspian Sea and some minority stakes in
        companies operating in the transport and sale of gas in
        Azerbaijan, as well as a 24% interest in the onshore
        Meleiha field, in Egypt, operated by Eni. LukAgip is now
        100% owned by Lukoil;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the sale of Eni&#146;s
        interest in the Markham and JC3 gas fields located in the
        Southern section of the North Sea to CH4 Energy Ltd for
        euro 39 million;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the sale of Eni&#146;s
        proved and unproved property in Gabon consisting of its
        interests in the offshore Limande oil field (Eni operator
        with an 80% interest) and in three offshore exploration
        permits M&#146;Polo, Chaillu and Meboun (Eni operator
        with a 50% interest) to the independent oil company
        Perenco for euro 23 million;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the sale of exploration
        permits in Mauritania and marginal interests located
        offshore in the Gulf of Mexico.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>The transactions described above entailed proceeds of euro 548
million.</p>

<p>Eni&#146;s principal regions of operations are described
below. In the discussion that follows references to hydrocarbon
production are to be intended to be hydrocarbon production
available for sale.</p>

<blockquote>
    <p><i>Italy</i></p>
</blockquote>

<p>In 2004, Eni&#146;s hydrocarbon production in Italy totalled
266 KBOE/d and represented 17% of Eni&#146;s total production.
Eni&#146;s exploration and development interests in Italy are
concentrated in the Adriatic Sea, the Central Southern Apennines,
Sicily and the Sicilian offshore and the Po Valley. Natural gas
production available for sale averaged 1,067 mmCF/d and
represented approximately 70% of Eni&#146;s hydrocarbon
production in Italy. Eni&#146;s principal natural gas fields are
located in the Adriatic Sea (Barbara, Angela/Angelina, Porto
Garibaldi/Agostino, Cervia/Arianna, Porto Corsini, Regina and
Bonaccia, which collectively accounted for 54% of Eni&#146;s
natural gas production in Italy in 2004) and in the Ionian Sea
(Luna, which accounted for 9%).</p>

<p>Production of oil in Italy averaged 80 KBBL/d. Eni&#146;s
three major oil fields, Val d&#146;Agri in Southern Italy,
Villafortuna in the Po Valley and Gela in Sicily, represented 75%
of Eni&#146;s total oil production in Italy in 2004. Other oil
fields are Aquila in the Adriatic offshore of Southern Italy,
Rospo in the Adriatic Sea, Prezioso and Vega offshore Southern
Sicily, and Giaurone and Ragusa in Sicily.</p>

<p>Exploration activities onshore yielded positive results with
the following wells operated by Eni: (i) Civita 1 Dir (Eni&#146;s
interest 70%), a gas bearing well located in the Civita
concession in Central Italy; (ii) Tresauro 1 Dir (Eni&#146;s
interest 45%) in the Tresauro concession in Sicily containing
oil; (iii) Monte dell&#146;Aquila 1 Dir (Eni&#146;s interest
100%) in the Bronte S. Nicola concession in Sicily containing gas
and condensates; and (iv) the non-operated Monte Guzzo 1 Dir
well, in the Montegranaro concession (Eni&#146;s interest 25%)
containing gas in Central Italy.</p>

<p>Two significant seismic acquisitions were made in the Sicily
Channel in the area of the Panda field for a total area of 800
square kilometers and in North-Western Sicily in the
Casteltermini permit for a total area of 200 square kilometers.</p>

<p>In the Val d&#146;Agri the fourth treatment train of the oil
center was started-up and three new wells are being drilled,
bringing the number of existing wells to 33 (19 of these are in
production). Production is expected to peak at 73 KBOE/d net to
Eni in 2006.</p>

<p>The Ministry of Productive Activities awarded to Eni the Casa
Schillaci concession (Eni&#146;s interest 100%) where the Pizzo
Tamburino gas and liquids field was discovered. An EPC contract
is being awarded for the development of the field, with start-up
expected in 2005 and an estimated peak production of 1.2 KBOE/d
in 2006.</p>

<p>In the Villafortuna/Trecate field (Eni&#146;s interest 100%)
the Villafortuna 1 bis Dir well was drilled for the recovery of
residual reserves. </p>

<p>Production maintenance actions were performed on the offshore
Barbara E-G, Emilio and Agostino (Eni&#146;s interest 100%) and
Regina (Eni operator with a 75% interest) fields through the
drilling of infilling wells and sidetrack activities, increasing
production by about 141 mmCF/d.</p>

<p>During 2004 development resumed at the Naide field with the
installation of a platform, the laying of pipe linking it with
Cervia and the drilling of a development well.</p>

<p>As part of the portfolio rationalization process, in May 2004
Eni sold its subsidiary Stargas SpA which owned proved and
unproved property and whose production in 2003 averaged about 5
KBOE/d, consisting mainly of natural gas.</p>

<blockquote>
    <p><i>North Africa</i></p>
</blockquote>

<p>Eni&#146;s operations in North Africa are conducted in
Algeria, Egypt, Libya and Tunisia. In 2004, North Africa
accounted for 23% of Eni&#146;s total worldwide production of
hydrocarbons.</p>

<p><i>Algeria</i> Eni has been present in Algeria since 1981. In
2004, Eni&#146;s oil production averaged 66 KBBL/d.</p>

<p>The principal oil producing fields operated by Eni are located
in the Bir Rebaa area in the South-Eastern desert and include:
(i) BRN, BRW, BRSW, HBN, ROM, ZEK, ZEA and ROME (Eni&#146;s share
between 50%-100%), which accounted for approximately 48% of
Eni&#146;s production in 2004 in Algeria; and (ii) ROD and
satellites (Eni operator of the production phase with a 63.96%
interest). Other interests held by Eni are HBNS (Eni&#146;s
interest 12.25%) and Ourhoud (Eni&#146;s interest 4.59%), which
in 2004 accounted for approximately 39% of Eni&#146;s production
in Algeria.</p>

<p>In 2004, in Block P 404 area B (Eni&#146;s interest 25%) in
the Berkine North East area, near the Ourhoud field, the BKNE-B-2
appraisal well confirmed the presence of hydrocarbons at a depth
of about 3,000 meters.</p>

<p>In October 2004 production of the ROD and satellites oilfields
in early production in the Bir Rebaa oil center started with a
flow of 8 KBBL/d. These fields are located in Blocks 401a/402a
and 403a/403d. Production was initially treated at existing
facilities. In December 2004 a dedicated treatment plant started
operations. When completed, this facility is expected to have a
capacity of 80 KBBL/d and production net to Eni is expected to
reach a 28 KBBL/d peak in 2005.</p>

<p>In December 2004 the REC field located near the Bir Rebaa oil
center started production at an initial level of over 2 KBBL/d
net to Eni.</p>

<p><i>Egypt</i> Eni has been present in Egypt since 1954. In
2004, fields operated by Eni with a production level of 472
KBOE/d (194 KBOE/d net to Eni) accounted for 40% of Egypt&#146;s
total annual hydrocarbon production.</p>

<p>In 2004, oil and condensate production averaged 94 KBBL/d net
to Eni and came mainly from the Eni operated Belayim and Ashrafi
fields in the Gulf of Suez, which covered 83% of Eni&#146;s crude
oil production in Egypt.</p>

<p>In 2004, natural gas production available for sale averaged
579 mmCF/d net to Eni. The main natural gas producing interests
operated by Eni are concentrated in the Nile Delta &#150; onshore
the Abu Madi and el Qar&#146;a interests and in the Mediterranean
offshore, the North Port Said (former Port Fouad), Baltim, Ras el
Barr and el Temsah interests. Production from these concessions
covered over 95% of Eni&#146;s natural gas production in Egypt.</p>

<p>In 2004, exploration produced positive results in the
following concessions: (i) Sinai 12 leases (Eni&#146;s interest
50%) located offshore in the Gulf of Suez, where the BMW-1
exploration well found four oil mineralized levels and was linked
to existing production facilities; (ii) Ras el Barr (Eni&#146;s
interest 25%) located offshore in the Nile Delta, where the
Taurt-1 and Taurt-2 exploration wells found gas mineralized
levels; and (iii) Ashrafi (Eni&#146;s interest 50%) located in
the Gulf of Suez where the Ashrafi H 1X Dir and Ashrafi J-1X Dir
showed oil mineralized levels. The first well was linked to
existing production facilities. In the Port Fouad concession
(Eni&#146;s interest 50%) two gas discoveries were made with the
Anshuga 1 and Gambari 1 wells.</p>

<p>In 2004, Eni was assigned three new areas in the Delta (Blocks
32, 24 and 26) and one in the Western Desert (Block 10).</p>

<p>Development activities are ongoing in the natural gas fields
located in the following concessions in the Nile Delta offshore:
(i) North Port Said (Eni&#146;s interest 50%) where the Nouras A
and Nouras B fields started production. Construction work
continued at the Barboni development platform and for the
extension of the El Gamil terminal. In 2004, production of gas
increased from 247 to 350 mmCF/d net to Eni; (ii) Baltim
(Eni&#146;s interest 25%) where work continued for the
installation of the Baltim North platform and relevant onshore
facilities at Abu Madi, whose completion is expected by the end
of 2005 in order to reach the contract production level of 212
mmCF/d (64 mmCF/d net to Eni); and (iii) El Temsah (Eni operator
with a 25% interest) where production is expected to start in the
first quarter of 2005 from the recently installed Temsah 4
platform, which will offset the production decline related to an
accident that occurred in August 2004 on the Temsah NW platform.
Further development activity is planned in this concession with
the objective to reach a peak production of 184 mmCF/d in 2007.</p>

<p>In December 2004, the LNG production plant at Damietta was
started-up. The plant (Eni&#146;s interest 40%) has a treatment
capacity of 268 BCF/year. Eni plans to supply 106 BCF/year of its
natural gas production volumes to this plant in the next 20
years. A second liquefaction train is planned to be installed at
the plant with the same capacity of the first train. Eni will
supply its production gas to this line as agreed in an intent
protocol signed with the Egyptian Government in March 2005.</p>

<p>In January 2005, the NGL plant in Port Said was started-up.
The plant (owned by UGDC &#150; Eni&#146;s interest 33%) has a
treatment capacity of 1,095 mmCF/d of natural gas and annual
production of 330,000 tonnes of propane, 432,000 tonnes of LPG
and 1.2 mmBBL of condensates.</p>

<p><i>Libya</i> Eni started operations in Libya in 1959 with oil
fields operated by Eni accounting for approximately 19% of
Libya&#146;s annual oil production.</p>

<p>In 2004, Eni&#146;s hydrocarbon production averaged 94 KBOE/d,
of these 95% was oil. The main oil fields operated by Eni are
Bu-Attifel (Eni&#146;s interest 50%) onshore in the
Central-Eastern desert and Bouri (Eni&#146;s interest 30%) in the
Mediterranean offshore facing Tripoli, which accounted for 73% of
Eni&#146;s production in Libya.</p>

<p>Joint development of the gas, oil and condensate fields of
Wafa, located in NC-169 A permit, 520 kilometers South-West of
Tripoli, and Bahr Essalam in the NC-41 permit, located in the
Mediterranean offshore, 110 kilometers North of Tripoli, is
underway. Eni is partner of the development with a 50% interest.
Within the development of the Wafa field 24 of the 30 planned
producing wells have been completed, as well as the condensate
treatment plant and the laying of the pipeline for the
transmission of liquids and gas to the Mellitah treatment plant.
In September 2004 the first gas shipments were made for the
Greenstream gasline and the first shipments of liquids for the
Mellitah plant. Within the development of the Bahr Essalam
offshore field, 17 producing wells of the 27 planned were
completed and, the Sabratha platform is nearing completion along
with the laying of the underwater pipeline for the transmission
of liquids and gas to the Mellitah treatment plant. Production is
expected to start in the second half of 2005. Peak production
from the two fields at 240 KBOE/d (124 KBOE/d net to Eni) is
expected in 2006. Eni expects its share of capital expenditure
for this project to amount to approximately euro 3.1 billion for
the upstream phase alone.</p>

<p>Supply in Italy of natural gas through the underwater
Greenstream gasline linking Mellitah to Gela in Sicily started on
October 1, 2004. When fully operational the gasline will allow
the export and sale to third parties 283 of 353 BCF/year of
natural gas produced from these two fields (see &quot;Gas &amp;
Power&quot;).</p>

<p>Early production was started in January 2004 at the Elephant
(el Feel) oil field in the NC-174 onshore permit (Eni operator
with a 33.33% interest) at 6 KBBL/d net to Eni. The development
of this field aims at reaching peak production of 150 KBBL/d (27
KBBL/d net to Eni) in 2007. Production will be delivered to the
Mellitah terminal through a 725-kilometer long pipeline with a
30-inch diameter, currently under construction.</p>

<p>In the medium term, according to management&#146;s plans, the
reaching of full production of fields under development will lead
to a significant increase in Eni&#146;s hydrocarbon production in
Libya from current levels.</p>

<blockquote>
    <p><i>West Africa</i></p>
</blockquote>

<p>Eni&#146;s operations in West Africa are conducted in Angola,
Congo and Nigeria. In 2004, West Africa accounted for 20% of
Eni&#146;s total worldwide production of hydrocarbons.</p>

<p><i>Angola </i>Eni has been present in Angola since 1980. In
2004, Eni&#146;s oil production averaged 78 KBBL/d. Eni&#146;s
main oil producing fields are located in Block 0 in 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 Takula, Nemba and Malongo, which in 2004 accounted
for approximately 50% of Eni&#146;s production in Angola.</p>

<p>The national oil company Sonangol renewed the exploration
license for Block 14 until March 1, 2007, based on a new
exploration program. The exploration license for offshore Block
0-former Cabinda (Eni&#146;s interest 9.8%) was renewed until
December 31, 2030.</p>

<p>In Block 14K/A-IMI (Eni&#146;s interest 10%), deriving from
the unitization of areas formerly belonging to Block 14 and to
Block Haute Mer (Congo), the Lianzi 1 well yielded 12 KBBL/d of
high quality oil in test production.</p>

<p>In area B of Block 0 in January 2005 production started at the
Bomboco oil field, while development is underway at the North
Sanha field, which will produce condensates and LPG, and is
expected to start-up in the second quarter of 2005. Peak
production is expected at 100 KBBL/d (11 KBBL/d net to Eni) in
2007.</p>

<p>The main field in the deep waters of Block 14 is Kuito, which
in 2004 produced approximately 57 KBBL/d (10 KBBL/d net to Eni).
In this block development is underway of the Benguela/Belize and
Lobito/Tomboco oil fields. The project provides for two phases;
the first one between 2005 and 2006 for the development of the
Benguela/Belize fields by means of the installation of a
Compliant Piled Tower (CPT) at a depth of 400 meters and the
second one between 2006 and 2007 for the development of the
Lobito/Tomboco fields through the drilling of underwater wells
and their linkage to the production facilities of the CPT. A
total of 52 development wells will be drilled (31 producing and
21 water injection wells). Production is scheduled to start in
2006 by means of the Kuito FPSO vessel, reaching a peak of 34
KBBL/d net to Eni in 2008. Eni expects its share of capital
expenditure for this project to amount approximately to dollar
440 million.</p>

<p>In August 2004 the Hungo and Chocalho oil fields started
production as part of Phase A of the development project of
fields discovered in the area called Kizomba in Block 15
(Eni&#146;s interest 20%) in the Angolan offshore at a water
depth of about 1,500 meters. A total of 59 wells will be drilled
and completed by an underwater system connected to a Tension Leg
Platform linked to an FPSO vessel with a treatment capacity of
250 KBBL/d. Production is expected to peak at 43 KBBL/d net to
Eni by 2006.</p>

<p>In this same area Phase B is underway under a project scheme
similar to that of Phase A, aimed at the development of the
Kissanje and Dikanza oil fields. Production is expected to start
in the fourth quarter of 2005 and to peak at 250 KBBL/d (43
KBBL/d net to Eni) by 2007. Eni expects its share of capital
expenditure for this project to amount to approximately dollar
700 million.</p>

<p>In Block 15 in 2004, the Mondo project was approved as part of
Phase C of the development of the Kizomba area fields. Production
is expected to start in 2007 and to peak at 125 KBBL/d (18 KBBL/d
net to Eni) by 2008. Eni expects its share of capital expenditure
for this project to amount to approximately dollar 300 million.</p>

<p>In the medium term, according to management&#146;s plans, the
reaching of full production of fields started-up in 2004 and the
contribution of new development projects will allow Eni&#146;s
production in Angola to increase significantly from current
levels.</p>

<p><i>Congo</i> Eni has been present in Congo since 1968 and is
the second largest international oil producer, with oil fields
operated by Eni accounting for 34% of Congo&#146;s total oil
production in 2004 (72 KBBL/d net to Eni). Eni&#146;s principal
oil producing interests operated in Congo are located in the
offshore facing Pointe Noire and include: the Zatchi, Foukanda,
Mwafi and Djambala fields (Eni&#146;s interest 65%), the Loango
field (Eni&#146;s interest 50%) and the Kitina field (Eni&#146;s
interest 35.75%), which together accounted for approximately 60%
of Eni&#146;s production in Congo in 2004. Other fields are
Pointe Noire Grand Fond and Pex (Eni&#146;s interest 35%,) which
accounted for approximately 40% of Eni&#146;s production in Congo
in 2004.</p>

<p>In February 2004 an oil discovery was made in the Mer Tr&#232;s
Profonde Sud permit (Eni&#146;s interest 30%) with the Pegase
Nord Marine 1 exploration well, which yielded 14 KBBL/d in test
production from four mineralized levels.</p>

<p><i>Nigeria</i> Eni has been present in Nigeria since 1962. In
2004, Eni&#146;s hydrocarbon production averaged 158 KBOE/d and
accounted for approximately 10% of Nigeria&#146;s hydrocarbon
production.</p>

<p>In 2004, exploration gave positive results, four discoveries
were made in onshore production areas in the OML 60/61/62/63
permits (Eni operator with a 20% interest) with the Osiama Creek
South 1 Dir and 2 Dir, Obutoru Creek 1 Dir ST1 and Obiafu 34
wells all containing mainly oil. Two discoveries were made in
conventional offshore areas: (i) in the OML 74 permit (Eni&#146;s
interest 12.86%) with the JKG1-X well containing oil and gas;
(ii) in the OML 116 permit with the Agbara Deep 1 Dir ST1 Appr. A
well which found deep levels mineralized with gas and
condensates.</p>

<p>Eni&#146;s principal producing fields in Nigeria are located
in: (i) four onshore Blocks (OML 60/61/62/63) in the Niger Delta
(Eni&#146;s interest 20%), which in 2004 accounted for 22% of
Eni&#146;s production in Nigeria; (ii) the offshore OML 125 Block
(Eni&#146;s interest 50.19%), where the Abo field is located,
which produced over 13 KBBL/d net to Eni in 2004. The development
of other levels of the Abo field is expected to allow Eni to
achieve a production peak of 45 KBBL/d (18 KBBL/d net to Eni) in
2007; and (iii) the offshore OML 119 Block (former OPL 91),
operated through a service contract, where the Okono and Okpoho
oil fields are located.</p>

<p>Eni also holds a 5% interest in NASE, the largest oil joint
venture in the country relating to 36 onshore blocks. The major
development projects underway are Cawthorne Channel and
Forcados/Yokri, which involve drilling infilling wells in
producing fields and expanding existing production facilities.
Natural gas production commenced at Cawthorne Channel in March
2005 (134 mmCF/d), at Forcados/Yokri in October 2004 (81 mmCF/d).
Natural gas from the two fields is destined for the Bonny
liquefaction plant. Oil production from the two fields is
expected to peak at 90 KBBL/d of oil (5 KBBL/d net to Eni) in
2006.</p>

<p>Development initiatives are ongoing in the OML 60 and 61
permits (Eni operator with a 20% interest) for guaranteeing
natural gas supplies to the six trains of the Bonny liquefaction
plant (three already operating, two with start-up expected in
2005), which will bring the completed plant to a production
capacity of 936 BCF/year of LNG in 2007 (Eni&#146;s interest
10.4%, see &quot;Gas &amp; Power - Development Projects&quot;).
When the plant is in full operation, Eni will supply 254 mmCF/d
of its production volumes of natural gas.</p>

<p>The Kwale-Okpai combined cycle power station (Eni&#146;s
interest 20%) started operations in April 2005, with a generation
capacity of 480 megawatts on two turbogenerators. The power
station is fed with gas from the Kwale fields in Block OML 60
(Eni operator with a 20% interest) which will supply up to 71
mmCF/d of natural gas when the power station is fully
operational.</p>

<p>Eni holds a 12.5% interest in the Bonga oil field located in
offshore Block OML 118 at a water depth between 950 and 1,150
meters, where development is underway. Exploration, still
underway, was successful with the Bonga West well that found
various mineralized levels and with the Bonga N 1X well.
Production is expected to start in late 2005, with a peak flow of
190 KBBL/d (21 KBBL/d net to Eni) in 2007. Eni expects its share
of capital expenditure for this project to amount to
approximately dollar 300 million.</p>

<p>In the offshore OML 119 permit (Eni operator of the service
contract), in January 2004 the FPSO Mystras started operations.
Drilling, connection and production start-up of the Okpoho
platform was completed. Production from the Okono and Okpoho oil
fields amounted to about 55 KBBL/d (27 KBBL/d net to Eni) in
2004.</p>

<p>According to management's plants, in the medium term, the
development initiatives underway will lead to a significant
increase over current levels in Eni&#146;s production in Nigeria.</p>

<blockquote>
    <p><i>North Sea</i></p>
</blockquote>

<p>Eni&#146;s operations in the North Sea area are conducted in
Norway and the United Kingdom. In 2004, the North Sea accounted
for 19% of Eni&#146;s total worldwide production of hydrocarbons.</p>

<p><i>Norway</i> Eni has been operating in Norway since 1964. In
2004 Eni&#146;s hydrocarbon production averaged 141 KBOE/d.
Eni&#146;s principal producing interests are the Ekofisk field
(Eni's interest 12.39%) in the North Sea, and the Aasgard (Eni's
interest 14.9%) and Norne (Eni's interest 6.9%) fields in the
Norwegian Sea which together accounted for 85% of Eni&#146;s
production in Norway in 2004.</p>

<p>Eni is operator with interests ranging from 20% to 70% in 9
licenses. In the Barents Sea Eni holds interests in 30 licenses
with interests varying from 5 to 50% and is operator of the PL
201 and PL 229 permits (with Eni's interests of 67% and 65%,
respectively), where the Goliath field was discovered in 2000.</p>

<p>In 2004 in the PL 128 permit (Eni&#146;s interest 11.5%),
exploration activities led to the drilling of the Linerle well
containing oil.</p>

<p>In June 2004 Eni was awarded four exploration licenses (PL324,
PL329, PL325 and PL323) in the Norwegian Sea, the latter two as
operator with a 40% interest. In Eni&#146;s view, these licenses
have great mineral potential and represent a new opportunity to
strengthen its strategic position in Norway.</p>

<p>Development of the Kristin gas and oil field (Eni&#146;s
interest 9%) located in the PL134 permit in the Haltenbanken area
in the Norwegian Sea continued in 2004. The development plan
foresees the drilling of 12 underwater wells, the installation of
a semi-submersible platform with treatment facilities and the
laying of a gas pipeline connecting it with the Aasgard Transport
Pipeline, 10 kilometers from Kristin, and of a 20-kilometer long
oil pipeline to carry condensates to the Aasgard C storage
vessel. Production from Kristin is expected to start in October
2005 and to peak at 211 KBOE/d (19 KBOE/d net to Eni) in 2006.
Eni expects its share of capital expenditure for this project to
amount to approximately dollar 256 million.</p>

<p>In the PL128 permit (Eni&#146;s interest 11.5%) development is
underway of the (mainly oil) Svale and Staer fields. Their
proximity to the Norne production and transport infrastructure
(Eni&#146;s interest 6.9%) allows for synergies. Production is
expected to start in late 2005 and to peak at 6 KBBL/d net to Eni
in 2006.</p>

<p><i>The United Kingdom</i> Eni has been present in the United
Kingdom since 1964. In 2004 Eni&#146;s production of hydrocarbons
averaged 159 KBOE/d.</p>

<p>Eni&#146;s principal producing interests in the United Kingdom
are Elgin/Franklin (Eni&#146;s interest 21.87%), MacCulloch
(Eni&#146;s interest 40%), fields located in the Liverpool Bay
(Eni&#146;s interest 53.9%) and J-Block (Eni&#146;s interest
33%). In 2004 these fields accounted for 71% of Eni&#146;s
production in the United Kingdom.</p>

<p>Eni holds interests in various exploration licenses in the
deep offshore. In Block 206/1 (Eni&#146;s interest 20%) located
West of Shetland, the appraisal campaign was successfully
completed with the gas and condensate Laggan discovery, where two
appraisal wells were drilled in water depths of 600 meters. In
September 2004, the well 2006/4AZ was tested at 37.8 mmCF/d of
gas. Information gathered is presently being analyzed and will be
integrated into the necessary studies for the final decision for
the development of Laggan.</p>

<p>Within the rationalization process of Eni&#146;s asset
portfolio in the North Sea following the purchase of
British-Borneo and Lasmo, Eni sold its interests in the T-Block
(Eni operator with an 88.87% interest) which contains the Thelma,
Tiffany and Tony oil fields, and in the B-Block (Eni operator
with an average interest of 60%), where the Balmoral, Glamis and
Stirling oil fields are located, as well as its interest in the
Markham gas field (Eni operator with a 37.53% interest) offshore
the Netherlands.</p>

<blockquote>
    <p><i>Rest of the World</i></p>
</blockquote>

<p>In 2004, Eni&#146;s operations in the rest of the world
accounted for 21% of its total worldwide production of
hydrocarbons.</p>

<p>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 license (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 desalinization
and as 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.</p>

<p><i>Australia</i> Eni has been present in Australia since 2000.
In 2004, Eni&#146;s hydrocarbon production averaged 20 KBOE/d
mainly of oil.</p>

<p>Eni holds interests in 9 exploration licenses in the
North-Western offshore, in seven of which it is operator with
interests ranging from 65% to 100%. Three of these licenses are
located in the Timor Sea (WA-280-P, AC/P-21 and TP-22), and four
in the Western offshore (WA-326-P, WA-328-P, WA-25-L and
WA-22-L).</p>

<p>In June 2004 in the WA-25-L permit (Eni is operator with a 65%
interest) near the WA-234-P permit where the Woollybutt field is
located, drilling of the Scallybutt-1 appraisal well started and
identified hydrocarbon reserves on the Western side of
Woollybutt. Evaluations are underway for defining the amount of
additional reserves present.</p>

<p>In February 2004 production started from the offshore gas and
liquid Bayu Undan field (Eni&#146;s interest 12.04%) located in
the Zoca 91/12-13 Block in the international cooperation area
between Australia and East Timor, at a water depth of 80 meters.
In 2004, the field produced about 6 KBBL/d net to Eni. Production
is scheduled to peak at about 160 KBBL/d (18 KBBL/d net to Eni)
in 2009. The project includes two phases. The first phase,
started in February 2004, for the development of liquids and the
second phase, excepted to commence late in 2006 for the
development of LNG. In phase one three production and treatment
platforms, relevant facilities and an FSO vessel for the storage
of liquids have been installed. The second phase entails the
construction of a 26-inch diameter 500 kilometer long sealine
that will link the field to Darwin, where an onshore LNG plant
with a 3.5 million tonnes/year capacity is under construction.
Under a 17-year long contract, gas produced will be sold to two
Japanese companies, Tokyo Electric and Tokyo Gas, that bought a
10.08% interest in the integrated project. LNG production is
scheduled to commence in the first quarter of 2006. Eni expects
its share of capital expenditure for this project to amount to
approximately dollar 256 million.</p>

<p><i>Azerbaijan </i>As part of its asset rationalization
program, in 2004, Eni divested all its interests in proved and
unproved property held in Azerbaijan. Eni still retains a 5%
interest in the Baku-Tblisi-Ceyhan pipeline (BTC) corresponding
to a right to transport up to 50 KBBL/d of crude oil.</p>

<p><i>Croatia </i>Eni, through a 50/50 joint venture with INA,
the national Croatian company, operates the Ivana natural gas
field, located 40 kilometers West of Pola in the Adriatic
offshore in approximately 40 meter deep waters. The field is
operated through a main production platform, called Ivana A, and
three satellite platforms, Ivana B, D and E.</p>

<p>In November 2004 the Marica field started production at 2
KBOE/d net to Eni. In the medium term the reaching of full
production at Marica and the development of other fields
discovered in the area &#150; Ivana C/K, Ika, Ida, Katarina and
Annamaria &#150; are expected to increase Eni&#146;s current
production level of 6 KBOE/d, until reaching a peak production of
10 KBOE /d net to Eni in 2007.</p>

<p><i>Indonesia </i>Eni has been present in Indonesia since 2000.
In 2004, hydrocarbon production net to Eni averaged 29 KBOE/d.
Eni&#146;s producing interests are located in the onshore area in
East Kalimantan (Borneo) regulated by the Sanga Sanga PSA
(Eni&#146;s interest 37.81%) operated by Virginia Indonesia Co,
in which Eni holds a 50% interest. This area produces mainly
natural gas (about 80%). 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.</p>

<p>Eni&#146;s exploration activities in Indonesia focus on the
deep offshore of East Kalimantan (Borneo). Eni holds interests in
8 exploration permits with interests ranging from 20% to 50%
(Ganal, Rapak, Popodi, Papalang, Muara Bakau, Ambalat and Bukat),
and 100% in the Bulungan Block in the Tarakan basin. Eni is
operator of Muara Bakau, Ambalat, Bukat and Bulungan located in
the Kutei and Tarakan oil basins.</p>

<p>In the Ganal exploration area (Eni&#146;s interest 20%) in the
Kutei basin, the Gehem-2 and Gehem-3 exploration wells, drilled
to a total depth of 5,360 and 5,000 meters, respectively,
confirmed the extension of the gas and condensates bearing strata
already identified by the previous well Gehem-1 and identified a
new oil bearing area. According to the development plan, gas
produced will be sent to the Bontang liquefaction plant. This
project is the first step of the Kutei Master Plan for the
integrated development of all discoveries in the area (including
Gehem, Gada, Gula and Ranggas).</p>

<p>Appraisal activities on the Gula discovery had a positive
outcome. The exploration well Gula-3 drilled at a depth of 5,335
meters allowed identification of further gas bearing strata.</p>

<p>In the Bukat permit in Tarakan, Eni as operator made an oil
and gas discovery currently under evaluation.</p>

<p><i>Iran</i> Eni has been present in Iran since 1957. In 2004,
liquid production net to Eni averaged 9 KBBL/d. The main
producing oil fields operated by Eni under buy back contracts are
South Pars phases 4 and 5 (Eni operator with a 60% interest) in
the offshore of the Persian Gulf and Darquain (Eni operator with
a 60% interest) onshore. Eni also holds interests in the Dorood
(45%) and Balal (38%) fields in the offshore of the Persian Gulf.</p>

<p>In October 2004 production of the natural gas and condensate
South Pars field phases 4 and 5 commenced. The project provides
for: (i) the drilling of 24 wells; (ii) the installation of two
offshore platforms in waters about 70 meters deep and of
facilities for transporting the raw gas onshore; and (iii) the
construction of an onshore gas center at Assaluyeh for the
separation of ethane, propane, butane and condensates.</p>

<p>The contract provides that the field&#146;s liquid production
be used to compensate costs incurred and to provide return on
invested capital.</p>

<p>At the end of 2004 production amounted to over 706 mmCF/d of
natural gas and is expected to reach 706 BCF/year of gas and,
after the separation, one million tonnes/year of propane and
butane and 80 KBBL/d of condensates. In December production of
liquids started with about 30 KBBL/d net to Eni. A production
peak of 53 KBBL/d net to Eni is expected in 2008.</p>

<p>Development continued at the Darquain oil field (Eni operator
with a 60% interest) located onshore about 50 kilometers
North-East of Abadan. The first phase was completed with the
drilling of 8 wells, the construction of an oil center with
relevant facilities and meeting the production target set at 50
KBBL/d (about 4 KBBL/d net to Eni). The second development phase
providing for the drilling of 19 additional wells and the
expansion of the oil center capacity to 165 KBBL/d by means of
gas injection was started. A production peak of approximately 17
KBBL/d net to Eni is expected in 2007.</p>

<p>The development of the Dorood oilfield (Eni&#146;s interest
45%) near the Kharg island continued. The completion of drilling
is expected in 2006. Production is expected to peak at 85 KBBL/d
(10 KBBL/d net to Eni) at the end of 2005.</p>

<p><i>Kazakhstan</i> Eni has been present in Kazakhstan since
1992. Eni, with an 18.52% interest, is operator for a consortium
of six international oil companies and the national Kazakh
company Kazmunaygaz (KMG) under the North Caspian Sea. The
consortium changed its structure in March 2005 when British Gas
left the project. The remaining members exercised their
pre-emptive right and acquired British Gas&#146;s interest
(16.67%) in proportional shares and sold half of this newly
acquired interest to KMG now new partner of the PSA. The
consortium is involved in the exploration and production of
hydrocarbons in the offshore area where the Kashagan field was
discovered; management considers this field to be the most
important discovery in the world in the past thirty years. On
February 25, 2004 the development plan for Kashagan was approved
by the Kazakh authorities. The plan will be implemented in
multiple phases. Production is expected to start in 2008 at an
initial level of 75 KBBL/d and to increase to 450 KBBL/d at the
end of the first development phase. Production plateau is
targeted at 1.2 mmBBL/d. Total capital expenditure is estimated
at dollar 29 billion (5.4 billion being Eni&#146;s share)
excluding the capital expenditure for the construction of the
infrastructure for exporting production to international markets,
for which various options are being considered by the consortium.
One of these options includes the laying of a pipeline connecting
Kashagan with the BTC pipeline, which is planned to start
operations late in 2005 (Eni&#146;s interest 5%). The development
of the field provides for the drilling of 280 wells and the
construction of platforms and artificial islands (hubs) which
will collect production from satellite islands. Oil and
non-reinjected gas will be treated in the hubs and delivered,
through two separate lines, to onshore treatment plants (located
at Eskene West, near Atyrau). The oil will be further stabilized
and purified; natural gas will be treated for the removal of
hydrogen sulfide and will be mostly used as fuel for the
production plants. The remaining amounts will be marketed. At
March 2005, within the first phase of the field&#146;s
development, contracts for a total of dollar 6.7 billion were
awarded for the construction of infrastructure for developing the
field and for offshore production (drilling, treatment and
reinjection of sour gas) and onshore treatment plants. The most
advanced techniques are going to be applied in the completion of
the project in order to cope with high pressures in the field and
the presence of hydrogen sulfide. In 2004, the exploration
campaign in the area of the North Caspian Sea PSA was completed
with the testing of the sixth and last commitment well Kairan-1.
The campaign had a 100% success rate. Appraisal activities of the
other discoveries made in the area (Kalamkas, Kashagan SW, Aktote
and Kairan) gave positive results with the Kashagan KE-6 and
Aktote AK-2 Dir wells.</p>

<p>Eni, with a 32.5% interest is co-operator with British Gas of
the Karachaganak project in a consortium composed of four
international oil companies. In 2004, production from this field
(net to Eni) averaged 54 KBBL/d of liquids and 195 mmCF/d of
natural gas. The development of the natural gas and condensate
field is organized by stages, in accordance with a Final
Production Sharing Agreement. On June 9, Eni made its first oil
shipment from Karachaganak to the Novorossiysk terminal on the
Russian coast of the Black Sea through the Caspian Pipeline
Consortium (in which Eni holds transport rights up to 3 million
tonnes/year). In the last months of 2004 production of liquids
reached 232 KBBL/d (70 KBBL/d net to Eni).</p>

<p><i>United States</i> Eni has been present in the United States
since 1966 and holds interests in more than 300 exploration
licenses, in particular as operator with interests varying from
30% to 100% in over 50 licenses in the Gulf of Mexico. In 2004,
Eni&#146;s hydrocarbon production averaged 43 KBOE/d. The main
producing fields operated by Eni are Allegheny (Eni&#146;s
interest 100%) Morpeth (Eni&#146;s interest 100%) and King Kong
(Eni&#146;s interest 50%), which accounted for 64% of Eni&#146;s
production in the United States in 2004.</p>

<p>A wide exploration campaign is ongoing that had a positive
outcome in 2004 with three new oil discoveries: the South
Allegheny (Eni operator with a 100% interest), North Black Widow
(Eni&#146;s interest 30%) and Ulysses (Eni&#146;s interest
29.375%) wells. Production is expected to start in 2005 using the
production facilities of the nearby Allegheny, Morpeth
(Eni&#146;s interest 100%) and Medusa (Eni&#146;s interest 25%)
fields, respectively.</p>

<p>Furthermore the appraisal wells in the St. Malo discovery
(Eni&#146;s interest 1.25%) and the Hadrian exploration well
(Eni&#146;s interest 25%) confirmed the presence of commercial
quantities of reserves of hydrocarbons.</p>

<p>Eni is operator in the development of the K2 oil field
(Eni&#146;s interest 18.17%) where production commenced in May
2005. A peak production of 32 KBBL/d (5 KBBL/d net to Eni) is
expected in late 2005.</p>

<p><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 2004,
production from this field averaged 67 KBBL/d net to Eni.
Drilling and workover interventions on producing wells are
planned for maintaining current production levels. Eni holds a
26% interest in the Corocoro oil field in the West Paria Gulf
block under development, located at the mouth of the Orinoco
river. Production is expected to start in 2007 with a peak of 14
KBBL/d net to Eni in 2008.</p>

<p>Eni holds interests in two exploration permits: Gulf of Paria
East (Eni&#146;s interest 30%) and Gulf of Paria West (Eni&#146;s
interest 40%), both in conventional waters. In 2004, two
hydrocarbon discoveries were made (Punta Sur and Tiburon) and an
evaluation plan is being prepared.</p>

<p style="page-break-before:always"><i>Pakistan</i> Eni has been
present in Pakistan since 2000. In 2004, production net to Eni
averaged 45 KBOE/d, mainly of natural gas. The main natural gas
producing fields operated by Eni are Bhit (Eni&#146;s interest
40%) and Kadanwari (Eni&#146;s interest 18.42%), which in 2004
accounted for 44% of Eni&#146;s production in Pakistan. Eni also
holds interests in the Sawan (23.68%), Zamzama (17.75%) and Miano
(15.16%) fields. In the first quarter of 2005 the Rehmat field
(Eni&#146;s interest 30%) was started-up.</p>

<p>Eni is operator in the Manchar (Eni&#146;s interest 55%) and
Gorakh (Eni&#146;s interest 92.5%) permits in the Kirthar
Foldbelt area and holds interests between 30% and 40% in four
exploration permits in the Middle Indus Basin. In February 2005,
two permits were acquired in the Indus offshore (Blocks M and N,
Eni&#146;s interest 100%).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Capital Expenditure</i></b></p>
</blockquote>

<p>See &quot;Item 5 &#150; Liquidity and Capital Resources &#150;
Capital Expenditure by Segment&quot;.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Storage</i></b></p>
</blockquote>

<p>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.</p>

<p>Storage services are provided by Stogit through eight storage
fields located in Italy, based on ten storage concessions<a
href="#(6)"><sup>6</sup></a> vested by the Ministry of Productive
Activities.</p>

<p>In 2004, Stogit increased storage capacity and the share of
capacity used by third parties, which reached more than 50%. 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, the latter accounted
for 38% of total revenues in 2004.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%"><font size="2"><b>Storage</b></font></td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Available capacity:</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">-
        modulation and mineral </font></td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2">(billion cubic meters) </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.5</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;. share utilized by Eni </font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(%)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">-
        strategic </font></td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2">(billion cubic meters)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Total customers</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(No.)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">39</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">&nbsp;&nbsp;.
        modulation and upstream storage customers</font></td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="2">(No.)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">29</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="G&amp;P">Table of Contents</a></h5>

<p><font size="3"><b>Gas &amp; Power</b></font></p>

<p>Eni is engaged in the business of natural gas supply,
transport and sale mainly in Italy and in the rest of Europe. Eni
is also engaged in the business of electricity generation, which
is conducted in Italy.</p>

<p>Eni is pursuing the development of sales in the rest of Europe
and in the LNG business in order to compensate for lower growth
opportunities on the domestic market due to the limits imposed on
operators by the sector regulation. 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 consumption growth. Eni&#146;s marketing policy
will aim to achieve customer satisfaction by means of market
segmentation, the integration of marketing actions and structures
and the expansion and customization of services offered to
customers.</p>

<p>The development of sales on the European gas market will
leverage the competitive advantage of Eni&#146;s diversified
portfolio of supply contracts and extensive gas pipeline network,
which allows for the supply of natural gas from several sources,
as well as the long standing relationships with producing
countries. Eni intends to consolidate its presence in target
markets (Iberian Peninsula, Germany and Turkey) and develop sales
in markets with significant growth and profitability prospects
(in particular France and the United Kingdom).</p>

<p>Eni also intends to expand its presence in LNG in order to
increase the value of its own natural gas reserves in West and
North Africa, in the Far East and in Latin America. Eni intends
to participate in projects concerning natural gas liquefaction
and regasification.</p>

<p><i>The matters regarding future natural gas demand and sales
target 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></p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Demand for Natural Gas in Italy</i></b></p>
</blockquote>

<p>With consumption amounting to 80 billion cubic meters in 2004
(increasing by over 3% over 2003) Italy is the third largest
European market for natural gas after Great Britain and Germany.
In 2004, about 20% of natural gas requirements were met through
domestic production (including natural gas volumes withdrawn from
storage), while imports covered 80%.</p>

<p>Eni expects natural gas consumption in Italy to reach about 91
billion cubic meters in 2010, corresponding to an annual average
increase of about 2%.</p>

<p>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, due to its lower
investment cost, higher yields and reduced polluting emissions as
compared to other fuels. Demand is expected also to increase from
residential and commercial users, due to the increased use of
natural gas in residential space heating in households and
services, in large tertiary firms and as vehicle fuel.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Natural Gas Purchases</i></b></p>
</blockquote>

<p>In 2004, Eni&#146;s Gas &amp; Power Division supplied 76.72
billion cubic meters of natural gas, with a 5.56 billion cubic
meters increase over 2003, up 7.8%, related to higher volumes
purchased outside Italy (6.42 billion cubic meters), offset in
part by lower production volumes supplied in Italy (0.86 billion
cubic meters). Natural gas volumes supplied outside Italy (65.42
billion cubic meters) represented 85% of total supplies (83% in
2003).</p>

<p>Outside Italy increases concerned purchases from Russia for
Italy (up 1.70 billion cubic meters) partially due to the
reaching of full operation of the long-term supply contract
signed in 1996 with Gazexport, from Russia for Turkey (up 0.97
billion cubic meters) related to the supply contract with the
Turkish company Botas, and from Algeria, the Netherlands, Libya
and Norway (up 2.33, 1.04, 0.55 and 0.30 billion cubic meters,
respectively) for both the Italian and European markets. LNG
purchases from Algeria declined (0.71 billion cubic meters) due
to lower supplies from Sonatrach related to an accident occurred
in early 2004 at the Skikda liquefaction plant, which reduced its
treatment capacity.</p>

<p>In 2004, a total of 0.93 billion cubic meters of natural gas
were withdrawn from the storage sites of Stoccaggi Gas Italia SpA
(Eni&#146;s interest 100%) as compared to 0.84 billion cubic
meters in 2003.</p>

<p style="page-break-before:always">The table below sets forth
Eni&#146;s purchases of natural gas by source for the periods
indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Natural
        gas supplies</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="60%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(billion
        cubic meters)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Italy</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>13.64</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>14.62</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12.67</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12.16</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>11.30</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Russia for
        Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">21.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">19.51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">18.62</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">18.92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">20.62</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Russia for Turkey</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Algeria</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">21.56</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">18.39</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">16.35</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">16.53</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">18.86</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">The Netherlands</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.09</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.41</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8.45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Norway</font></td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.10</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4.83</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.44</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.74</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Croatia</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.31</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.68</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">The United
        Kingdom</font></td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.48</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.98</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.76</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Hungary</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.05</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.57</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Libya</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Algeria (LNG)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.01</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Others
        (LNG)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.30</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.72</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other supplies via gasline</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other
        supplies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.02</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.04</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.04</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Others outside Europe</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.94</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.96</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.96</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Outside
        Italy</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>54.32</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>51.89</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>55.40</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>59.00</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>65.42</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Total supplies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>67.96</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>66.51</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>68.07</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>71.16</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>76.72</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Withdrawals
        from (inputs to) storage</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(2.43</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(1.43</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">0.93</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Network losses and measurement differences</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(0.90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(0.92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(0.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(0.61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(0.52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Available
        for sale</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>64.63</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>65.72</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>66.14</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>71.39</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>77.13</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>In order to meet the medium and long-term demand for natural
gas, 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 16 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, the Netherlands 9.8,
Norway 6 and Nigeria LNG 1.5) by 2008. The average annual minimum
quantity (take-or-pay) is approximately 85% of said quantities.
Despite the fact that management plans to sell outside Italy the
increasing volumes of natural gas available under Eni&#146;s
take-or-pay contracts, the expected development of Italian demand
and supply of natural gas in the medium and long-term and the
evolution of regulations in this segment represent a risk element
in the management of take-or-pay contracts. See Item 5 &#150;
&quot;Contractual Obligations&quot;.</p>

<p>In 2003, Eni took about 540 million cubic meters less than its
total minimum offtake obligation; this lower offtake was
compensated for by higher offtake in 2004. Management believes
that Eni&#146;s fulfillment of obligations under take-or-pay
contracts in 2005 is not likely to be an issue based on trends in
natural gas sales in the first quarter of 2005 and expected
trends for the remainder of the year. See &quot;Item 5 &#150;
Recent Developments and Management Expectations of Operations.</p>

<p>In 2003, Eni and Gazexport (Gazprom) signed an agreement under
which Eni has 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 with the
European Commission, which concluded its examination of the
contract, relating to the previous territory destination clause
agreed between Eni and Gazexport (Gazprom). 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Natural Gas Sales in Italy and Europe</i></b></p>
</blockquote>

<p>In 2004, natural gas sales (84.45 billion cubic meters,
including own consumption and Eni&#146;s share of sales of
affiliates) increased by 6.12 billion cubic meters over 2003, up
7.8%, due mainly to higher sales in the rest of Europe (up 4.33
billion cubic meters).</p>

<p>In an increasingly competitive market, natural gas sales to
third parties in Italy (50.39 billion cubic meters) decreased by
0.47 billion cubic meters over 2003, down 0.9%, due mainly to a
decline in sales to wholesalers (down 1.18 billion cubic meters),
as well as the impact of warmer weather conditions, a decline in
sales to industries (down 0.78 billion cubic meters), and the
fact that in the fourth quarter part of sales (0.54 billion cubic
meters) to operators in these segments &#150; in particular
wholesalers &#150; were made in accordance with certain decisions
of the Antitrust Authority (so called gas release)<a href="#(7)"><sup>7</sup></a>.
See &quot;Regulation of the Italian Hydrocarbon Industry &#150;
Gas &amp; Power&quot; below. These declines were offset in part
by higher sales to thermoelectric users (up 0.89 billion cubic
meters).</p>

<p>Natural gas sales in the rest of Europe (21.87 billion cubic
meters) increased by 4.33 billion cubic meters (up 24.7%) due to
increases registered in (i) sales under long-term supply
contracts with Italian operators of the natural gas market (up
1.71 billion cubic meters), partly due to the start-up of
supplies from Libyan fields in the fourth quarter of 2004; (ii)
supplies to the Turkish market via the Blue Stream gasline (up
0.97 billion cubic meters); (iii) Spain (up 0.60 billion cubic
meters) related to increased supplies to the electric company
Iberdrola and to the start-up of supplies to Eni&#146;s affiliate
Uni&#243;n Fenosa Gas (Eni&#146;s interest 50%); (iv) Germany,
related to the start-up of supplies to Eni&#146;s affiliate GVS
(Eni&#146;s interest 50%) and to a German operator (overall 0.56
billion cubic meters); (v) the United Kingdom related to gas
marketing activities (up 0.27 billion cubic meters); and (vi)
France, related to the beginning of gas marketing activities (up
0.15 billion cubic meters).</p>

<p>Own consumption<a href="#(8)"><sup>8</sup></a> amounted to
3.70 billion cubic meters (1.90 billion cubic meters in 2003) and
concerned essentially supplies to EniPower (2.61 billion cubic
meters), to Polimeri Europa (0.34 billion cubic meters) and to
Eni&#146;s Refining &amp; Marketing segment (0.25 billion cubic
meters).</p>

<p>Sales of natural gas by Eni&#146;s affiliates (net to Eni and
net of Eni&#146;s supplies) amounted to 7.32 billion cubic
meters, increasing by 0.38 billion cubic meters over 2003, up
5.5%, and concerned: (i) GVS with 3.37 billion cubic meters; (ii)
Galp Energia (Eni&#146;s interest 33.34%) with 1.34 billion cubic
meters; and (iii) volumes of natural gas (1.48 billion cubic
meters) treated at the Nigeria LNG Ltd liquefaction plant
(Eni&#146;s interest 10.4%) in Nigeria, sold by Nigeria LNG Ltd
to US and European markets.</p>

<p>The table below sets forth Eni&#146;s sales of natural gas by
principal market for the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Natural
        gas sales</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="60%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(billion
        cubic meters)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Italy</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>57.82</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>56.74</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>50.43</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>50.86</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>50.39</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Wholesalers</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">20.68</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">21.09</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">17.02</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15.36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">14.18</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Gas release</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.54</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">End
        customers</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">37.14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">35.65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">33.41</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">35.50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">35.67</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Industrial users</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18.37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18.53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.39</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Thermoelectric
        users</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12.27</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12.21</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12.48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15.92</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Residential</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.36</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Rest
        of Europe </i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>3.90</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>6.05</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>12.77</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>17.54</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>21.87</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Outside Europe</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>0.91</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>0.93</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>0.92</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1.09</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1.17</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Total
        sales to third parties</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>62.63</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>63.72</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>64.12</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>69.49</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>73.43</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Own consumption</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.02</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.70</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Total
        sales to third parties and own consumption</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>64.63</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>65.72</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>66.14</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>71.39</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>77.13</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Sales of natural gas of Eni&#146;s affiliates
        (net to Eni)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>0.87</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1.38</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>2.40</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6.94</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7.32</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Europe</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.41</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.93</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.93</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6.23</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6.60</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Outside Europe</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.46</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.72</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Total
        sales of natural gas</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>65.50</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>67.10</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>68.54</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>78.33</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>84.45</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>The Italian Natural Gas Market</i></b></p>
</blockquote>

<p>The Italian natural gas market is made up of three main
segments: residential and commercial, industrial and
thermoelectric. Customers can be divided into three groups: (i)
high consumption final users directly linked to the national and
regional natural gas high pressure networks; (ii) final customers
such as residential and commercial users, hospitals, schools,
public utilities, small enterprises located in urban centers
supplied by wholesalers through low pressure networks; and (iii)
wholesalers (mainly local distribution companies and distributors
of natural gas for automotive use) purchasing natural gas to sell
it to final customers.</p>

<p>In 2004, Eni&#146;s natural gas sales to wholesalers amounted
to 14.18 billion cubic meters (down 7.7% over 2003).</p>

<p>In 2004, natural gas consumption in the Italian industrial
segment amounted to approximately 22.6 billion cubic meters (29%
of total final consumption), with a 3.5% increase over 2003. In
2004, Eni&#146;s sales of natural gas to industrial users
amounted to 12.39 billion cubic meters (down 5.9% over 2003).</p>

<p>In 2004, natural gas consumption in the Italian thermoelectric
segment amounted to approximately 28 billion cubic meters (35% of
total final consumption), with an approximately 9% increase over
2003. In 2004, Eni&#146;s sales of natural gas to thermoelectric
users amounted to 15.92 billion cubic meters (up 5.9% over 2003).</p>

<p>In 2004, natural gas consumption in the Italian residential
and commercial segment amounted to over 28 billion cubic meters
(36% of total final consumption), with a 1% decrease over 2003
due to the effect of warmer weather conditions. Following the
merger with Italgas Pi&#249; Eni manages directly over 5 million
residential customers and in 2004 Eni&#146;s sales in this
segment amounted to 7.3 billion cubic meters (up 0.8% over 2003).</p>

<p>Eni&#146;s commercial structure is organized by branches in
Italy in order to react promptly and efficiently to the
requirements of large and medium enterprises, thermoelectric
producers and wholesalers. Eni&#146;s marketing policy towards
clients of those segments provides for customized contractual
options including, among others, various price formulas and types
of indexations aimed at controlling price volatility, on the
basis of purchase needs of clients. Eni&#146;s commercial policy
leverages on: (i) a dedicated sales team; (ii) a contact center
business; (iii) a website providing new services of analysis and
monitoring of costs and gas offtake; and (iv) a portfolio of over
50 different kinds of technical assistance and consultancy
services.</p>

<p>As a consequence of the merger with Italgas Pi&#249; SpA, Eni
integrated its commercial structure with a network of channels
dedicated to households, public entities, the tertiary sector,
condominiums, and small enterprises: the traditional counters, a
network of contact centers, the website with an online
opportunity for managing one&#146;s contract and the network of
franchisors under the &quot;Assistenza Italgas Pi&#249;&quot; brand
name, that in 2004 were 150.</p>

<p>Customers are offered a wide range of services. Residential
users can contact the franchisor for supplies, installation and
ordinary and extraordinary maintenance of their heating systems,
while condominiums, public administrations and enterprises are
offered a turn-key service for all what concerns their heating
requirements.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Transmission, Dispatching and Regasification
    Activities</i></b></p>
</blockquote>

<p>Transmission, dispatching and regasification activities in
Italy are carried out by Snam Rete Gas, a company listed on the
Italian Stock Exchange (in which Eni holds a 50.07% interest).
Eni&#146;s primary transmission network was conferred to Snam
Rete Gas in July 2001 in implementation of Legislative Decree No.
164/2000 concerning the Italian natural gas market, which
provides for the separation of transmission, dispatching and
regasification activities from all other activities in the
natural gas segment. This Decree also establishes that transport
activity qualifies as a public concern activity and consequently
is regulated.</p>

<p>The Italian natural gas transmission system is made up of a
national pipeline network and a regional pipeline network for a
total length of 32,190 kilometers, of which 30,545 kilometers are
owned by Eni.</p>

<p>The Italian national transmission network is made up of high
pressure trunklines, mainly with a large diameter, which carry
natural gas from the entry points to the system &#150; import
lines, storage sites and main Italian natural gas fields &#150;
to the linking points with the regional transmission network. The
national network includes also some interregional lines reaching
important markets.</p>

<p>The regional transmission network is made up of the remaining
lines and allows the transmission of natural gas to industries,
power stations and local distribution companies of the various
local areas served.</p>

<p>At December 31, 2004 the national pipeline network owned by
Eni extended for 8,196 kilometers. Underground pipelines have a
maximum diameter 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.</p>

<p>The major pipelines interconnected with import trunklines that
are part of Eni&#146;s national network are:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for natural gas imported
        from Algeria and Libya:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">-</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">two lines with a 48/42-inch
        diameter, 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 and
        from Libya through the Gela-Enna pipeline and the
        underwater Greenstream gasline. The pipeline transmission
        capacity at the Mazara and Gela entry points is
        approximately 90 million cubic meters/d;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for natural gas imported
        from Russia:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">-</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">two lines with
        48/42/36/34-inch diameters extending for a total length
        of approximately 1,000 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/d. The pipeline is going to be upgraded by
        the laying of a third 264-kilometer long line (of which
        199 kilometers started operations at the end of 2004)
        with completion expected in late 2006;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">for natural gas imported
        from the Netherlands and Norway:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">-</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">two lines, with a 48/34-inch
        diameter, 301-kilometer long extending from the Italian
        border at Passo Gries (Verbania), point of connection
        with the Swiss network, to the node of Mortara, in the Po
        Valley. The pipeline transmission capacity amounts to
        57.5 million cubic meters/d.</td>
    </tr>
</table>

<p>In 2004, Eni&#146;s national network increased by 203
kilometers due to the entry into service of: (i) a new line
connecting Gela, entry point of the Greenstream gasline from
Libya, to the national network near Enna. The 36-inch diameter
pipe covers 66 kilometers and has a transport capacity of 25
million cubic meters/d; (ii) the completion of a 30-inch diameter
line connecting Pontremoli to Parma for the transmission of
natural gas from the Panigaglia regasification terminal to
Northern Italy (70 kilometers); (iii) a 32 kilometer line
upgrading the pipeline for importing natural gas from Russia; and
(iv) the sections from Palmi to Martirano and from Campochiaro to
Sulmona as part of the upgrade of the Transmed pipeline through a
third line for a total length of 53 kilometers.</p>

<p>Eni&#146;s regional transmission network is made up of pipes
with smaller diameter than the national lines for a total length
22,349 kilometers. These pipes carry natural gas at pressures
between 5 and 12 bars, between 12 and 24 bars and between 24 and
75 bars. In 2004, Eni&#146;s regional network increased by 222
kilometers due to the entry into service of new lines, upgrades
and of various connections to end users.</p>

<p>Eni&#146;s system is completed by: (i) 11 compressor stations
with a total power of 625 megawatts; and (ii) 5 marine terminals
linking underwater pipelines with the on-land network at Mazara
del Vallo, Messina and Gela in Sicily and Favazzina and Palmi in
Calabria.</p>

<p>The control room of the dispatching system is located in San
Donato Milanese and oversees and monitors the whole transmission
network in cooperation with peripheral units. In 2003, this
system obtained the ISO 9001-2000 certification. 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.</p>

<p>In addition to the international pipeline transmission system,
natural gas enters Eni&#146;s system also through the Panigaglia
(Liguria) LNG terminal, which receives LNG carried by tanker
ships. This terminal is currently the only one in Italy and at
its maximum capacity can input 3.5 billion cubic meters/year into
the transmission network. In 2004, volumes of LNG regasified
amounted to the equivalent of approximately 2.1 billion cubic
meters of natural gas. Upgrading of this terminal is underway by
means of an enhancement of the boil-off gas recovery system.</p>

<p>In 2004, a total of 80.41 billion cubic meters of natural gas
were input in the national network, of these 65% were owned by
Eni.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="60%"><font size="2"><b>Natural
        gas transported in Italy</b> <sup>(1)</sup></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="60%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(billion
        cubic meters)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Eni</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>63.73</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>58.17</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>54.56</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>51.74</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>52.15</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Third
        parties</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>9.45</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>11.41</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>19.11</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>24.63</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>28.26</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Enel</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.28</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8.28</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9.18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9.25</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Edison Gas</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.98</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4.61</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.49</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8.00</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.08</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7.96</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11.01</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>73.18</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>69.58</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>74.40</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>76.37</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>80.41</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Include
        volumes input to domestic storage.</font></td>
    </tr>
</table>

<p>The Italian natural gas system is supplied for about 80% with
imported gas, transmitted to Italy through a network of
international high pressure pipelines for a total of over 4,300
kilometers; in which Eni owns transportation rights, in
particular:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the TENP pipeline,
        968-kilometer long (a 500-kilometer long single line and
        a 468-kilometer long doubling line) with transit capacity
        of 44 million cubic meters/d 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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the Transitgas pipeline,
        291-kilometer long, 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 61
        million cubic meters/d. 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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the TAG pipeline,
        1,018-kilometer long, made up of two lines, each about
        380-kilometer long and a third line 258-kilometer long,
        with a transit capacity of 81 million cubic meters/d 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 in the Italian natural gas transport
        system;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the TTPC pipeline,
        742-kilometer long, made up of two lines each
        371-kilometer long with a transit capacity of 78 million
        cubic meters/d 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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the TMPC pipeline for the
        import of Algerian gas, 775-kilometer long, made up of
        five lines each 155-kilometer long with a transit
        capacity of 101 million cubic meters/d which crosses
        underwater the Sicily Channel from Cap Bon to Mazara del
        Vallo in Sicily, the point of entry into the Italian
        natural gas transport system;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the Greenstream pipeline for
        the import of Libyan gas, 520-kilometer long, with a
        transit capacity of 24.4 million cubic meters/d which
        crosses underwater the Mediterranean Sea from Mellitah to
        Gela in Sicily, the point of entry into the Italian
        natural gas transport system. The pipeline started
        operations in October 2004, when fully operational it
        will transport 8 billion cubic meters/year (of these 4
        billion are Eni&#146;s share) produced in Libyan fields,
        see &quot;Exploration &amp; Production &#150; Libya&quot;
        above.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>On May 25, 2005, Eni and the Algerian company Sonatrach have
agreed to upgrade the TTPC pipeline by 3.2 billion cubic meters
of annual transport capacity starting from 2008 and up to further
3.3 annual billion cubic meters starting from 2012. The transport
capacity of the import line from Algeria is currently around 27
billion cubic meters/year and will reach 33.5 billion cubic
meters/year in 2012. Expenditure for the expansion of the TTPC
pipeline amounts to euro 330 million and will be entirely
financed by Eni. The whole additional transport capacity will be
sold to third party importers in Italy. Sonatrach will carry out
investments aimed at reinforcing with an equivalent capacity the
pipelines extending from Algeria to the border with Tunisia. The
agreement also provides for the restructuring of the
Transmediterranean Pipeline Company Limited (TMPC), equally owned
by Eni and Sonatrach, which owns the TMPC subsea pipeline linking
Tunisia to the Italian coast, and a new contractual framework for
transport services.</p>

<p>Eni plans to upgrade the TAG pipeline<font color="#FFFF00"> </font>by
3.2 billion cubic meters of annual transport capacity starting
from 2008. This additional capacity will be sold to third parties
on the basis of a process designated to guarantee equal
conditions. Eni expects its share of capital expenditure for this
project to amount to approximately euro 115 million. At present
the transport capacity of the TAG pipeline is 32.5 billion cubic
meters per year.</p>

<p>Eni holds a 50% interest in the Blue Stream underwater
pipeline linking the Russian and Turkish coast of the Black Sea.
When fully operational, this 774-kilometer long pipeline with a
transmission capacity of 49 million cubic meters/d, will
transport 16 billion cubic meters per year in 2010 (Eni&#146;s
share 8 billion) of Russian natural gas to be sold on the Turkish
market (see &quot;Development Projects&quot; below).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Distribution activity</i></b></p>
</blockquote>

<p>Distribution involves the delivery of natural gas to
residential and commercial users in urban centers through low
pressure networks. Eni, through its 100% subsidiary Italgas and
other subsidiaries, is engaged in the distribution activity in
Italy serving 1,236 municipalities through a low pressure network
consisting of over 47,000 kilometers of pipelines at December 31,
2004. Legislative Decree No. 164/2000 concerning the opening up
of the natural gas market in Italy defines distribution as a
public service which is subject to regulation and its management
is entrusted to natural gas companies by local governments
exclusively under bid procedures. Concessions existing at the
coming into force of the Decree and awarded with a bid procedure
expire on December 31, 2012; all other concessions expire on
December 31, 2007 (with an optional one-year extension in case of
public interest). See &quot;Regulation of the Italian Hydrocarbon
Industry &#150; Gas &amp; Power&quot; below.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Development Projects</i></b></p>
</blockquote>

<p>Eni is engaged in various development projects concerning the
sale of natural gas in European markets and in the LNG business
in order to compensate for lower growth opportunities on the
domestic market, due to the limits set on operators by the sector
regulation. In these European markets Eni can leverage on a
favorable competitive positioning ensured by gas availability,
access to infrastructure, long standing relations with producing
countries and knowledge of markets. Eni intends to also develop
its presence in the LNG business which provides interesting
growth prospects, leveraging on the value of its assets, on its
participation in liquefaction projects aimed at exploiting its
natural gas reserves (mainly in North and West Africa, the Far
East and Australia) and on the purchase of interests in
regasification terminals located in strategic consumption markets
(United States, the United Kingdom and the Far East).</p>

<p><i>Germany </i>Eni has been present on the German natural gas
market since late 2002 through GVS (Gasversorgung S&#252;ddeutschland
GmbH) in which it acquired a 100% interest in a joint venture
with the German electricity operator EnBW. GVS is the sixth
largest operator in the German gas market and the fourth in terms
of volumes transported. Through a 1,863-kilometer long gas
pipeline network (of these 1,750 are owned and 113 are managed)
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.</p>

<p>In January 2005 Eni agreed a 14 year contract, starting in
2006, for the supply of 1.2 billion cubic meters/year of natural
gas to the German company Wingas. The gas will be delivered at
Eynatten at the German-Belgian border.</p>

<blockquote>
    <p><i>Iberian Peninsula</i></p>
</blockquote>

<p><i>Portugal </i>Eni operates on the Portuguese market through
Galp Energia (Eni&#146;s interest 33.34%). On March 31, 2004 the
Portuguese Government, Eni, Energias de Portugal (EdP), Rete
Eletrica National (REN), Parpublica and Galp Energia (Galp)
defined agreements for: (i) Eni&#146;s exit from refining and
marketing of refined products in Portugal; (ii) Eni&#146;s
focusing its interests in natural gas through the purchase of a
49% stake in Gas de Portugal after the spin-off by Galp Energia
of its transport and distribution network; and (iii) the
remaining 51% interest owned by EdP. On December 9, 2004 the
European Commission refused to authorize this transaction
considering that it would have strengthened EdP&#146;s dominant
position on the Portuguese electric market; this brought to an
end the agreements of March 31, 2004 and revived the agreements
signed in 2000 by Eni and the Portuguese Government on the
management of Galp. In order to evaluate possible alternatives to
the transactions defined on March 31, 2004, in January 2005 Eni
and the Portuguese Government defined a new agreement which
postpones Eni&#146;s right to increase its interest in Galp (call
option). In 2004, Galp Energia sold about 4.4 billion cubic
meters of natural gas to about 820,000 customers through a
network of high, medium and low pressure pipelines about
11,700-kilometer long. Galp&#146;s assets include among others
interests in two import infrastructures, the Transmaghreb
pipeline and the Sines LNG terminal, which provide access to the
Iberian market.</p>

<p><i>Spain </i>Eni operates on the Spanish market through the
Uni&#243;n Fenosa Gas group (Eni&#146;s interest 50%, the remaining
50% being held by Uni&#243;n Fenosa SA), which is active in natural
gas supply and sale to final users and to power generation
companies. In 2004, natural gas sales of Uni&#243;n Fenosa Gas
amounted to 1.2 billion cubic meters. Uni&#243;n Fenosa Gas active in
LNG through an 80% interest in a liquefaction plant with a
capacity of over 7 billion cubic meters per year, located at
Damietta on the Egyptian coast that started operations in January
2005, and through a 7.36% interest in a liquefaction plant under
construction in Oman, which is expected to start operations in
2006. In addition, it holds an 18.9% and a 42.5% interest in the
El Ferrol and Sagunto regasification plants under construction,
managed by the Reganosa and Saggas companies. The Sagunto plant
is expected to start operations at the end of 2005, while the El
Ferrol plant is expected to start operations in 2006.</p>

<p><i>Turkey - 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 (Dzhubga) 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. In 2004, Botas withdrew approximately 3.2 billion cubic
meters of natural gas (of which 1.6 billion 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>LNG</i></b></p>
</blockquote>

<p>Eni is a party in various initiatives in the area of LNG. What
follows is a description of the major initiatives.</p>

<p><i>Nigeria </i>Eni holds a 10.4% interest in Nigeria LNG Ltd
(NLNG) that manages the Bonny natural gas liquefaction plant and
exports LNG. This interest allows Eni to market its proved
reserves of Nigerian natural gas. The plant, made up of three
treatment trains with an overall capacity of about 11.2 billion
cubic meters/year of liquefied natural gas, is undergoing an
upgrade by means of the installation of two further trains,
expected to start operating in the second half of 2005. In July
2004 the shareholders of NLNG approved the construction of a
sixth train with an expenditure of about dollar 400 million, net
to Eni, including also the expenditure related to the upstream
phase. The sixth train is expected to start operations in 2007.
When fully operational in 2007 the plant will have a capacity of
26.5 billion cubic meters/year of LNG.</p>

<p>Eni also takes part in a study for the construction of a
liquefaction terminal at Brass on the Nigerian coast, about 100
kilometers West of Bonny. The plant will have a capacity of
approximately 14 billion cubic meters/year of LNG (and 1.2
million tonnes/year of LPG). Natural gas supplies to this plant
will come from Eni&#146;s production volumes of natural gas, see
&quot;Exploration &amp; Production &#150; Nigeria&quot; above.</p>

<p><i>Australia </i>Eni holds a 12.04% interest in the Bayu Undan
project (see: &quot;Exploration &amp; Production - Development
Projects&quot;, above) which provides for the construction of a
liquefaction plant for the production of approximately 4.5
billion cubic meters/year of LNG destined to the Japanese market.</p>

<p><i>Egypt </i>In January 2005 the first LNG shipment was
delivered to the Damietta treatment plant (Eni&#146;s interest
40%). When fully operational the plant will produce approximately
7 billion cubic meters/year of LNG mainly directed to the Spanish
market.</p>

<p><i>USA </i>In March 2005 Eni signed a preliminary agreement
for the purchase of a share of regasification capacity
corresponding to 4 to 6 billion cubic meters/year of LNG at the
Cameron terminal, under construction on the coast of Louisiana,
for a term of 20 years. The terminal is expected to be completed
in 2008 with an initial capacity of 15 billion cubic meters/year.
This deal provides Eni with access to the North American gas
market which will absorb part of Eni&#146;s African reserves.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Other Developments</i></b></p>
</blockquote>

<blockquote>
    <p><i>Demerging of Italgas</i></p>
</blockquote>

<p>On June 23, 2004, Eni&#146;s Board of Directors approved the
demerger of Italgas, with assignment to Eni of the interests held
by Italgas in Italian companies engaged in the sale of natural
gas to the residential segment (including the 100% interest in
Italgas Pi&#249;) and foreign natural gas distribution companies
(including 40% in Tigaz), as well as the incorporation of Italgas
Pi&#249; into Eni. Italgas, with headquarters in Turin, continues to
manage the distribution network. As a result of the incorporation
of Italgas Pi&#249;, Eni will have direct access to the approximately
5 million customers supplied by the company in Italy, optimizing
its commercial structure. This operation is in line with the
scope of the public tender offer launched in November 2002 for
Italgas shares, aiming at integrating commercial and development
policies within Eni natural gas business, and simplifies the
Group&#146;s shareholding structure.</p>

<blockquote>
    <p><i>Sale of the water business</i></p>
</blockquote>

<p>On December 13, 2004, Italgas signed agreements for the sale
of its majority interest (67.05%) in Societ&#224; Azionaria per la
Condotta di Acque Potabili to Amga SpA and Smat SpA for euro 85.1
million (euro 15.57 per share). On January 20, 2005 the Italian
Antitrust Authority authorized the transaction, which was closed
on March 15, 2005.</p>

<p>On March 10, 2005, Italgas signed agreements for the sale of
its 100% interest in Acquedotto Vesuviano SpA to Gori SpA for
euro 20 million. The transaction was authorized by the Italian
Antitrust Authority in April 2005 and closed in May 2005.</p>

<p>The above transactions are part of Eni&#146;s strategy of
concentrating its resources in its core natural gas business.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Electricity Generation</i></b></p>
</blockquote>

<p>Eni, through EniPower, is one of the major operators in
electricity generation on the Italian market. Operating since
2000, EniPower owns power stations located at Eni&#146;s sites in
Brindisi, Ferrera Erbognone, Livorno, Mantova, Ravenna, Ferrara
and Taranto with installed capacity in operation of approximately
3.3 gigawatts at December 31, 2004.</p>

<p>In 2004, Eni sold 17 terawatthour of electricity, of which
about 13.85 were produced by EniPower, corresponding to over 5%
of the Italian market, and 10 million tonnes of steam.</p>

<p>Eni is implementing a plan for expanding its electricity
generation capacity targeting in 2007 an installed capacity of
5.3 gigawatts. Planned expenditure amounts to euro 2.2 billion,
of which 1.6 billion is already expensed. In 2004, the Ferrera
Erbognone and Ravenna power stations started their full
commercial operation, while construction is still underway at
Brindisi, Mantova and Ferrara.</p>

<p>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 &quot;green certificates&quot;<a
href="#(9)"><sup>9</sup></a>.</p>

<p>Eni estimates that with the same amount of energy (electricity
and heat) produced, EniPower power stations will reduce emissions
of carbon dioxide by approximately 11.8 million tonnes, as
compared to emissions caused by conventional power stations.
According to management&#146;s estimates, this amount corresponds
to approximately 8% of the total carbon dioxide generation of the
Italian thermoelectric segment in 2002. These power stations will
also generate negligible amounts of particulate and sulfur
oxides, as well as very low emissions of nitric oxides. EniPower
intends to become a cost leader in the Italian electricity
industry thanks to the high technology content and optimal size
of the plants it is building. When fully operational in 2008,
consumption of natural gas of Eni&#146;s plants will reach over 6
billion cubic meters/year, supplied by Eni.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%"><b>Power Generation</b></td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2"><b>Purchases</b></font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">Natural
        gas </font></td>
        <td valign="bottom" width="30%"><p align="right"><font
        size="1">(million cubic meters)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">819</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">940</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,617</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Other fuels</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(thousand tonnes of oil
        equivalent)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">885</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">847</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">695</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2"><b>Sales</b></font></td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Electricity production sold</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(terawatthour)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5.55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.85</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">Electricity
        trading </font></td>
        <td valign="bottom" width="30%"><p align="right"><font
        size="1">(terawatthour)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.74</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3.10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3.10</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Steam</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(thousand tonnes)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,302</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,303</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,040</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p><b>Ferrera Erbognone</b> On May 14, 2004 the combined cycle
power station was inaugurated, the first one in Italy after the
opening up of the electric market. This power station has an
installed capacity of approximately 1,030 megawatts articulated
in three combined cycle units, two of them with approximately 390
megawatts capacity are fired with natural gas, the third one with
approximately 250 megawatts capacity will be fired in part with
natural gas and complemented with refinery gas obtained from the
gasification of tar from visbreaking from Eni&#146;s nearby
Sannazzaro de&#146; Burgondi refinery.</p>

<p><b>Ravenna</b> Two new combined cycle 390 megawatts units
started operations in 2004. Added to the existing 190 megawatts,
the power station&#146;s installed capacity reached approximately
970 megawatts.</p>

<p><b>Brindisi</b> Three new combined cycle units each with 390
megawatt capacity are under construction. When fully operational
the power station will have a total capacity of approximately
1,320 megawatts, including already existing amounts. The
completion of the power station is expected between the end of
2005 and the first quarter of 2006.</p>

<p><b>Mantova</b> Work is underway for the installation of two
new combined cycle 390 megawatts units, the first one of which
already performed its first parallel run with the national
network. The second unit is expected to start operating in the
second half of 2005, with full operation in early 2006. When
completed, the power station will have a total installed capacity
to approximately 840 megawatts. This power station will provide
steam for heating purposes delivered to Mantova&#146;s urban
network through a remote heating system.</p>

<p><b>Ferrara</b> EniPower owns 51% of the share capital of
Societ&#224; EniPower Ferrara (SEF) in partnership with EGL Italia,
an Italian affiliate of the Swiss group EGL. SEF started the
construction of two new combined cycle units with a capacity of
390 megawatts each which will bring total installed capacity at
Ferrara to 840 megawatts. Operations are expected to start in
2007. In 2004, some 80 megawatts of capacity were purchased.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Capital Expenditure</i></b></p>
</blockquote>

<p>See &quot;Item 5 &#150; Liquidity and Capital Resources &#150;
Capital Expenditure by Segment&quot;.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="R&amp;M">Table of Contents</a></h5>

<p><font size="3"><b>Refining &amp; Marketing</b></font></p>

<p>Eni is engaged in refining and sale of refined products,
mainly in Italy, and the rest of Europe.</p>

<p>According to management&#146;s assumptions the scenario of the
refining industry in Europe in the medium term will be
characterized by: (i) a decline in gasoline consumption in favor
of diesel fuel, related to the renewal of the car fleet that
favors diesel cars; (ii) a progressive substitution of fuel oil
with natural gas; (iii) an increase in differential between light
and heavy crudes that favors high conversion capacity refineries;
and (iv) the evolution of European fuel specifications as
concerns sulfur content (50 ppm from 2005 and 10 ppm from 2009).
In this context Eni intends to increase the conversion capacity
and flexibility of its refineries in order to upgrade its
production to meet European environmental standards and
differentiate its range of products dedicated to specific market
segments.</p>

<p>Eni intends to continue the upgrading process of its
distribution network in Italy in order to reach European
standards in terms of average throughput and services to
customers. In this area Eni intends to increase its offer of
diversified fuels with low environmental impact and to promote
customer loyalty initiatives and develop non oil activities. In
the rest of Europe Eni intends to strengthen its position in
target markets, where it can obtain logistical and operating
synergies and exploit the well-known Agip brand. Sales volumes
will be increased by buying or leasing well equipped and high
throughput services stations and building new ones.</p>

<p><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></p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Supply and Trading</i></b></p>
</blockquote>

<p>In 2004, a total of 67.05 million tonnes of oil were purchased
(63.4 in 2003), of which 35.73 million tonnes were from
Eni&#146;s Exploration &amp; Production segment<a href="#10"><sup>10</sup></a>,
19.9 million tonnes under long-term contracts with producing
countries and 11.42 million tonnes on the spot market. Some 24%
of oil purchased came from West Africa, 22% from North Africa,
16% from the North Sea, 17% from countries of the former Soviet
Union, 11% from the Middle East, 7% from Italy and 3% from other
areas. Some 32.39 million tonnes were resold, representing an
increase of 1.19 million tonnes over 2003, up 3.9%. In addition,
3.10 million tonnes of intermediate products were purchased (3.43
in 2003) to be used as feedstocks in conversion plants and 18.8
million tonnes of refined products (17.73 in 2003) sold as a
complement to own production on the Italian market (4.99 million
tonnes) and on markets outside Italy (13.83 million tonnes).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Refining</i></b></p>
</blockquote>

<p>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) of which 29.2 million tonnes
capacity is located in Italy.</p>

<p>Eni&#146;s refining system in Italy is made up of five wholly
owned refineries and a 50% interest in the Milazzo refinery in
Sicily. In March 2005 Eni sold its 28% interest in Erg Raffinerie
Mediterranee SpA (Priolo refinery) to Erg SpA. Eni&#146;s wholly
owned refineries in Italy had a balanced capacity of 25.2 million
tonnes (equal to 504 KBBL/d), with a 59.2% conversion equivalent
capacity. Eni intends to consolidate its refining activity by:
(i) increasing flexibility and conversion capacity with the aim
of producing fuels adequate to demand and meeting European
environmental standards, in particular Eni aims at increasing the
conversion index of its wholly and partiality owned refineries in
Italy from 61% in 2004 to 67% in 2008; and (ii) reducing FOB
refining capacity in order to reduce its exposition to the
volatility of margins, typical of low complexity refineries
located far from their end markets. The constant improvement in
Eni&#146;s refining system will allow it to increase its
integration with the Exploration &amp; Production segment in
order to increase intake volumes of own crudes. The share of own
crudes processed will increase from 33% in 2004 to over 36% in
2008.</p>

<p style="page-break-before:always">The table below sets forth
certain statistics regarding Eni&#146;s refineries at December
31, 2004.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Location</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Ownership Interest</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Conversion<br>
        Equivalent</b> <sup>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Balanced Primary Distillation Capacity</b> <sup>(2)</sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">Wholly-owned refineries:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sannazzaro</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="2">Lombardy</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">100.0%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">42.5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">160,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gela</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Sicily</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">100.0%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">140.1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">100,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taranto</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="2">Apulia</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">100.0%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">71.6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">90,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Livorno</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Tuscany</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">100.0%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11.4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">84,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Porto
        Marghera</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="2">Veneto</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">100.0%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">22.8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">70,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">59.2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">504,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">Partly-owned
        refineries:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Milazzo</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Sicily</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">50.0%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">69.6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">80,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ingolstadt/Vohburg/Neustadt</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="2">Germany</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">20.0%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">32.6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">52,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Schwedt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="center"><font size="2">Germany</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8.0%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">41.8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Kralupy/Litvinov</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="2">Czech Rep.</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">16.3%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">28.8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">26,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">49.7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">177,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        Eni</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">56.7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">681,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Stated in
        fluid catalytic cracking equivalent/topping (% by
        weight), based on 100% of balanced primary distillation
        capacity.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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></td>
    </tr>
</table>

<p>Each of Eni&#146;s Italian refineries is specialized based on
its logistical configuration, geographic location and integration
with other Eni business segments.</p>

<p><b>Sannazzaro,</b> with a balanced primary refining capacity
of 160 KBBL/d and an equivalent conversion index of 42.5% is one
of the most efficient refineries in Europe. Located in the
South-West of the Po Valley, at the confluence of the rivers Po
and Ticino, it produces mainly gasolines, gasoil and other light
products for the supply of markets in North-Western Italy,
Switzerland and Bavaria. Besides 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), an HDCK middle distillate conversion and a visbreaking
thermal conversion unit. This refinery processes mainly oil from
Russia, Africa and the North Sea, oil from Eni&#146;s nearby
Villafortuna field and, more recently, CPC Blend crude oil from
the Caspian Sea carried through the CPC pipeline. From a
logistical standpoint this refinery is located along the route of
the Central Europe Pipeline, which links the Genova terminal with
French speaking Switzerland and Bavaria. In 2004, works continued
for the completion of the tar (heavy residue from visbreaking)
gasification plant that will produce syngas that will be used to
fire the nearby EniPower power station at Ferrera Erbognone. In
the medium term Eni plans an increase in the conversion capacity
of this refinery by building a new hydrocracking unit (for the
production of high quality diesel fuel, kerosene for aircrafts
and lubricant bases for the Livorno refinery). Capital
expenditure for this project is expected to amount to euro 170
million.</p>

<p><b>Gela,</b> with a balanced primary refining capacity of 100
KBBL/d and an equivalent conversion index of 140.1% represents an
upstream integrated pole with the production of heavy crudes
obtained from nearby Eni fields offshore and onshore 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. Besides its primary distillation plants,
this refinery contains the following plants: an FCC unit with
advanced technology for the conversion of low grade feedstocks
and two coking plants for the vacuum conversion of heavy
residues. All these plants are integrated in order to process
heavy residues and feedstocks and manufacture valuable products.
This refinery also contains modern residue and exhaust fume
treatment plants which allow the complex to comply with the most
exacting environmental standards. Oil and oil products are
handled on land and by sea.</p>

<p><b>Taranto,</b> with a balanced primary refining capacity of
90 KBBL/d and an equivalent conversion index of 71.6%, can
process a wide range of crudes and semi-finished products with
great operational flexibility. It mainly produces fuels for
automotive use and residential heating purposes for the
South-Eastern Italian markets. Besides 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 that allows to convert
high sulfur content residues into valuable products with low
environmental impact. 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 2004, a total of 2.3 million tonnes of
this oil were processed. In the medium term Eni plans an increase
of the conversion capacity of this refinery through the
conversion of one of the four RHU reactors into a hydrocracking
plant for the manufacture of high quality diesel fuel and virgin
naphtha destined to Eni&#146;s Brindisi petrochemical plant.
Planned expenditure amounts to approximately euro 60 million.</p>

<p style="page-break-before:always"><b>Livorno,</b> with a
balanced primary refining capacity of 84 KBBL/d and an equivalent
conversion index of 11.4%, manufactures mainly gasolines, fuel
oil for bunkering, 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 an 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 as concerns reception, handling and
distribution of products.</p>

<p><b>Porto Marghera,</b> with a balanced primary refining
capacity of 70 KBBL/d and an equivalent conversion index of
22.8%, produces mainly gasolines and other light products for the
supply of markets in North-Eastern Italy, Austria, Slovenia and
Croatia. Besides its primary distillation plants, this refinery
contains a gasoline treatment plant, octanization plants and a
two-stage thermal conversion plant (visbreaking/thermal cracking)
for increasing yields of valuable products.</p>

<p>On March 2, 2005 Eni sold to Erg SpA its 28% interest in Erg
Raffinerie Mediterranee SpA and Erg Nuove Centrali SpA,
anticipating the maturity (November 2006) of Eni&#146;s put
option, provided for by the agreement for the restructuring of
the Priolo site signed on October 1, 2002. In order to guarantee
the continuity of existing supply contracts of oil-based
feedstocks to Polimeri Europa, Eni&#146;s processing contract for
about 2 million tonnes/year of crude oil retains validity until
December 31, 2006 at the conditions (yields and payments)
reflecting the current setup of the refinery.</p>

<p>In Germany Eni holds an 8.3% interest in the <b>Schwedt</b>
refinery and a 20% interest in <b>Bayernoil</b>, 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 the production of
the three integrated refineries and of the Schwedt refinery is
mainly used to supply Eni&#146;s distribution network in Bavaria
and Eastern Germany.</p>

<p>Eni holds a 16.33% interest in <b>Ceska Rafinerska</b> which
owns and manages two refineries, Kralupy and Litvinov, in the
Czech Republic.Eni&#146;s overall balanced conversion capacity
from this refinery amounts to 26 KBBL/d. </p>

<p>Eni is evaluating a restructuring of the Bayernoil refinery
pole and the purchase of interests in strategically located
refineries aimed at supporting growth in its distribution
activities in the rest of Europe.</p>

<p>The table below sets forth Eni&#146;s petroleum products
availability figures for the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b>Petroleum
        products availability</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="60%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(million
        tonnes)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Italy</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Products
        processed in wholly-owned refineries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">32.93</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">32.24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">30.09</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">25.09</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">26.75</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Products processed for third parties</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3.41</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.88</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Products
        processed in non owned refineries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8.41</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">6.27</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8.43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8.10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Products consumed and lost</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2.11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Products
        available</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>35.82</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>34.76</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>32.57</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>30.16</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>31.71</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Purchases of finished products and change in
        inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5.19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5.86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5.07</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Finished
        products transferred to foreign cycle</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(4.58</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(4.96</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(5.56</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(5.19</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(5.03</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Consumption for power production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.74</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.07</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1.06</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Sales</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>35.54</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>34.99</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>31.54</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>29.76</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>30.69</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Outside Italy</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Products
        available</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3.07</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3.02</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">2.98</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3.36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4.04</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Purchases and change in inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.78</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Finished
        products transferred from Italian cycle</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4.58</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4.96</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.56</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.03</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b><i>Sales</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>17.92</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>18.25</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>20.70</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>20.67</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>22.85</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><b><i>Sales
        in Italy and outside Italy</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>53.46</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>53.24</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>52.24</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>50.43</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>53.54</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>In 2004, refinery intake processing on Eni&#146;s own account
in Italy and outside Italy (37.68 million tonnes) increased by
2.25 million tonnes over 2003, up 6.4%, due mainly to: (i)
increased intake processing in Italy (1.55 million tonnes, up
5.1%) in particular at the Gela, Taranto and Sannazzaro
refineries, the effects of which were offset in part by the
impact of the maintenance standstill of the Livorno and Milazzo
refineries; and (ii) higher processing in the rest of Europe (0.7
million tonnes, up 19.3%) due essentially to higher processing at
Ceska Rafinerska (Eni&#146;s interest 16.33%), which, under the
new organization defined in the second half of 2003, provides a
processing service to shareholders proportional to their
interests (formerly shareholders bought finished products from
the refinery according to their requirements). Total intake
processing (on own account and for third parties) on wholly owned
refineries amounted to 26.75 million tonnes (25.09 in 2003) with
full utilization of their overall balanced capacity. About 33% of
all oil processed came from Eni&#146;s Exploration &amp;
Production Division (32.9% in 2003).</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Logistics</i></b></p>
</blockquote>

<p>Eni is engaged in storage and transport of petroleum products
in Italy. Its logistical integrated infrastructure consists of 12
directly managed storage sites and a network of petroleum product
pipelines.</p>

<p>Eni holds interests in five companies established by the major
Italian operators in the oil business in Vado Ligure-Genova
(Petrolig), Arquata Scrivia (Sigemi), Venice (Petroven), Ravenna
(Petra) and Trieste (DCT) aimed at reducing costs, increasing
efficiency and providing integrated services to customers.</p>

<p>For the transport of refined products on land Eni also owns a
pipeline network, integrated by leased pipelines extending over
3,210 kilometers, of these 1,513 are wholly owned.</p>

<p>Eni&#146;s logistics 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.</p>

<p>Eni also holds 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.</p>

<p>Eni intends to improve the efficiency of its logistics system
also through the creation of joint ventures and agreements with
other oil companies. In the short-term actions are planned on the
logistics systems of Rome, Naples and Trieste with the aim of
reducing operating costs and improving efficiency.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Distribution and Marketing</i></b></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<p><font size="2"><b>Oil products sales in Italy and outside
Italy</b></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="60%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(million
        tonnes)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><i>Italy</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Retail
        sales </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.57</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.64</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10.99</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10.93</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Wholesale sales </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11.10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11.24</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10.70</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>22.67</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>22.88</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>21.78</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>21.34</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>21.63</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.93</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.23</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.82</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.05</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other
        sales <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.94</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7.88</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.94</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.63</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6.01</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Sales in Italy</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>35.54</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>34.99</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>31.54</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>29.76</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>30.69</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2"><i>Outside
        Italy</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2">Retail sales rest of Europe</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.57</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.02</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.47</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Retail
        sales Africa and Brazil</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.71</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.44</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1.18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.57</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3.78</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4.18</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4.01</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4.20</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>4.04</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Wholesale
        sales</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.46</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6.01</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.30</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>9.24</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>9.73</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>9.66</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>10.21</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>9.34</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%"><font size="2">Other
        sales <sup>(1)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8.68</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8.52</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.04</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10.46</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">13.51</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%" bgcolor="#EEEEEE"><font
        size="2"><b>Sales outside Italy</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>17.92</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>18.25</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>20.70</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>20.67</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>22.85</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>53.46</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>53.24</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>52.24</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>50.43</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>53.54</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        bunkering, consumption for power production (until 2001)
        and sales to oil companies. From 2002, includes also
        sales of MTBE.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p>In 2004, sales of refined products (53.54 million tonnes)
increased by 3.11 million tonnes over 2003, up 6.2%, mainly due
to higher sales outside Italy to oil companies and traders (3.05
million tonnes), on retail markets in the rest of Europe (0.45
million tonnes) and on wholesale markets in Italy (0.35 million
tonnes). These increases were offset in part by the divestment of
activities in Brazil (1.6 million tonnes).</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Retail Marketing</i></b></p>
</blockquote>

<blockquote>
    <p><i>Retail sales in Italy</i></p>
</blockquote>

<p>Sales of refined products on retail markets in Italy in 2004
(10.93 million tonnes) were in line with those of 2003; the
effect of the sale/closure of service stations within the network
rationalization process and of the decline in the number of
highway concessions following bid procedures was almost entirely
offset by higher sales in service stations with higher
throughput. Market share declined by 0.3 percentage points from
36.6% to 36.3%. Average throughput (1,863,000 liters) increased
by 50,000 liters over 2003, up 2.8%. Average throughput of Agip
branded service stations increased by 4.5% (from 2,418,000 to
2,528,000 liters).</p>

<p>At December 31, 2004, Eni&#146;s retail distribution network
in Italy consisted of 7,244 service stations (49% of these owned
by Eni), 46 less than at December 31, 2003, due to the closure of
167 service stations, and the decline in the number of highway
concessions (11 units) offset in part by the positive balance
(106 units) of purchases and releases of lease contracts, the
opening of 24 new service stations and the awarding of 2 highway
concessions.</p>

<p>Eni is implementing a process of upgrading of its distribution
network in Italy with the objective to reach European standards
in terms of throughput and services provided to customers. To
this end it intends to promote initiatives aimed at developing
customer loyalty and developing non-oil activities (catering and
convenience stores) and to offer a range of different fuels. In
the medium term, Eni plans to increase the average throughput of
its Agip branded service stations.</p>

<p>In 2004, Eni started to sell the new BluSuper gasoline, which
guarantees better engine performance and efficiency and reduces
polluting emissions, thanks to its high antidetonating power
resulting from a higher octane number (98 as compared to 95 of
ordinary gasolines) and its lack of sulfur. BluSuper complements
BluDiesel, sold since 2002, and is part of Eni&#146;s strategy to
improve the quality of its fuels, anticipating their compliance
with EU regulations (mandatory from 2009) and targeting its offer
to customers&#146; requirements, leveraging on Eni&#146;s
integrated refining-logistics-distribution system. In 2004,
BluSuper sales amounted to 83 million liters. At year end Agip
branded service stations selling BluSuper were about 1,000,
corresponding to about 23% of the network.</p>

<p>In 2004, sales of BluDiesel totalled 1.2 billion liters (up
37.8% over 2003), corresponding, according to management&#146;s
estimates, to 21% of total diesel fuel volumes sold on the Agip
branded network (16% in 2003) and to 7% of all diesel fuel sales
on the Italian market (5.2% in 2003). At the end of 2004 about
3,900 Agip branded service stations were selling BluDiesel,
corresponding to about 90% of the Agip network.</p>

<p>In 2004, Eni carried out a Do-It-Yourself campaign which
allowed customers accessing self-service outlets provided with an
electronic card to obtain price discounts or gifts in proportion
to the total amount of purchased fuel, plus a bonus for the most
loyal customers and long-distance drivers. At year end the number
of cards distributed exceeded 3.8 million. The amount of fuel
purchased with these cards was about 30% of all fuel sold on Agip
branded service stations. Service stations participating in this
initiative were approximately 3,200. Points registered by
fidelity cards increased by about 50% over 2003.</p>

<p>Eni continued also its AgipMaxi promotional initiative
addressed to truck drivers who purchase diesel fuel at the
approximately 800 Agip branded service stations participating in
the program. Active fidelity cards were over 38,000.</p>

<p>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, 2004 nearly all Agip branded service
stations were provided with a corporate credit card system.</p>

<p>In 2004, Eni continued the development of the European
Multicard Routex paying card addressed to professional transport
(transporters and car fleets) with sales of 1.4 billion liters
(up 9.2% over 2003), while the number of customers provided with
this card increased by about 3,000 to 45,000 users at year end.
Multicard is used internationally and is part of the
international Routex consortium, made up of four oil companies.</p>

<p>Eni continued the development of its non-oil retail activities
aimed at promoting the development of its network in line with
European standards, such as the diffusion of self-service
facilities, high-tech car care systems, catering services 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.</p>

<p>In 2004, a total of 103 new affiliations were added to the
AgipCaf&#232;<sup>&#174;</sup> branded outlets launched in 2003, and by
year end 207 franchises were active, while 2 new Pans &amp; Co
outlets and 7 new convenience stores under the
&quot;SpazioAgip&quot; brand name were opened. A total of 88 new
car-wash facilities were opened on Agip branded service stations.</p>

<p>In the next four years Eni intends to continue the development
of its non-oil activities and expects to provide 70% of its Agip
branded network with these structures by 2008 (50% in 2004).</p>

<p>As part of its rationalization strategy Eni sold its 50%
interest in Finifast, a catering company, to its former partner
Fini.</p>

<p>In April 2005, Eni signed a preliminary agreement to divest
its 100% interest in its subsidiary Italiana Petroli. See
&quot;Item 5 &#150; Recent Developments&quot;.</p>

<blockquote>
    <p style="page-break-before:always"><i>Retail sales outside
    Italy</i></p>
</blockquote>

<p>Effective July 1, 2004 Eni sold to the Brazilian company
Petrobras its 100% interest in Agip do Brasil SA, engaged in the
distribution of refined products through a network of 1,544
service stations and in the sale of bottled LPG through a network
made up of 25 bottling facilities and 26 storage sites. Proceeds
from the sale, including net borrowings transferred, amounted to
dollars 509 million.</p>

<p>Following the divestment of distribution activities in Brazil
(which included 1,544 service stations at December 31, 2003) at
December 31, 2004, Eni&#146;s retail distribution network outside
Italy was represented by service stations located only in the
rest of Europe and consisted of 1,896 service stations, 83 more
than at December 31, 2003, following purchases defined in 2003 in
Germany (86 service stations), whose effects were offset in part
by the closure of 11 service stations and the release of lease
contracts (in Switzerland, Hungary and France).</p>

<p>Sales of refined products on retail markets in the rest of
Europe (3.47 million tonnes) increased by 0.45 million tonnes
over 2003, up 14.9%, related to the progressive consolidation of
service stations purchased in 2003, in particular in Spain,
Germany and France. Average throughput (2,393,000 liters)
increased by 15,000 liters over 2003, up 0.6%.</p>

<p>The areas were Eni&#146;s presence is relevant are
South-Central Germany, Spain, Austria, Switzerland and
South-Western France. Eni intends to develop its presence in
these areas, where it can leverage on its well known brand name
and on logistic and operational synergies.</p>

<p>In the medium term, Eni plans to increase sales of refined
products in the rest of Europe by purchasing, leasing and
building service stations and to increase average throughput.</p>

<p>Non oil activities outside Italy is performed under the
&quot;CiaoAgip&quot; brand name in 1,100 service stations, of
these 353 are in Germany and 163 in France.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Wholesale Marketing and Other Sales</i></b></p>
</blockquote>

<p>Eni sells gasolines and fuels for automotive use and for
heating purposes, fuels for agricultural vehicles and for
vessels, gasolines and fuel oil. Major customers are wholesalers,
the agricultural and manufacturing industries, public utilities
and transports. Agricultural customers and fishing fleets are
supplied directly at 60 agricultural centers and 100 owned or
leased marine fuel outlets.</p>

<p>Eni provides its customers with its experience in the area of
fuels with a wide range of products that cover all market
requirements. Along with traditional products provided with the
high quality Eni standard, there is also an innovative low
environmental impact line, which includes Advancediesel and
Biodiesel (with very low content of hydrogen sulfide,
particulates and carbon dioxide) especially targeted for public
and private transports and heating.</p>

<p>Customer care is provided by a very widespread commercial and
logistical organization present all over Italy and articulated in
local sales offices aided by a network of agents, sales persons
and concessionaires.</p>

<p>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 in Italy.</p>

<p>Sales on wholesale markets in Italy (10.70 million tonnes)
increased by 0.35 million tonnes over 2003, up 3.4%, due mainly
to higher sales of asphalt and fuel oil to the thermoelectric
sector. Market share increased by 2.9 percentage points from 24.1
in 2003 to 27%.</p>

<p>Sales to petrochemical companies in Italy (3.05 million
tonnes) increased by 0.26 million tonnes, up 9.3%, due mainly to
increased demand for refinery products.</p>

<p>Outside Italy, wholesale sales (5.3 million tonnes) decreased
by 0.71 million tonnes, down 11.8% due mainly to the divestment
of activities in Brazil, whose effects were offset in part by
higher sales in Germany, Spain and France.</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Other Businesses</i></b></p>
    <p><i>LPG</i></p>
</blockquote>

<p>In Italy Eni is engaged in the production, distribution and
sale of LPG. In 2004, Eni sold 676,000 tonnes of LPG for heating
and automotive use, with a 19.1% market share. Additional 400,000
tonnes of LPG were sold through other channels mainly to oil
companies and traders. LPG activities in Italy derive their
products from 5 Italian refineries and from imports received at
the 3 coastal storage sites located in Livorno, Naples and
Ravenna. Product availability and customer requirements are met
also with other 10 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, 17 agencies and 26
concessionaires. Products are sold also to over 145,000 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.</p>

<p>Following the sale of LPG activities in Brazil, Eni is present
only in Ecuador with a 36.6% market share in 2004.</p>

<p>Outside Italy, LPG wholesale sales amounted to 1.09 million
tonnes with a decrease of 630,000 tonnes, down 36.6% over 2003,
due essentially to the divestment of activities in Brazil.</p>

<blockquote>
    <p><i>Lubricants</i></p>
</blockquote>

<p>Eni operates 10 (owned and co-owned) blending plants, in
Italy, Europe, North and South America, Africa and the Far East.</p>

<p>In Italy Eni produces base oils and a range of products
including over 650 different blends. Eni owns know-how for the
formulation of products for vehicles (engine oil, special fluids
and transmission oils) and industries (lubricants for hydraulic
systems, industrial machinery and metal processing). Base oils
are manufactured primarily at Eni&#146;s refinery in Livorno. Eni
owns a 33% interest in Viscolube, the main facility in Italy for
the reprocessing of used oils. Eni owns two facilities for the
production of additives and solvents. In 2004, retail and
wholesale sales in Italy amounted to over 142,000 tonnes with a
25.8% market share. Eni also sold approximately 5,000 tonnes of
special products (white oils, transformer oil and anti-freeze
fluids).</p>

<p>Outside Italy sales amounted to approximately 110,000 tonnes,
of these about 50% were registered in Europe (mainly Germany, the
Netherlands and Spain) and 26% in the Americas (mainly United
States and Argentina).</p>

<blockquote>
    <p><i>Oxygenates</i></p>
</blockquote>

<p>Eni, through its subsidiary Ecofuel (Eni&#146;s interest
100%), sells about 2 million tonnes/year of oxygenates mainly
MTBE (8% of world demand) and methanol. About 71% 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 29% is bought. In Venezuela Eni plans to
convert its MTBE plants to the manufacture of isoethane, due to
the environmental problems posed by MTBE.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Capital Expenditure</i></b></p>
</blockquote>

<p>See &quot;Item 5 &#150; Liquidity and Capital Resources &#150;
Capital Expenditure by Segment&quot;.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Petrochemicals">Table of Contents</a></h5>

<p><font size="3"><b>Petrochemicals</b></font></p>

<p>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.</p>

<p>In 2004, sales of petrochemical products (5.299 million
tonnes) increased by 33,000 tonnes, up 0.6% over 2003, due
essentially to the increase registered in olefin sales related to
a recovery in demand, whose effect was offset in part by
declining sales in aromatics and intermediates, related to
accidents and market problems, the divestment of the Baytown
plant (thermoplastic rubber) and the shutdown of plants.</p>

<p>At December 31, 2004, Eni&#146;s sales network covered 17
countries, with Italy accounting for 54% of sales, the rest of
Europe for 40% and the rest of the world for 6% (52%, 41% and 7%,
respectively in 2003).</p>

<p>Production (7,118,000 tonnes) increased by 211,000 tonnes, up
3.1% over 2003, due in particular to higher olefin production.
Total nominal production capacity decreased by 2.1% over 2003,
due essentially to the divestment of the Baytown plant, the
shutdown of the Ravenna polybutadiene manufacturing line and the
Porto Marghera butadiene plant. The average capacity utilization
rate calculated on nominal capacity increased by 3.9 percentage
points (from 71.3% to 75.2%), due mainly to an increased
utilization rate of crackers and the favorable effect of the
shutdown of plants with low utilization rate.</p>

<p>The table below sets forth Eni&#146;s main petrochemical
products availability for the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b><sup><b> </b>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b><sup><b> </b>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(thousands
        metric tonnes)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">Basic petrochemicals</font></td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,475</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,119</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,304</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,014</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,236</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%"><font size="2">Styrene and
        elastomers</font></td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">1,693</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">1,537</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">1,538</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">1,635</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">1,606</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">Polyethylene</font></td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">108</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">84</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,274</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,259</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,276</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%"><font size="2">Polyurethane</font></td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">255</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">91</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,532</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,830</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,116</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,907</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,118</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%"><font size="2">Internal
        consumption</font></td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">(3,674</font></p>
        </td>
        <td valign="top" width="1%"><font size="2">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">(3,185</font></p>
        </td>
        <td valign="top" width="1%"><font size="2">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">(2,607</font></p>
        </td>
        <td valign="top" width="1%"><font size="2">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">(2,651</font></p>
        </td>
        <td valign="top" width="1%"><font size="2">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="2">(2,615</font></p>
        </td>
        <td valign="top" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#EEEEEE"><font
        size="2">Purchases and change in inventories</font></td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">757</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">588</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">984</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.010</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">796</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%" bgcolor="#FFFFFF"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total products</font></td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">5,616</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">5,233</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">5,439</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">5,266</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#FFFFFF"><p
        align="right"><font size="2">5,299</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">As compared
        to 2002, in 2003 Eni&#146;s activities have been grouped
        differently: Syndial (former EniChem) was included in the
        &quot;Other activities&quot; segment, which includes all
        Eni companies not included in specific segments. Data for
        years preceding 2002 have not been reclassified.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p>The table below sets forth Eni&#146;s sales of main
petrochemical products by volume for the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="60%">&nbsp;</td>
        <td valign="bottom" width="40%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2001</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b><sup><b> </b>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b><sup><b> </b>(1)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="61%">&nbsp;</td>
        <td width="39%"><p align="center"><font size="1"><b>(thousands
        metric tonnes)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">Basic petrochemicals</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,002</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,928</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,894</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,704</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,766</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%"><font size="2">Styrene and
        elastomers</font></td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,253</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,138</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,151</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,171</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,150</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">Polyethylene</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">107</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">84</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,448</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,391</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,383</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%"><font size="2">Polyurethane</font></td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">253</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">83</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total sales</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,616</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,233</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,493</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,266</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,299</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="2%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">As compared
        to 2002, in 2003 Eni&#146;s activities have been grouped
        differently: Syndial (former EniChem) was included in the
        &quot;Other activities&quot; segment, which includes all
        Eni companies not included in specific segments. Data for
        years preceding 2002 have not been reclassified.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><i>Basic petrochemicals</i></p>
</blockquote>

<p>Sales of basic petrochemicals (2,766,000 tonnes) increased by
62,000 tonnes over 2003, up 2.3%, due to increases registered in
olefins (up 7.2%, in particular ethylene and butadiene) due to a
recovery in demand, whose effects were offset in part by lower
aromatics sales (down 5.2%), related in particular to the
standstill of the Priolo plant, lower trading activities, and
lower intermediate sales (down 2.3%), due mainly to lower acetone
and phenol availability related to a standstill for an accident
occurred at the Porto Torres dock.</p>

<p>Basic petrochemical production (4,236,000 tonnes) increased by
222,000 tonnes over 2003 (up 5.5%) mainly in olefins due to
higher utilization rates of plants and a decline in standstills.</p>

<blockquote>
    <p><i>Styrene and elastomers</i></p>
</blockquote>

<p>Styrene sales (709,000 tonnes) decreased by 14,000 tonnes over
2003, down 2%, due mainly to lower ABS/SAN sales (down 5.9%)
related to the rationalization of the customer/product portfolio
caused by the impending shutdown of the Ravenna plant, expected
in the first half of 2005, and lower styrene sales. These
negative factors were offset in part by increased expandable
polystyrene sales pushed by increasing demand especially in
Eastern Europe in the segment of thermal insulation and
industrial packaging. Said volumes include 112,000 tonnes,
122,000 tonnes and 129,000 tonnes for the years 2004, 2003 and
2002, respectively of styrene purchased under a buy/sell
agreement with a third party.</p>

<p>Elastomer sales (441,000 tonnes) decreased by 7,000 tonnes
over 2003, down 1.5%, due mainly to the shutdown of the Ravenna
polybutadiene rubber line (in late 2003) and the divestment of
the Baytown (USA). These negative factors were offset in part by
an about 8% increase in other product sales, in particular SBR
rubber (up 24%), TPR rubber (up 20%) and EPR rubber (up 19.5%)
pushed by the increase in demand. Latex sales declined (down
2.2%), due to problems in one relevant market.</p>

<p>Production of styrene (1,118,000 tonnes) was substantially
stable as compared to 2003. Lower ABS/SAN production (down 11%),
related to the planned capacity reduction was offset by higher
expandable polystyrene production (up 8%) related to increasing
demand.</p>

<p>Elastomers production (488,000 tonnes) decreased by 4%, due to
divestments and shutdowns. Without taking into account these
factors, production increased by approximately 11%, with
increases higher than 20% in EPR and SBR rubber, in line with the
increase in demand.</p>

<blockquote>
    <p><i>Polyethylene</i></p>
</blockquote>

<p>Sales of polyethylene (1,383,000 tonnes) were substantially
stable as compared to 2003.</p>

<p>Production (1,276,000 tonnes) increased by 1.4%, in line with
the trends in demand; the most significant increases concerned
EVA (up 11%) and LLDPE (up 1.2%), while HDPE production declined
(down 1.6%).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Capital Expenditure</i></b></p>
</blockquote>

<p>See &quot;Item 5 &#150; Liquidity and Capital Resources &#150;
Capital Expenditure by Segment&quot;.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="OSC&amp;E">Table of Contents</a></h5>

<p><font size="3"><b>Oilfield Services Construction and
Engineering</b></font></p>

<p>Eni operates in oilfield services and construction through
Saipem, a company listed on the Italian Stock Exchange
(Eni&#146;s interest 43%), operating in offshore and onshore
drilling and construction.</p>

<p>Eni, through its subsidiary Snamprogetti (100% Eni), is
engaged in engineering and contracting in the area of plants for
hydrocarbon production, treatment and transmission, for the
liquefaction and treatment of natural gas, for natural gas
upgrading (GTL, syngas, methanol, ammonia, urea), for the
conversion of heavy residues from conventional and non
conventional crudes, for the chemical industry, for power
generation, infrastructure and environmental protection.</p>

<p>Orders acquired in 2004 amounted to euro 5,784 million. About
90% of new orders acquired was represented by work to be carried
out outside Italy, and 14% by work originated by Eni companies.
Eni&#146;s order backlog was euro 8,521 million at December 31,
2004 (euro 9,405 million at December 31, 2003). Projects to be
carried out outside Italy represented 84% of the total order
backlog, while orders from Eni companies amounted to 8% of the
total.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%"><font size="2"><b>Orders
        acquired and order backlog</b></font></td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2"><b>Orders acquired</b></font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,852</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,876</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,784</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">Oilfield
        Services Construction</font></td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,454</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,298</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,387</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Engineering</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,398</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,578</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,397</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">Originated
        by Eni companies</font></td>
        <td valign="bottom" width="30%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">To be carried out outside Italy</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">96</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">90</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2"><b>Order
        backlog</b></font></td>
        <td valign="bottom" width="30%"><p align="right"><font
        size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>10,065</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>9,405</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><b>8,521</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,158</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,225</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,306</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">Engineering</font></td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,907</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,180</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,215</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="2">Originated by Eni companies</font></td>
        <td valign="bottom" width="30%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="2">To be
        carried out outside Italy</font></td>
        <td valign="bottom" width="30%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">78</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">81</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">84</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="30%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<blockquote>
    <p>&nbsp;</p>
    <p><b><i>Oilfield Services and Construction</i></b></p>
</blockquote>

<p>Saipem intends to consolidate its competitive positioning in
the segment of large EPIC projects for the development of
offshore and deep offshore hydrocarbon fields by leveraging on
its technological and operational skills, engineering and project
management capabilities and ability to operate in remote areas
and hostile environments. With these qualifications Saipem plans
to meet key success factors of this business represented by the
ability to evaluate risks in the bidding phase, to manage
efficiently the execution of projects and to optimize engineering
activities by delocalizing support activities to low cost areas
and creating local logistical bases.</p>

<p>Saipem intends to develop its operating and technical know-how
in the gas-to-market segment, which includes projects of
construction of offshore and onshore natural gas transmission
systems, natural gas liquefaction and regasification plants
&#150; and the development of hydrocarbon fields in deep waters.
It also intends to expand in the leased FPSO business, for which
West Africa is the region with the most interesting
opportunities, and in floating LNG treatment systems integrated
for production, storage, transport and regasification.</p>

<p>Saipem intends to intensify efficiency improvement actions in
all its activities, in particular by reducing supply and
execution costs while maintaining a high utilization rate of
equipment and improving its flexible structure in order to reduce
the impact of possible negative cycles.</p>

<p>The most significant orders won in 2004 in oilfield services
and construction were:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">In the Offshore construction
        area: in the <b>Middle East</b>: two offshore contracts
        for Dolphin Energy Ltd for the engineering, procurement
        and laying of two gas pipelines each 12-kilometer long
        and one pipeline 372-kilometer long from the North Field
        offshore Ras Laffan in Qatar to the onshore terminal of
        Taweelah in the United Arab Emirates. Works will be
        performed between the second quarter of 2004 and the
        first half of 2006, and the installation will be carried
        out by the Castoro 6 and Castoro 10 vessels; in the <b>North
        Sea</b>: a contract for BBL Co for the installation of a
        pipeline 230-kilometer long with a 36 inch diameter to
        transport natural gas across the North Sea from
        Callantsoog on the North Western Dutch coast to Bacton on
        England&#146;s East coast. The vessel Castoro 6 will
        carry out the pipelaying between the second and third
        quarter of 2006; in <b>China</b>: a contract for Hong
        Kong Electric Co Ltd for the engineering, procurement,
        transport and installation of a 92-kilometer long
        underwater pipeline from the Guangdong LNG terminal to
        Lamma island near Hong Kong. The pipeline will be
        installed during the first half of 2005 by the Castoro 2
        vessel; in <b>West Africa</b>: a contract for Total
        Exploration &amp; Production Angola for the engineering,
        procurement, construction, installation and
        pre-commissioning of subsea umbilicals, risers and
        flowlines for the sub-sea development of the Rosa field,
        as a tie back to the Girassol FPSO vessel in Block 17 in
        a water depth of approximately 1,400 meters. The vessels
        Saipem 3000 and Saibos FDS will carry out the job between
        the first and third quarter of 2006; in the <b>Caspian
        Sea</b>: four contracts: (i) two for Azerbaijan
        International Operating Co within Phase 3 of the
        development of the Azeri-Chirag-Gunashli field. The first
        one for the construction of a template and two jackets
        and associated piles, with a total weight in excess of
        45,000 tonnes, and the second for transport and
        installation activities of two platforms including a
        template, two jackets and two topsides. These works are
        due to be completed by 2007; (ii) the third one in
        January 2005 for the North Caspian Sea consortium for the
        construction, assembly, transport and installation of 45
        piles and 2 flares, along with the installation of 16
        module barges at the Ersai yard (Eni&#146;s interest
        22%). Works are scheduled to be completed by 2007; and
        (iii) the fourth from the North Caspian Sea consortium
        for engineering, procurement, laying and installation of
        pipelines, optic fiber and umbilical cables. The
        installation activities, scheduled to be completed
        between 2006 and 2007, will be carried out using a new
        purpose-built pipelaying barge.</td>
    </tr>
</table>

<p>In the Liquefied Natural Gas area two turnkey contracts were
awarded: (i) the first one, in joint venture with Sofregaz for
Gaz de France for the construction of a regasification terminal
at Fos Cavaou in France, which includes engineering, procurement,
construction of the overall terminal facilities, including three
LNG storage tanks for 110,000 cubic meters each, the associated
marine works and the regasification facilities. The plant will
have a treatment capacity of over 8 billion cubic meters/year;
and (ii) the second one, in consortium with the Belgian companies
CFE, Fontec and Fluxys, for the extension from 4.5 to 9 billion
cubic meters/year of natural gas of the Zeebrugge LNG
regasification terminal on the Belgian coast. It includes
engineering, procurement, construction of the facilities for the
extension of the terminal, including one LNG storage tank for
140,000 cubic meters and the regasification facilities.</p>

<p>In the Onshore Construction area two contracts were acquired:
(i) the first one for NAOC for the engineering, procurement and
construction of a 82-kilometer long gas pipeline in the Niger
Delta connecting Rumuji to the Bonny liquefaction plant; and (ii)
the second one for Shell Petroleum Development Co of Nigeria Ltd
for engineering, procurement and construction of additional
facilities at the LNG Gas Supply Plant located in Soku, Nigeria,
to increase its capacity.</p>

<p>In the Leased FPSO area a contract for Repsol YPF for the
extraction of the fuel oil from the wreck of the Prestige, the
oil tanker sunk offshore Galicia, Spain, in November 2002.</p>

<p>In the Onshore drilling area, in January 2005, a contract for
the North Caspian Sea consortium for drilling activities in Block
D of the Kashagan field utilizing two drilling rigs owned by the
client.</p>

<p>In the Offshore drilling area in January 2005 two contracts
were acquired. The first one for Saudi Aramco involving the
offshore drilling rig Perro Negro 2 for activities to be
performed offshore Saudi Arabia for three years starting in the
second half 2005. The second one for Petrobel involves the
renewal of Perro Negro 4 utilization for two years for workover
activities on the Belayim field offshore Egypt.</p>

<blockquote>
    <p><i>Business areas</i><a name="("></a></p>
</blockquote>

<blockquote>
    <p>OFFSHORE CONSTRUCTION</p>
</blockquote>

<p>Saipem is able to execute large EPIC (Engineering,
Procurement, Installation and Commissioning) projects for the
development of offshore hydrocarbon fields by integrating its
technological and operational skills, supported by a world-class
fleet, 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 in particular in West Africa, the Caspian
Sea, the Far East, Russia and Asia Pacific, in accordance with
plans for the development of hydrocarbon reserves announced by
the major oil companies.</p>

<p>The development of offshore fields, especially in the deep
offshore, is more and more frequently performed by means of
floating production units (FPU), where Saipem intends to
strengthen its competitive positioning. Among FPUs, FPSO vessels<a
href="#(11)"><sup>11</sup></a> offer the best development
prospects due to their storage capacity, which allows to develop
fields remote from transmission infrastructure, and to their
versatility, which allows at the end of the useful life of a
field to relocate vessels on other fields thus expanding their
useful life.</p>

<p>Saipem is engaged in the segment of 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: (i) the laying of large diameter
long distance subsea pipelines and transport infrastructure both
in conventional and deep offshore; (ii) underwater development in
the deep offshore, which includes laying of small diameter pipes,
umbilical lines, risers and other subsea structures thanks to the
design ability of its engineering structures and the installation
capacity of its vessels.</p>

<p>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 of this kind in the world), capable to
lay pipelines 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 cranes capable of lifting over 2,000
tonnes; (iv) the Semac semi-submersible vessel used for large
diameter underwater pipe laying; and (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.</p>

<blockquote>
    <p>OFFSHORE DRILLING</p>
</blockquote>

<p>Saipem provides offshore drilling services to oil companies
mainly in key areas such as West Africa, the Middle East, the
North Sea and North Africa. 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
Saipem 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 operating in excess of
3,000 meters water depth in full dynamic positioning. The ship
has a storage capacity of 140,000 barrels 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 is operating in ultra deep waters (over 1,000
meters) in West Africa.</p>

<p>Other relevant vessels are Scarabeo 5 and 7, third and fourth
generation semi-submersible rigs able to operate at depths of
1,900 and 1,200 meters of water, respectively.</p>

<blockquote>
    <p>LEASED FPSO</p>
</blockquote>

<p>Saipem provides to oil companies services for the development
of offshore hydrocarbon fields by leasing its fleet of FPSO
vessels. Following its recent acquisitions (in particular Moss
Maritime and Bouygues Offshore) Saipem significantly strengthened
its design skills. 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. Saipem&#146;s main vessels are: (i) FPSO Firenze, a
tanker ship which, after its conversion into a floating
production and storage vessel, has been installed in Eni&#146;s
Aquila field, in the Adriatic Sea, where it operates at a depth
of 850 meters; and (ii) FPSO Mystras that has been installed
since January 2004 in the Okono and Okpoho oil fields operated by
Eni with a 100% interest in the deep offshore of Nigeria. Saipem
intends to expand its market share in this business and plans to
upgrade its offer by designing new generic FPSO vessels, designed
and equipped in direct cooperation with the client in order to
identify standard features that make the vessel easily employable
in more than one development projects according to the
client&#146;s portfolio of assets.</p>

<blockquote>
    <p>ONSHORE CONSTRUCTION</p>
</blockquote>

<p>Eni operates in the construction of plants for hydrocarbon
production (separation, stabilization, collection of
hydrocarbons, pumping stations, water injection) and treatment
(removal and recovery of sulfur dioxide and carbon dioxide,
fractioning of gaseous liquids, recovery of condensates) and in
the installation of large onshore transmission systems
(pipelines, compression stations, terminals). The demand for this
kind of services from the oil industry is expected to increase in
the medium term, in particular long distance pipelines represent
one of the favorite systems for linking production areas with
their end markets, despite the increasing competition from other
transport modes (LNG, GTL). The main operation areas are the
Caspian Sea, Russia&#146;s Far East, Africa and the Middle East.
Saipem intends to consolidate its competitive positioning in this
segment by exploiting in particular the opportunities provided by
remote areas, characterized by the lack of infrastructure, where
it can leverage on its distinctive ability to operate in
difficult contexts and to manage complex projects. Saipem 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.</p>

<blockquote>
    <p>ONSHORE DRILLING</p>
</blockquote>

<p>Eni operates in this area as main contractor for the major
international oil companies.</p>

<p>Onshore drilling is conducted through 47 facilities located in
Saudi Arabia, North Africa, Central Asia, Peru, Venezuela and
Italy. Some of these facilities can drill to 10,000-meter depths
in high pressure and high temperature environments. Saipem
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 North Africa.</p>

<p>Saipem can also exploit the opportunities provided by the
emergence of new logistically demanding remote areas lacking
infrastructure that require the ability to operate in hostile
environmental conditions.</p>

<blockquote>
    <p>LNG</p>
</blockquote>

<p>Saipem operates in the LNG segment following its purchase of
Bouygues Offshore and Moss Maritime which contributed their
excellent competence in the LNG chain, complementary to the
onshore and offshore transmission of natural gas. The markets
offering the highest potential are Asia, Europe and the Americas.
Services provided by Saipem include: (i) the onshore segment
which, according to management, shows interesting growth
prospects, where Saipem is engaged in the design and construction
of regasification terminals, storage tanks and vessels; and (ii)
the offshore segment, that includes FSRU (Floating Storage
Regasification Units) and FLNG (Floating Liquefaction plants for
Natural Gas) integrated systems which, according to management,
show interesting growth prospects in the medium term due to their
lower environmental impact and greater flexibility as compared to
other systems. Saipem intends to develop its presence in this
area.</p>

<blockquote>
    <p>MAINTENANCE, MODIFICATION &amp; OPERATION</p>
</blockquote>

<p>Saipem is also present in the MMO business which complements
the company&#146;s activities and provide interesting growth
prospects for the increasing tendency of oil companies to
outsource these services (both routine work and
upgrading/revamping) and for the development of remote areas for
hydrocarbon production. Saipem is capable of seizing the
opportunities provided by this segment by leveraging on its
specialized know-how also as project manager, on its resources
and network of logistical bases.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Engineering</i></b></p>
</blockquote>

<p>Snamprogetti intends to strengthen its competitive positioning
in the market segment of high complexity (in terms of size,
execution and technology) EPC (Engineering, Procurement and
Commissioning) projects requiring a wide and integrated range of
services, management capabilities, flexible organization and a
continuous development of new technologies that can strengthen
Snamprogetti&#146;s competitive positioning. In order to attain
this objective, Snamprogetti intends to enhance its role of
global contractor based on its skills in terms of execution
capabilities, level of services provided and development of
proprietary technologies.</p>

<p>It will focus its activity on market segments selected in such
a way as to guarantee a good balance of profitability and risk
profiles. In order to reduce the cyclicality of the segment of
services for the oil and gas industry, it will expand its
presence in the large infrastructure business in Italy, in
particular in the transport system.</p>

<p>Snamprogetti intends to expand the provision of qualified
services in the phases of front end loading of projects
(feasibility studies, conceptual, basic, FEED engineering and
project management) mainly to major clients and as a support to
Eni&#146;s investment plans. It will also intensify actions for
improving efficiency and operating flexibility also through the
rationalization of its operating structure, the development of
low cost engineering centers, the optimization of procurement,
the adoption of the most stringent international best practices
in terms of working tools and methods and the hiring of highly
qualified resources.</p>

<p>Snamprogetti continues to enhance its proprietary portfolio of
technologies by means of support activities to the development on
an industrial scale of technologies in strategic areas of
interest of Eni, such as the conversion of heavy crudes and high
pressure transmission of natural gas, and the development of
know-how in the field of the manufacture of high quality fuels
and in the area of natural gas upgrading (GTL, syngas, methanol,
ammonia, urea).</p>

<p>In 2004, the engineering order backlog declined by euro 965
million due in particular to the postponement of many projects on
reference markets and of the depreciation of the dollar over the
euro. In the first quarter of 2005, the activity recovered
somewhat and orders were acquired for approximately euro 3
billion, in particular the following contracts were awarded: (i)
from Abu Dhabi Gas Industries (GASCO) for the Ruwais 3<sup>rd</sup>
LNG Train project for NGL (natural gas liquids) production from
the F and G wells of the Thalama field; (ii) in cooperation with
SNC Lavalin for the engineering, procurement and construction of
three plants for the hydrotreatment of oil distillates with a
total capacity of approximately 130 KBBL/d in the Canadian
Natural Resources Ltd complex at Fort McKay, Canada within the
Horizon Oil Sands project; and (iii) from Saudi Aramco for the
construction of a natural gas treatment and compression plant in
Hawiyah in Saudi Arabia.</p>

<p>Among the most significant orders won in 2004 are:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in the Upstream area, in
        particular: (i) a contract in joint venture with Technip,
        Kellog Brown Root for Nigeria LNG Ltd, JGC for
        engineering, procurement and construction of the sixth
        liquefaction train with a capacity of 4 million
        tonnes/year at the Bonny plant in Nigeria. The same joint
        venture already built the first four trains and is
        completing the fifth one; (ii) a contract in joint
        venture with Chiyoda Corporation for Ras Laffan Liquefied
        Natural Gas Co Ltd II for engineering, procurement and
        construction of the fifth liquefaction train with a
        capacity of 4.7 million tonnes/year at the Ras Laffan
        complex in Qatar. The contract confirms the success of
        the joint venture in the construction of the third and
        fourth train; and (iii) a contract in joint venture with
        Chiyoda and Mitsui &amp; Co Ltd, for the development of
        the Ras Laffan - Al Khaleej Gas Project Phase 1 project
        in Qatar for Exxon Mobil. This is an expansion of the
        contract acquired in 2003. 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 7.7 billion cubic meters/year;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in the Chemical complex
        area, a contract in a consortium with Yanes y Asociados
        for Superoctanos for the engineering, procurement and
        construction of a plant for the manufacture of iso-octane
        with a capacity of 380,000 tonnes/year. The plant will
        operate with a proprietary technology (Eni-Ecofuel) and
        provides for the conversion of the existing MTBE plant in
        Jose, Venezuela.</td>
    </tr>
</table>

<blockquote>
    <p><i>Business areas</i></p>
</blockquote>

<blockquote>
    <p>PLANTS</p>
</blockquote>

<p><i>Oil &amp; Gas</i> Snamprogetti is engaged in the execution
of complex and technologically advanced projects in the area of
plants for hydrocarbon production, natural gas treatment and
upgrading, (LNG, recovery and fractioning of natural gas
liquids). Based on the capital expenditure plans announced by oil
companies, Snamprogetti expects a strong growth in the demand for
services in these areas. In particular the segment of transport
and treatment of natural gas seems the most dynamic due to the
progressive globalization of demand and supply of natural gas.
Snamprogetti intends to consolidate its know-how in natural gas
treatment, where capital expenditure for expanding liquefaction
and regasification capacity of about 100-120 million tonnes/year
of LNG (equivalent to 140-170 billion cubic meters/year) are
expected in the next four years.</p>

<p><i>Refining</i> Snamprogetti is engaged in the segment of
conventional plants (grass root refineries and refining units)
and plants for the hydroconversion and hydrotreatment of heavy
residues and distillates. Snamprogetti intends to seize the
growth opportunities of the business of plants for heavy residue
conversion and production of clean fuels. Growth in this business
is supported by the wider availability of heavy crudes and by the
increasingly stringent environmental requirements on emissions
established worldwide. At Eni&#146;s Taranto refinery the first
demonstration plant with 1.2 KBBL/d capacity based on the Eni
Slurry Technology is nearing completion. This technology has a
high strategic value and aims at meeting the increasing demand
for upgrading of heavy crudes and non conventional crudes (tar
sands) and for conversion of refining residues (see:
&quot;Innovative Technologies&quot; below).</p>

<p><i>Chemical Complexes</i> Snamprogetti is engaged in the area
of plants for the conversion of natural gas (syngas, GTL,
hydrogen, ammonia, methanol and urea) and gas-to-chemicals
(ethylene and ethane derivatives). The demand for syngas is
markedly increasing for its application in the gas to liquids
field for the manufacture of high quality diesel fuel from
natural gas; in this segment, where syngas is a critical element,
Snamprogetti owns a proprietary technology through its affiliate
Haldor Tops&#248;e (Eni&#146;s interest 50%). Snamprogetti holds a
sound position in the design and construction of plants for the
production of nitrogen-based fertilizers and high-octane
additives for gasoline (MTBE, ETBE, TAME and
iso-octene/iso-octane), based on proprietary technologies.
Snamprogetti intends to strengthen its competitive position in
the segment of world scale plants for ammonia and urea
production, demand for which is supported by increasing
consumption in Asia, with capital expenditure in new capacity
concentrated in areas where gas has a competitive price (Middle
East, Africa, Latin America). Snamprogetti intends to seize the
opportunities for the construction of plants for the manufacture
of ethylene and petrochemical products from ethane, where
relevant capital expenditure is expected in areas where
feedstocks have a low price (especially the Middle East). In
cooperation with an international partner Snamprogetti is engaged
in the development of a technology for the manufacture of styrene
from ethane (see: &quot;Innovative Technologies&quot; below).</p>

<p><i>Energy</i> Snamprogetti is active in the design and
construction of combined cycle power stations also fired with
refinery residues (IGCC - Integrated Gasification Combined
Cycle). Snamprogetti intends to make use of the relevant know-how
it acquired in the construction of EniPower power stations
searching for new projects in Italy and outside Italy.</p>

<blockquote>
    <p style="page-break-before:always">FIELD UPSTREAM FACILITIES
    AND PIPELINES</p>
</blockquote>

<p>Snamprogetti is engaged in the design and construction of
pipelines for the transmission of hydrocarbons, 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. Snamprogetti
is developing new advanced technologies for high pressure
transport of natural gas aimed at the exploitation of reserves
located in remote areas (see: &quot;Innovative Technologies&quot;
below).</p>

<blockquote>
    <p>INFRASTRUCTURE</p>
</blockquote>

<p>Snamprogetti is active in the field of design and construction
of great infrastructure in Italy. In particular it is working on
the completion of the high speed/high capacity train tracks from
Milan to Bologna.</p>

<p>The Italian market for large infrastructure projects shows
interesting prospects after the approval of a 10-year plan for
the construction of public works 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 profitability) and the acknowledgement of the role of General
Contractor are the elements on which Snamprogetti bases its
efforts to win orders in this area, also in order to reduce the
cyclicality of the demand for services from the oil and
petrochemical industries.</p>

<blockquote>
    <p>AQUATER - ENVIRONMENTAL ACTIVITIES</p>
</blockquote>

<p>Snamprogetti, through its Aquater - Environmental Activities
division, is active in the field of projects for environmental
remediation and reclamation, protection of the soil and
integrated water systems in the framework of the optimization of
compatibility of industrial development and environmental
protection. The division provides a wide range of engineering
services for the soil, the environment and natural resources and
is active both as a consultant and as a main contractor in the
area of environmental remediation, reclaiming of plants, waste
management, water purification and civil works.</p>

<blockquote>
    <p>CEPAV Uno and CEPAV Due</p>
</blockquote>

<p>Eni holds interests in the CEPAV Uno (50.36%) and CEPAV Due
(52%) consortia that in 1991 signed two contracts with TAV SpA to
participate in the construction of the tracks for high speed/high
capacity trains from Milan to Bologna (under construction) and
from Milan to Verona (in the design phase).</p>

<p>As part of the project for the construction of the tracks from
Milan to Bologna, an addendum to the contract between CEPAV Uno
and TAV SpA was signed on June 27, 2003, redefining certain terms
and conditions. Works completed at the end of 2004 corresponded
to 60% of the total contractual price in line with the
contractual obligations; however, the existence of expand
description obstacles, made known to the client may contribute to
a delay in construction in 2005 and beyond.</p>

<p>As concerns the Milan-Verona portion, in December 2004 CEPAV
Due presented the final project, prepared in accordance with Law
No. 443/2001 on the basis of the preliminary project approved by
the CIPE.</p>

<p>The final project will be examined by TAV, presented to the
Conferenza dei Servizi and approved by CIPE for approval.</p>

<p>As concerns the arbitration procedure requested by the
consortium against TAV for the recognition of damage related to
TAV&#146;s belated completion of its tasks, in September 2004 a
technical survey was requested by the arbitration committee, that
is expected to be completed by mid-2005. The date for the final
decision was set at January 31, 2006.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Other Act">Table of Contents</a></h5>

<p><b>Other Activities</b></p>

<p>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.</p>

<p>Starting from January 2003 Eni&#146;s non-core activities have
been reorganized as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Syndial (former EniChem) was
        included in the &quot;Other Activities&quot; segment,
        which includes all Eni companies not included in specific
        segments (such as, among others, EniData, Sieco,
        Tecnomare, EniTecnologie, Eni Corporate University, AGI);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the new &quot;Corporate and
        financial companies&quot; segment was created, which
        includes Eni Corporate, Sofid and the financial companies
        formerly included in the &quot;Other activities&quot;
        segment.</td>
    </tr>
</table>

<p>In addition, following its merger into Eni in 2004, EniData
SpA, which managed Eni&#146;s IT activities, and was formerly
included in &quot;Other activities&quot;, is now included in
&quot;Corporate and financial companies&quot;.</p>

<p>On February 4, 2005 shareholders of Albacom (Eni SpA - 35%,
Mediaset SpA - 19.5%, Banca Nazionale del Lavoro SpA (BNL) -
19.5%) sold their interests in Albacom to British Telecom Plc
(BT). The contract provides also for the sale to BT by Eni and
Mediaset of a financial receivable (Eni&#146;s share is euro 87
million) acquired at nominal value from BNL related to a euro 250
million loan granted by BNL to Albacom and guaranteed by the
partners proportionally to their interest. BNL sold to BT the
residual amount of the loan. The consideration for the sale of
the interest and financial receivable, payable after 5 years, is
linked to a formula linked in turn to EBITDA achieved by Albacom
in the year closing on March 31, 2009 with a floor and a cap
charged with interest accrued. Given the objective uncertainties
of the situation, in the preparation of 2004 consolidated
financial statements the floor price was assumed, which
corresponds to euro 26 million for Eni&#146;s share, with the
recognition of a total charge, before tax, of euro 103 million,
for euro 41 million related to the interest (book value) and for
euro 62 million to a provision to the contingency reserve against
BNL&#146;s financial receivable of euro 87 million (see Item 5
&#150; &quot;Results of operations&quot;).</p>

<p>Management does not consider Eni&#146;s activities in these
areas to be material to its overall operations.</p>

<blockquote>
    <p><strong><i>Seasonality</i></strong></p>
</blockquote>

<p><em>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.</em></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="R&amp;D">Table of Contents</a></h5>

<p><font size="3"><b>Research and Development</b></font></p>

<p>Eni pursues technological excellence, based on the promotion
and dissemination of experience, expertise and know-how, as
essential factors in competitiveness, as well as economic and
environmental sustainability of its industrial activities.</p>

<p>In 2004, Eni consolidated the new model of technological
innovation that had been launched in 2002 to support growth and
continuing expansion. This entails the integration of R&amp;D
skills into so called &quot;technological platforms&quot; aimed
at greater effectiveness of innovation in complex projects
capable of generating a long-term competitive advantage.</p>

<p>As for the reorganization of Eni&#146;s R&amp;D structures in
2004 the R&amp;D department of the Exploration &amp; Production
Division operating in the &quot;development and production&quot;
area was transferred to EniTecnologie SpA. Eni also continued the
implementation of its human resources plan, aimed at increasingly
adapting available resources and capabilities to the requirements
of projects and businesses.</p>

<p>In 2004, Eni&#146;s expenditure for research and development
amounted to euro 257 million, of which euro 210 million were
expensed in the year (euro 238 million in 2003). At December 31,
2004, approximately 1,470 persons were employed in research and
development activities (1,400 at December 31, 2003).</p>

<p>Eni is aware of the key role innovative technologies play in
the future development of the hydrocarbon industry, it therefore
intends to develop key technologies that can contribute to the
establishment of competitive advantages and to the meeting of its
long to medium term growth and profitability objectives. Research
projects are selected according to a strict evaluation of their
return and are carefully monitored in light of the maximization
of the value of Eni&#146;s project portfolio.</p>

<p>In the next four years Eni intends to invest over euro one
billion in R&amp;D, balancing projects aimed at reaching
short-term objectives for business units with group-wide projects
aimed at strengthening medium to long-term business
sustainability. In particular the main focus of Eni&#146;s
R&amp;D lines are: (i) reserve replacement and reduction of
mineral risk; (ii) production from non conventional hydrocarbon
reserves and optimal management of reserves with high hydrogen
sulfide and sulfur content; (iii) expansion in the natural gas
market and utilization of associated gas and gas located in
remote areas; (iv) improvement of quality and performance of
fuels in light of the evolution of engines to increasingly
perfected and efficient systems with lower impact on air quality;
(v) efficient use of fossil fuels through an improvement in
refining yields and an optimal use of each fuel with reduced
environmental impact; and (vi) mitigation of greenhouse effect,
through the capture and geological sequestration of carbon
dioxide.</p>

<p>Eni intends to pursue global alliances in order to participate
in research projects that have a longer horizon than the
four-year plan. Following is a brief description of the main
techniques applied or under development.</p>

<blockquote>
    <p><i>Hydrocarbon exploration and production</i></p>
</blockquote>

<blockquote>
    <p>INNOVATIVE TECHNOLOGIES FOR SUBSOIL SURVEY</p>
</blockquote>

<p>In order to prepare a geological model of fields as near as
possible to reality aimed at the simulation and monitoring of
fields, Eni developed significant industrial applications of
highly innovative technologies. The main objective of these
technologies is the reduction of mineral risk and the
optimization of processes for extracting and recovering
hydrocarbons.</p>

<p>New and relevant developments have been reached in the 3D
Common Reflection Surface (CRS) Stack, Deep Migration Phase Shift
Plus Interpolation (PSPI) and Kirchoff True Amplitude (KTA)
proprietary technologies, which allowed to obtain significantly
higher results than conventional technologies. The relevant
improvement of the final seismic imaging and the higher density
and precision of information on the characteristics of subsoils
of fields (in Italy, the Gulf of Mexico, West and North Africa)
allowed to reduce the risk associated to the definition of
geological models in the field&#146;s development phasetime.</p>

<p>Significant developments and industrial applications derived
also from advanced technologies for modeling and monitoring
fields, such as: the integrated workflow for the characterization
and study of fractured systems, cross-well seismics, 4D or time
lapse seismics to monitor the behavior of producing fields over
time.</p>

<blockquote>
    <p>DRILLING OF &quot;ADVANCED WELLS&quot;</p>
</blockquote>

<p>Eni developed and applied at industrial level a series of
technologies that allow to drill highly complex wells with
greater operating efficiency. In particular, lean profile
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
and in environmental impact as it reduces the volume of rock
handled. Wells obtained with this technique are high quality and
low risk. The technique 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 &quot;Vertitrack&quot; (former SDD,
straight-hole drilling device) and &quot;Autotrack&quot;
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 and
Egypt) and entailed significant benefits such as higher safety
and higher savings of costs and time. 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&#176;).</p>

<p>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.</p>

<blockquote>
    <p>INNOVATIVE TECHNOLOGIES FOR THE TREATMENT OF LIQUIDS</p>
</blockquote>

<p>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 oils from layer waters which
allows to reduce the residual concentration of hydrocarbons in
water to less than 10 ppm, starting from an initial content of
over 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.</p>

<p>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 contexts 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.</p>

<blockquote>
    <p>MANAGEMENT OF HYDROGEN SULFIDE AND SULFUR</p>
</blockquote>

<p>The R&amp;D project for the optimal management of reserves
with high content of hydrogen sulfide and sulfur started in 2003
is continuing. The project aimed at developing innovative
technologies and/or advanced processes able to manage the
disposal and possible exploitation of high amounts of sour gas
and sulfur that are co-produced with hydrocarbons, while
respecting safety and the environment. In particular innovative
processes for the separation of hydrogen sulfide and its
conversion into plain sulfur and the storage and/or use of this
sulfur are in the development phase. In parallel innovative
processes are being studied for the reinjection of hydrogen
sulfide into the field and its monitoring.</p>

<blockquote>
    <p>ENI SLURRY TECHNOLOGY</p>
</blockquote>

<p>At Eni&#146;s Taranto refinery the testing is ongoing of a
Demonstration Plant with a 1.2 KBBL/d capacity based on Eni
Slurry Technology (EST) which, when demonstrated in 2005, will
provide Eni with an important competitive lever. This is a
strategically relevant technology because it allows a more
economic use of heavy crudes and the total transformation of a
barrel of oil into high quality fuels, avoiding the fatal
production of fuel oil, otherwise destined to be used in
electricity generation in Rankine cycles with low yield and high
environmental impact. The subtraction of fuel oil from
thermoelectric use will indirectly favor the penetration of
combined cycle gas fired plants with high efficiency and very low
environmental impact.</p>

<blockquote>
    <p>TRANSMISSION: TAP PROJECT</p>
</blockquote>

<p>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 consuming markets economically viable, thus favoring the sale
of gas produced by Eni&#146;s upstream activities. This project
was started in May 2003 and 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). In 2004, the construction phase started of an
experimental pilot pipeline with 48-inch diameter in the utmost
resistant steel, which will significantly contribute to reduce
the time necessary for the development of the technology. Within
this project also the construction of a 10-kilometer long portion
of pipe in X80 steel started.</p>

<blockquote>
    <p>CONVERSION OF NATURAL GAS INTO LIQUIDS</p>
</blockquote>

<p>Aim of the project is to exploit the relevant natural gas
reserves that are not extracted because too far from end markets,
through their conversion into high quality, synthetic oil
products totally sulfur and aromatic free. At Eni&#146;s
Sannazzaro pilot plant, research on production of wax by means of
Fischer-Tropsch technology was completed and validation
activities are underway.</p>

<blockquote>
    <p>INNOVATIVE FUELS: CLEAN DIESEL FUEL PROGRAM</p>
</blockquote>

<p>In 2004, Eni started to sell the new BluSuper gasoline, which
guarantees better engine performance and efficiency and reduces
polluting emissions, thanks to its high antidetonating power
resulting from a higher octane number (98 as compared to 95 of
ordinary gasolines) and its lack of sulfur. BluSuper complements
BluDiesel, sold since 2002, and is part of Eni&#146;s strategy to
improve the quality of its fuels, anticipating their compliance
with EU regulations (mandatory from 2009) and targeting its offer
to customers&#146; requirements, leveraging on Eni&#146;s
integrated refining-logistics-distribution system.</p>

<p>Feeding system, in particular in valves, allowing the engine
to maintain its performance over time.</p>

<p>Eni also continued R&amp;D activities of various process lines
aimed at improving the quality of its gasoil pool, among these a
process for oxidating desulfurization in order to manufacture
sulfur-free gasoil at competitive prices.</p>

<blockquote>
    <p>GHG PROGRAM: GEOLOGICAL SEQUESTRATION OF CARBON DIOXIDE</p>
</blockquote>

<p>R&amp;D in the field of environmental protection led to the
start-up of an integrated research program Green House Gases
(GHG), aimed at verifying the feasibility of the geological
sequestration of CO<sub>2</sub> in depleted fields and salty
aquifers. As for the former, the potentially employable fields
have been identified and characterized. The definition of a pilot
project will be completed in 2005. As part of the program, Eni
decided to participate in the second phase of the CO<sub>2</sub>
Capture project aimed at finding practical solutions for the
capture and sequestration of CO<sub>2</sub>.</p>

<blockquote>
    <p>HYDROGEN PROJECT</p>
</blockquote>

<p>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. In 2004, Eni started the construction of a pilot
plant for the development of a new type of multi-fuel reformer
based on catalytic oxidation with low contact time of liquid and
gaseous hydrocarbons. The aim is to produce hydrogen at
competitive costs also in medium to small sized plants with high
flexibility related to refinery feedstocks available.</p>

<blockquote>
    <p>STYRENE FROM ETHANE</p>
</blockquote>

<p>In cooperation with Dow Chemical Co Eni is developing an
innovative technology for the production of styrene monomer from
ethane and benzene, that, compared to conventional techniques
based on ethylene, will allow to reduce production costs, as
confirmed by the demonstration plant, and to free the
manufacturer from the need to locate the plant near a
petrochemical complex producing ethylene, obtaining also greater
flexibility.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Insurance">Table of Contents</a></h5>

<p><font size="3"><b>Insurance</b></font></p>

<p>Eni constantly assesses its exposure for the Italian and
foreign activities that are mainly covered through the Oil
Insurance Limited (&quot;OIL&quot;), 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.</p>

<p>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.</p>

<p>The level of insurance maintained by Eni is generally
appropriate for the risks of its businesses.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="EnvironMat">Table of
Contents</a></h5>

<p><font size="3"><b>Environmental Matters</b></font></p>

<blockquote>
    <p><b><i>Environmental Regulation</i></b></p>
</blockquote>

<p>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.</p>

<p>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.</p>

<p>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 remediate 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 remediation. This decree
became operational with Decree No. 471/1999 of the Ministry of
the Environment, which also defined: (i) limits for the
contamination of soils and underground waters; (ii) general
guidelines for remediation 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, willfully 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. 471/1999 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 388/2000 changed the regulations
concerning the remediation of polluted sites, easing the
discipline of crimes related to events prior to Legislative
Decree No. 22/1997 and imposing the remediation of sites where
industrial activity is ongoing. However, the remediation is to be
carried out provided that it does not involve a significant
disruption in operations; remediation costs can be amortized in
ten years.</p>

<p>In accordance with European guidelines, the protection from
water pollution was strengthened with Legislative Decree No.
152/1999 as completed by Decree No. 258/2000 and by Decree No.
367 of the Ministry of Environment. Decree No. 258/2000 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. 152/1999 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.</p>

<p>Law 372/1999 will gradually enter into force. This law, which
is related to the European Directive 96/61/CE (IPPC &#150;
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
&#150; refineries, chemical plants, power stations &#150; 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
obtained or are in the process of obtaining the EMAS
registration.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>HSE activity</i></b></p>
</blockquote>

<p>In an operating context requiring companies, in particular
those in the energy sector, to meet strict environmental
sustainability requirements and to reduce risks, Eni&#146;s
Health Safety Environment (HSE) activities are increasingly
oriented to the application and certification of rigorous HSE
management systems, in an effort to constantly improve their
performance through specific projects aimed at meeting the main
challenges of sustainability of Eni&#146;s operating sectors.</p>

<p>At the end of 2003, Eni issued a management system model (MSG)
based on a yearly cycle including planning, implementation,
control, review of results and definition of new objectives. In
2004, business units started implementing this management system
along with an audit program aiming at checking its functioning in
Eni&#146;s divisions and subsidiaries and at identifying any
measures for its improvement. Two preliminary audits were
performed in the Refining &amp; Marketing and Exploration &amp;
Production Divisions, which will lead to an audit system to be
extended to all the sectors.</p>

<p>In 2004, Eni&#146;s business units continued to obtain
certification of their management systems and operating units
according to the most stringent international standards. In 2004,
the Livorno refinery qualified under the EMAS standard and the
same procedure is underway at the Taranto refinery. Procedures
for the certification under ISO 14001 standard are underway and
are going to be extended to a number of foreign subsidiaries in
the Exploration &amp; Production sector.</p>

<p>In 2004, certifications reached a total of 133, with a 8.1%
increase on 2003.</p>

<p>The expansion of the certification activity of management
systems led to an increase in audit activities that in 2004
totalled 3,454, in line with the high levels of the past few
years.</p>

<p>Aware that training and professional qualification of the over
2,000 experts working in the HSE area are crucial for managing
activities, two projects were launched:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the HSE area professional
        model project, aimed at increasing the sharing of
        knowledge and improving the professional and managerial
        skills also through the development of internal knowledge
        management tools (HSENET);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the HSE training project,
        aimed at disseminating and integrating HSE culture in
        business strategies, involving professionals not directly
        operating in this sector.</td>
    </tr>
</table>

<p>In 2004, a total of 1,115,600 hours of HSE training were
provided to participants all over the world.</p>

<p>HSE expenditure in 2004 amounted to euro 1,131 million, with a
22% increase as compared to 2003. Expenditure directed to
environmental protection was 71.2% of the total, 26.1% was
directed to safety and the remaining 2.7% was directed to health
issues. Current environmental expenditure of euro 549.6 million
were mostly related to the intense program of site remediation
started in the past few years. See the chapter on HSE expenditure
of Eni&#146;s 2004 HSE Report for a detailed analysis of
expenditure by segment.</p>

<p>Due to the progressive implementation of the MSG in all
business units, the issues of safety, health and the environment
are becoming more and more integrated into the process of
business planning and development.</p>

<p>Following a careful analysis of specific HSE problems of the
different business areas an agenda for HSE issues by segment of
activity has been defined, which identifies the priorities to be
achieved in the short, medium and long-term and establishes
sector objectives.</p>

<p>In the area of safety, Eni is producing its best efforts in
improving workplace conditions by means of prevention and
protection programs aimed at reducing injury rates for employees
and contractors in general.</p>

<p>In 2004, injury rates deteriorated slightly as compared to
2003, interrupting the positive trend of preceding years.</p>

<p>In order to improve the level of preparedness to any possible
emergency, the emergency rooms operating in Milan and Rome were
further strengthened along with the management systems of
significant emergencies.</p>

<p>In the area of health, an important e-medicine project is
underway, aimed at improving the quality of the health support
system provided to workers and health operators in Italy and
abroad. This program aims at disseminating best practices in the
field of health in all operational contexts, keeping into account
specific cultural and geographic features. E-medicine is based on
the integrated development of a remote health service to
facilitate the treatment of pathologies and face health
emergencies, on the creation of a health card for all workers and
on an e-learning platform (continuous training for health
operators).</p>

<p>In the field of the environment, a priority issue is the
reduction of greenhouse gases produced by human activities, in
particular of carbon dioxide, that contribute to climate change.
This objective has become even more important after Russia
endorsed the Kyoto Protocol, which came into force in February
2005 (see below).</p>

<p>Further information on objectives and environmental
performances of Eni Group companies are included in Eni&#146;s
2004 Report on Health, Safety and the Environment.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Implementation of the Kyoto Protocol</i></b></p>
</blockquote>

<p>During 2002 the Kyoto Protocol was ratified by the EU and also
by Italy, with Law No. 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 a series
of instruments supplementary to internal measures. These are the
so-called flexible mechanisms, which allow an enterprise to carry
out projects in developing countries (CDM &#150; Clean
Development Mechanism) and in industrial countries with
transition economies (JI &#150; Joint Implementation) in order to
obtain emissions credits and to purchase emissions allowances
from other Annex I countries, that have a surplus of these
emissions (IET &#150; International Emission Trading). Emission
credits and purchased allowances may be used by an enterprise to
comply with its assigned emissions limit in other countries.</p>

<p>The National Action Plan for the reduction of greenhouse gas
emissions 2003-2010, sets out the allowances that each sector and
company will be issued; the Italian National Allocation Plan also
provides for recourse to flexible mechanisms in order to meet the
objectives set by the Kyoto Protocol. Eni has cooperated with the
authorities responsible for the preparation of the National
Allocation Plan. In fact, thanks to its presence in 70 countries,
Eni is an elective partner for carrying out CDM and JI projects
thus contributing to the Italian program of greenhouse gas
reduction. In December 2003 during the Conference of Parties to
the Kyoto Protocol &#150; COP9 &#150; Eni and the Ministry of the
Environment signed a Voluntary Agreement for using flexible
mechanisms, promoting CDMs and JIs and contributing to the
sustainable development of host countries.</p>

<p>A significant reduction potential can be derived from
production 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 sustainable development while reducing greenhouse gas
emissions. The validation of such projects as CDM and JI will
provide emission credits and facilitate the achievement of the
Italian reduction target, as set by the Kyoto Protocol. Eni
already carried out Zero Gas Flaring projects in Nigeria and
Congo while others are underway. In 2004, Eni prepared the
documentation required for the Kwale-Okpai combined cycle power
station in Nigeria to qualify as a Clean Development Mechanism
project, the power station utilizes the associated gas formerly
flared. Moreover, 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.</p>

<p>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 cap of emissions according
to the National Allocation Plan. In the first period emissions
exceeding the set cap, if not matched by equivalent emission
allowances, 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.</p>

<p>The best solutions for compliance with the Kyoto Protocol are
the use of low emission energy sources and the adoption of highly
efficient technologies. To address the greenhouse gas challenge,
Eni completed in 2004 a detailed analysis for defining its
strategy to respond to climate change and to participate in the
European emissions trading system, identifying a number of
projects for energy saving and emission reduction from its
plants.</p>

<p>To ensure comprehensive, transparent and accurate accounting
for GHG emissions, which is consistent over time, Eni introduced
a protocol for the accounting and reporting of greenhouse gas
emissions (GHG Accounting and Reporting Protocol), 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.</p>

<p>For safer and more accurate management of GHG emissions and
with a view to supporting accounting and certification of these
emissions, Eni decided to implement a commercial database to
facilitate evaluation of emissions in compliance with the
methodologies laid down in its own GHG Accounting and Reporting
Protocol.</p>

<p>Eni introduced a complete, accurate and transparent protocol
for 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,</p>

<p style="page-break-before:always">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.</p>

<p>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.</p>

<p>Eni identified a number of projects for energy saving and
emission reduction from its plants. Eni also evaluated the
opportunities derived from the Flexible Mechanisms envisaged by
the Kyoto Protocol; in particular it prepared the documentation
required to qualify as a Clean Development Mechanism project the
already constructed Kwale-Okpai combined cycle power station in
Nigeria, that utilizes the associated gas formerly flared. This
project is part of a voluntary agreement signed with the Italian
Ministry of the Environment in 2003 as one of the Flexible
Mechanisms available to companies under the Kyoto Protocol.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="RegEniBiz">Table of Contents</a></h5>

<p><font size="3"><b>Regulation of Eni's Businesses</b></font></p>

<blockquote>
    <p><b><i>Regulation of exploration and production activities</i></b></p>
</blockquote>

<p>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 &quot;Regulation
of the Italian Hydrocarbons industry&quot; and
&quot;Environmental Matters&quot; for a description of the
specific aspects of the Italian regulation and of environmental
regulation concerning Eni&#146;s exploration and production
activities.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><strong>Regulation of the Italian Hydrocarbons Industry</strong></p>
    <p><b><i>Overview</i></b></p>
</blockquote>

<p><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></p>

<p>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 &quot;Hydrocarbons Laws&quot;).</p>

<p>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 &quot;Authority Law&quot;), provided
for the establishment of a new regulatory body, known as the
Autorit&#224; per l&#146;Energia Elettrica e il Gas (the
&quot;Authority for Electricity and Gas&quot;), a 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 for Electricity and Gas is mainly
responsible for the public service of natural gas distribution
through urban networks.</p>

<p>Legislative Decree No. 164/2000 (&quot;Decree No. 164&quot;),
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
&quot;&#150; Natural Gas&quot; below.</p>

<p>Legislative Decree No. 32 of February 11, 1998 (&quot;Decree
No. 32&quot;) 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
&quot;&#150; Refining and Marketing of Petroleum Products&quot;
below.</p>

<p>Legislative Decree No. 443 of October 29, 1999 (&quot;Decree
No. 443&quot;) modified Legislative Decree No. 112 of March 31,
1998 (&quot;Decree No. 112&quot;), 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, while administrative decisions
concerning exploration and production of hydrocarbons on the
Italian mainland are made by the State in agreement with Regions.</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Exploration and
    Production</i></b></p>
</blockquote>

<p><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 Productive Activities
(formerly 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 until the
field depletes.</p>

<p><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.</p>

<p><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.</p>

<p>In 1994, the EU enacted a licensing directive (the
&quot;Licensing Directive&quot;), 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. Legislative Decree No. 625/1996 (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).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Gas &amp; Power</i></b></p>
</blockquote>

<blockquote>
    <p><i>Natural gas market in Italy</i></p>
</blockquote>

<p>The European Directive on Natural Gas was implemented into
Italian legislation through Legislative Decree No. 164 of May 23,
2000 (&quot;Decree No. 164&quot;), 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 EU 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 for Electricity and Gas. Third parties are allowed to
access transport infrastructure, storage sites, LNG terminals and
distribution networks on a regulated basis. 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 for
Electricity and Gas.</p>

<p>In particular 2004 was the end of the first three-year
regulated period for natural gas volumes input in the domestic
transmission network, in which the allowed percentage is 73% of
domestic consumption of natural gas. Eni&#146;s presence on the
Italian market complied with the limit.</p>

<p><i>Law No. 239 of August 23, 2004 on the restructuring of the
energy sector in Italy</i></p>

<p>This law provides for:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">a derogation to third party
        access granted to companies that make direct or indirect
        investments for the construction of new infrastructure or
        the upgrading of existing ones such as: (i)
        interconnections between EU Member States and national
        networks; (ii) interconnections between non-EU States and
        national networks for importing natural gas to Italy;
        (iii) LNG terminals in Italy; and (iv) underground
        storage facilities in Italy. Investing companies can
        obtain priority on the conferral of new capacity for a
        portion of not less than 80% of the new capacity
        installed and for a period of at least 20 years.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Paragraph 34 of the single
        article prohibits undertakings active in the field of
        natural gas and electricity with a concession for local
        public services or for the management of networks
        (excluding all sale activities) from operating in a
        competitive market for post-counter services, in the
        areas where they hold the concession for the duration of
        the concession, including through subsidiaries or
        affiliates.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Paragraph 51 cancels
        paragraph 5 of Article 16 of Legislative Decree No.
        164/2000, which obliged distribution companies to
        ascertain the existence of plants which do not only
        supply gas to productive units and safety of post-counter
        services.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Paragraph 69 provides the
        authentic interpretation of the rule introduced by
        Legislative Decree No. 164/2000 concerning the
        transitional regime of concessions for natural gas
        distribution activities in urban centers existing at June
        21, 2000, which allows for an anticipated repayment of
        the distribution service, despite being provided through
        a bid procedure rather than direct entitlements. This law
        changes the provisions defined by Legislative Decree No.
        164/2000 by: (i) extending to December 31, 2007, the
        transitional period for the continuation of existing
        concessions, with a possible extension of one further
        year when public interest is considered important by
        local authorities; and (ii) cancelling the adding up of
        possible extensions, as provided for by Legislative
        Decree No. 164/2000, in case of certain conditions
        (business restructuring, size parameters, shareholding
        composition). The end of concessions awarded on the basis
        of a bid procedure remains set at December 31, 2012.</td>
    </tr>
</table>

<blockquote>
    <p>&nbsp;</p>
    <p><i>Natural gas market in Europe - Directive 2003/55/CE</i></p>
</blockquote>

<p>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.</p>

<p>The most relevant aspects of the directive are the following:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">member States must designate
        an operator for transmission, distribution and storage
        systems of natural gas and LNG;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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 &quot;functional separation&quot;; 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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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. In Italy the rules and
        modes of operation of the transmission network are
        established by the Authority for Electricity and Gas in
        implementation of Legislative Decree No. 164/2000,
        through Decision No. 137/2002. On the basis of these
        criteria natural gas transmission companies prepare
        network codes that need to be approved by the Authority
        for Electricity and Gas (see Section &quot;Decision No.
        137/2002&quot; below);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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; in Italy this
        derogation is allowed by Law No. 239/2004 &#150; (see
        Section &quot;Law No. 239 of August 23, 2004&quot;
        above);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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 as follows: July 1, 2004 for all
        non-household customers and July 1, 2007 for all
        customers.</td>
    </tr>
</table>

<p>Eni does not expect any major impact on its activity in the
natural gas business deriving from the mere implementation of
Directive 2003/55/CE into the Italian body of laws.</p>

<blockquote>
    <p><i>Directive 2004/67/CE</i></p>
</blockquote>

<p>Directive 2004/67/CE concerning measures to safeguard security
of natural gas supply was approved on April 26, 2004; the new
Directive asked Member States to implement measures assuring
natural gas supply, with particular attention to residential
uses. </p>

<p>Law No. 62 of April 18, 2005, &quot;Legge comunitaria
2004&quot; defined the criteria that delegate to the Government
the formulation of legislative decrees implementing the
Directives 2003/55/CE and 2004/67/CE.</p>

<blockquote>
    <p><i>Natural Gas prices</i></p>
</blockquote>

<p>Prices of natural gas sold to industrial and thermoelectric
customers as well as to wholesalers 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 for Electricity and Gas holds a power of
surveillance on this matter (see below). See below for a
discussion of natural gas prices of sales of natural gas to
residential and commercial customers which were not eligible
customers until December 31, 2002.</p>

<blockquote>
    <p style="page-break-before:always"><i>Distribution and sale
    of natural gas to residential and commercial customers</i></p>
</blockquote>

<p>Under Law No. 481/1995 (establishing the Authority for
Electricity and Gas) and Legislative Decree No. 164/2000, the
Authority for Electricity and Gas retains the power of
establishing criteria and parameters to be homogeneously applied
in Italy in the determination of natural gas distribution tariffs
and selling prices to residential and commercial customers.</p>

<p>With Decision No. 237 dated December 28, 2000 as amended, the
Authority for Electricity and Gas determined tariff criteria for
natural gas distribution activity for the first regulated period
ending on September 30, 2004. Tariffs are determined so that
annual revenues from natural gas distribution activity cover
operating costs and the remuneration of capital employed and are
adjusted yearly according to the price cap method based on
parameters and formulas determined by the Authority for
Electricity and Gas. Capital employed is determined by applying a
parameter-based method or, alternatively, a method of revalued
historical cost for those companies that published audited
financial statements starting with the fiscal year ended before
January 1, 1991 (which include Italgas). With Decision No. 170 of
September 29, 2004 the Authority for Electricity and Gas defined
gas distribution tariffs for the second regulated period from
October 1, 2004 to September 20, 2008, setting at 7.5% the rate
of return on capital employed of distribution companies, as
compared to the 8.8% rate set for the preceding regulated period.
The rate of productivity recovery &#150; one of the components of
the annual adjustment mechanism of tariffs &#150; was set at 5%
of operating expenses and amortization charges (as compared to
the 3% rate applied to total expenses and charges in the
preceding regulated period). The Regional Administrative Court in
a decision published on February 16, 2005, cancelled the
Authority&#146;s decision. The latter filed a claim with the
Council of State, that, on March 8, 2005 suspended the Regional
Administrative Court&#146;s decision while waiting for the
judgment.</p>

<p>As concerns sale of natural gas to residential and commercial
customers, the Decree of the President of the Council of
Ministers of October 31, 2002 conferred to the Authority for
Electricity and Gas the powers to: (i) define, calculate and
update and gas selling prices also after the opening up of
markets set at January 1, 2003 for customers who were
not-eligible customers until December 31, 2002; (ii) define
methods for updating selling prices with reference to variable
costs that minimize the impact of inflation; 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 selling prices to the various groups of users.
Consistently with this decree, the Authority for Electricity and
Gas: (i) with Decision No. 195 of November 29, 2002 changed the
methods for periodically updating selling prices for natural gas
in connection with changes in international prices of crude oil
and refined products. 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
until December 31, 2002 until the customer accepts a new contract
offer. In addition, the Authority for Electricity and Gas decided
that these companies can propose their own new contract offers
determined according to the criteria established by the Authority
for Electricity and Gas, 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).</p>

<p>The Authority for Electricity and Gas with Decision No. 138 of
December 4, 2003, as modified by Decision No. 27/2004, introduced
two provisions intended for end customer who were non-eligible
customers until December 31, 2002 and to end customers that have
not exercised their capacity to enter new contracts:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">a compensation in favor 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.</td>
    </tr>
</table>

<p>Decision No. 138/2003 sets at July 31, 2005 the date before
which the Authority for Electricity and Gas will control the
degree of competition on the market for 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
choose to sign new contracts).</p>

<p>In order to dampen the inflationary pressures related to the
increase in international oil prices in the second half of 2004,
the Authority for Electricity and Gas, with Decision No. 248 of
December 29, 2004, changed the indexing mechanism concerning the
raw material component in tariffs paid by end customers that were
non-eligible customers until December 31, 2002 according to
Decision No. 195/2002. The decision introduced the following
changes: (i) establishment of a cap set at 75% for the changes in
the raw material component if Brent prices fall outside the 20-35
dollar/barrel range; (ii) change of the relative weight of the
three products making up the reference index of energy prices
whose variations &#150; when higher or lower than 5% as compared
to the same index in the preceding period &#150; determine the
adjustment of raw material costs; (iii) substitution of one of
the three products included in the index (a pool of crudes) with
Brent crude; and (iv) reduction in the value of the variable
wholesale component of the selling price by euro 0.25 cents per
cubic meter in order to foster the negotiation of prices
consistent with average European prices in gas import contracts
starting from October 2005. Decision No. 248/2004 also imposes
the obligation to provide new price arrangements consistent with
the said decision on the sale of natural gas to wholesalers under
contracts that do not contain price adjustment clauses in case of
changes in the adjustment rules of supply conditions. Eni filed a
claim against Decision No. 248/2004, requesting its suspension,
given the serious economic and financial prejudice deriving from
the application of the decision. On January 25, 2005 the Regional
Administrative Court of Lombardia accepted the claim thus
suspending the Authority's decision and set to June 2005 the
hearing for the settlement of the claim. On March 22, 2005 the
Council of State rejected the Authority&#146;s claim requesting
the annulment of the suspension. Eni&#146;s management expects
that the changes introduced by Decision No. 248/2004, if
implemented as drafted, will have a material impact on operating
income for 2005. See &quot;Item 3 &#150; Risk Factors&quot;.</p>

<blockquote>
    <p style="page-break-before:always"><i>Decision No. 188/2004
    of the Authority for Electricity and Gas</i></p>
</blockquote>

<p>With Decision No. 188/2004 of October 27, 2004, the Authority
required natural gas importing operators, among which Eni, to
give information concerning: (i) dates and supplier for each
contract; (ii) FOB purchase prices; (iii) updating price formulas
and other details; and (iv) volumes and FOB purchase average
prices on a monthly basis for each supplying contract relating to
the period October 2002-September 2004. </p>

<p>Eni appealed this decision with the Regional Administrative
Court that with Decision No. 2962/2004 on December 1, 2004
partially accepted Eni&#146;s appeal suspending the obligation on
part of Eni to communicate: (i) dates and supplier for each
contract; and (ii) FOB purchase prices. On March 22, 2005, this
obligation was definitely cancelled by the Regional
Administrative Court with Decision No. 89/2005.</p>

<p>According to the Regional Administrative Court&#146;s
decision, Eni gave the Authority information about updating price
formulas and other details about supplying contracts in order to
comply with the Authority&#146;s requirement and to collaborate
in the process opened by the Authority to update the methodology
of indexation of natural gas prices to the raw material component
of the price formulas of natural gas sale contracts. This process
was opened with Decisions No. 178/2004 and finalized with
Decision No. 248/2004 (See above for a discussion of Decision No.
248/2004).</p>

<p>Taking into account the Regional Court&#146;s decision, Eni
gave the Authority only part of the information required; in
particular information concerning volumes supplied and monthly
FOB purchase average prices was not provided because their
availability allow for the calculation of those pieces of
information the presentation of which was annulled by the
Regional Administrative Court&#146;s decision.</p>

<p>On June 16, 2005, with Decision No. 107/2005 the Authority
started a formal inquiry against Eni and other importing
operators stating Eni&#146;s failure to comply with the Authority
information requirement. The Authority may impose a fine on Eni.</p>

<blockquote>
    <p><i>Inquiry on the quality of distribution services</i></p>
</blockquote>

<p>On May 17, 2005, the Authority for Electricity and Gas started
an inquiry on the alleged violation of its decisions concerning
the quality of distribution services (Decision No. 168/2004) and
the minimum contractual conditions of sale service (Decision No.
229/2001) by Italgas and Italgas Pi&#249; (from January 1, 2005
merged into Eni SpA). In particular the inquiry intends to
clarify:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for Italgas Pi&#249; from
        September to December 2004, belated emission of invoices
        as compared to periods set by the Authority for
        Electricity and Gas and defaults in communication
        concerning postponement of payments recognized to
        customers which could represent a violation of the
        minimum quality standard imposed by the Authority for
        Electricity and Gas;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for Italgas from August 26
        to September 5, 2004 wrong statements on the number of
        services requested by Italgas Pi&#249; customers (new
        linkages and the like).</td>
    </tr>
</table>

<blockquote>
    <p><i>Inquiries by the Antitrust Authority</i></p>
</blockquote>

<p><i>Sale contracts outside Italy</i> With a decision of
November 21, 2002, the Antitrust Authority judged that Eni had
violated competition rules by entering in 2001 into contracts
outside Italy with other operators importing into Italy the
supplied volumes and thus limiting third party access to natural
gas transport infrastructure. The Antitrust Authority considered
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 single operators into the national
network. With the same decision and taken into account 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 &quot;implement measures
to eliminate infringing behaviors with specific attention to the
upgrading of the transmission network or equivalent
actions&quot;.</p>

<p>On June 18, 2004, Eni submitted to the Antitrust Authority a
proposal entailing the sale to third parties of a total of 9.2
billion cubic meters of natural gas in the four-thermal year
period starting in October 1, 2004 through September 30, 2008,
corresponding to 2.3 billion cubic meters for each thermal year,
before such natural gas enters the national transmission network
at Tarvisio. With a decision of June 24, 2004, the Antitrust
Authority judged this proposal adequate to end the effects of the
violation of competition rules highlighted in the November 21,
2002 decision. With the decision of October 7, 2004 that closed
the above mentioned procedure, the Antitrust Authority
acknowledged that Eni has taken proper measures for executing the
decision of November 21, 2002 by signing gas release contracts.
However, it fined Eni euro 4.5 million alleging that Eni had
complied belatedly with the Antitrust Authority&#146;s
indications. On December 6, 2004, Eni filed a claim with the
Regional Administrative Court of Lazio against this decision and
requesting the annulment of the fine that was however recorded in
Eni&#146;s accounts. In May 2005 the Regional Administrative
Court repealed this claim. Eni paid the fine imposed on it by the
Antitrust Authority.</p>

<p>A claim filed by Eni with the Regional Administrative Court of
Lazio against the decision of November 21, 2002 is still pending.</p>

<p><i>Trans Tunisian Pipeline Co</i> On February 1, 2005, the
Antitrust Authority notified Eni of the opening of a procedure,
according to Article 14 of Law No. 287/1990, to ascertain an
alleged abuse of dominant position. The events leading to the
opening of the procedure relate to behavior of Trans Tunisian
Pipeline Co Ltd (TTPC), wholly owned by Eni, concerning its
decision to consider expired certain ship-or-pay contracts signed
on March 31, 2003 with four shippers awarded capacity on
TTPC&#146;s pipeline due to the non-occurrence of suspensive
clauses, and therefore not to proceed to an upgrade of the
pipeline before 2007.</p>

<blockquote>
    <p style="page-break-before:always"><i>Joint official inquiry
    of the Authority for Electricity and Gas and the Antitrust
    Authority</i></p>
</blockquote>

<p>On June 17, 2004, the Authority for Electricity and Gas and
the Antitrust Authority decided to close their joint survey into
the natural gas market started February 20, 2003. Both
Authorities consider the overall level of competition of the
Italian natural gas market unsatisfactory. According to both
Authorities one of the main reasons for this is the vertical
integration of Eni in the supply and transport of gas,
notwithstanding the antitrust ceilings introduced that limit
until 2010 the volumes of natural gas input to consumption in
Italy.</p>

<p>Among the possible measures which in their opinion could
enhance the level of competition in the natural gas market are:
(i) the upgrading by Eni of infrastructure for the import of
natural gas from Russia (TAG) and Algeria (TTPC); (ii) the
establishment of an independent transmission system operator
(ISO) that owns and operates both the national high pressure
transport grid and the storage assets of natural gas; (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; and (iv) the
sale by Eni to third parties of adequate gas volumes at a price
near to the supply cost without control on the recipients<font
color="#000080">.</font></p>

<blockquote>
    <p><i>Transport</i></p>
</blockquote>

<p><i>Transport tariffs</i> With Decision No. 120 of May 30,
2001, the Authority for Electricity and Gas 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 started on
October 1, 2001 (the &quot;thermal year&quot; goes from October 1
to September 30). At the beginning of each calendar year
transport companies submit the tariff proposal to the Authority
for Electricity and Gas which in turn approves or rejects the
proposal of transport companies.</p>

<p>Criteria established by the Authority for Electricity and Gas
provide for a cap on revenues from transport and dispatching
activity (&quot;allowed revenues&quot;) 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. 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 for Electricity
and Gas 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 for Electricity and Gas. 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 expenditure 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
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.</p>

<p>On May 2, 2005, the Authority for Electricity and Gas
published the Consultative Document defining proposals about
transportation tariffs for the second regulatory period (October
1, 2005-September 30, 2008).</p>

<p><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 for Electricity and Gas 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. 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.</p>

<p>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.</p>

<p>Eni filed a claim against Decision No. 137/2002 with the
Regional Administrative Court of Lombardia, that was partially
accepted with a decision of December 2004. The Authority for
Electricity and Gas filed a counter claim against this decision
with the Council of State and informed Eni on February 19, 2005.</p>

<p><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; until it reaches the 20% maximum
interest allowed. For a discussion of the expected impact of this
sale, see &quot;Gas &amp; Power &#150; Transmission, Dispatching
and Regasification Assets&quot; above. In 2004 Eni sold 9.054% of
the share capital of Snam Rete Gas, thus reducing its interest to
50.06%.</p>

<p>On February 18, 2005, the Council of Ministers, on proposal of
the Ministry of Economy and Finance, presented a Draft Decree of
the President of the Council of Ministers which defined criteria
and modes for the divestment of the interest held by Eni in Snam
Rete Gas SpA (50.06%). The special powers of the Ministry of
Economy and Finance provided for by the regulations on the
divestment of interests held by the Italian Government will be
included in the by-laws of this company. After the publication of
the relevant Decree, Eni will continue the procedure for the sale
of Snam Rete Gas SpA shares until Eni&#146;s interest reaches 20%
before July 1, 2007.</p>

<blockquote>
    <p><i>Preliminary investigation on the management and
    operation of the Panigaglia LNG regasification terminal</i></p>
</blockquote>

<p>The Authority for Electricity and Gas with Decision No. 204 of
November 18, 2004, started a preliminary investigation on the
management and operation of Eni&#146;s Panigaglia LNG
regasification terminal and on LNG supplies to the Italian market
in the thermal years from 2001 to 2004 in order to ascertain any
behavior infringing the rules of equal access and equal
conditions and neutrality in providing the regasification
services.</p>

<blockquote>
    <p><i>Electricity generation</i></p>
</blockquote>

<p>Law No. 239/2004 changed the criteria for becoming an eligible
customer that had been set in Legislative Decree No. 79/1999 that
had opened up the electricity market and set at July 1, 2007 the
final opening up of the domestic electricity market for all
customers. From July 1, 2004 only non household customers are
eligible customers and from September 28, 2004 all final
customers (individual or associated) that in the preceding year
had consumption destined to industrial activities and to the
public administration activity exceeding 0.05 GWh.</p>

<p>The Authority for Electricity and Gas completed the definition
of rules regulating the Electricity exchange set up from April 1,
2004 and introduced: (i) an economic management of dispatching
which allows the selection of plants for the supply of
electricity based on the criteria of the Market Clearing Price
which is defined, for each hour, as the price set at the
intersection of the demand and supply curve and which is provided
to all the plants scheduled. Furthermore, with Decision No.
253/2004 the Authority for Electricity and Gas approved the
regulation of dispatching for 2005 that was presented by the
Gestore della Rete di Trasmissione Nazionale SpA
(&quot;GRTN&quot;); (ii) the regulations for the control of
market power that aims at avoiding speculations by operators.
Among other things, it provides for tenders managed by the Single
Buyer for the signing of financial contracts (the Contract for
Differences) with eligible customers. Under these contracts the
supplier receives a premium in euro/megawatt and if the Market
Clearing Price is higher than the contract price (the Strike
Price), the supplier pays the difference to the Single Buyer;
(iii) a return on production capacity provided to the national
electric system in case of seasonal criticalities, in
implementation of Legislative Decree No. 379 of December 19,
2003, that introduced the remuneration of electricity generation
capacity in order to guarantee that domestic demand is met with
the required reserve margins; (iv) a reorganization of time
frames that represent the main reference for the determination of
selling prices in bilateral contracts, as per Decisions No.
5/2004 and 235/2004 (they are now more homogenous and consistent
with the dynamics of national consumption; the previous ones
provided for higher tariffs in winter months); and (v) a fee for
the assignment of rights of use of transmission capacity (CCT)
and an unbalancing charge (in case of differences between the
produced and scheduled volume of energy for every fifteen
minutes). In 2004, together with other operators, EniPower and
EniPower Trading (its subsidiary involved in the electricity sale
to &quot;eligible customers&quot;) filed a claim against Article
42 of Decision No. 48/2004 and subsequent related decisions for
the aspects concerning CCT with the Regional Administrative Court
of Lombardia. The merits of the claim were discussed on June 14,
2005, together with the Decision 237/2004 which also established
for 2005 the CCT. The Regional Administrative Court rejected the
claims, but motives have not yet been published. The two
companies will probably lodge an appeal with the Council of
State.</p>

<p>With Decision No. 254 of December 30, 2004, the Authority for
Electricity and Gas introduced mechanisms that aim to control
market power in order to avoid unjustified price increases on the
Electricity Exchange (so-called IPEX) determined by dominant
positions of producers. In case of any anomalous occurrence, as
shown by indicators, the remuneration of electricity sold by the
infringing producer will be automatically changed and will not
correspond to the marginal price at the IPEX, but to the prices
offered by this producer at each individual plant. Furthermore,
for the following 30 days, said producer will be obliged to sell
all its production on the IPEX at a constant price, thus changing
its offer strategies. After claims filed by other operators, the
relevant sanctions have recently been annulled by the Regional
Administrative Court of Lombardia.</p>

<p>Article 11 of Legislative Decree No. 79/1999 obliges importers
and producers of electricity from non renewable sources exceeding
100 gigawatthour/year to inject a given proportion of electricity
from renewables into the power grid or to purchase equivalent
Green Certificates (renewable obligation). Green Certificates are
issued by the Italian System Operator for the first eight years
of operation of renewable-energy power plants. The share of
electricity produced from renewable sources has been set at 2% of
electricity produced from non renewable sources. Legislative
Decree No. 387/2003 increased this amount by 0.35 percentage
points per year from 2004 to 2006 and attributed to the Minister
of Productive Activities the power to establish further increases
of this minimum amount for the 2007-2009 and 2010-2012 periods,
in agreement with the Minister of the Environment and the
Conferenza Unificata. The Minister was expected to issue the
decree containing the relevant thresholds before December 31,
2004 and 2007, respectively, but at the moment operators are
still waiting for the decree concerning the 2004-2007 period.
This obligation may not be applied to the electricity produced
through cogeneration plants.</p>

<p>The Authority for Electricity and Gas with Decision No.
42/2002, amended by Decision No. 71/2004 and No. 201/2004,
defined the conditions for the acknowledging of co-generation to
certain forms of electricity production. A decree of the Minister
of Industry of November 11, 1999 stated that producers are to
file a request for this acknowledgement to the Gestore della Rete
di Trasmissione Nazionale SpA (&quot;GRTN&quot;). With a judgment
of April 12, 2005, the Regional Administrative Court of Lombardia
rejected the claim filed by EniPower against relevant criteria
set out by the Authority for Electricity and Gas, under which
electricity production is deemed as &quot;cogenerative&quot; (and
may thus enjoy the legislative benefits), as well as the decision
of the GRTN that denied the nature of cogeneration production for
the combined production of electricity and heat of Eni&#146;s
power stations at Livorno, Ravenna and Brindisi. Presently, the
rejection of such claim by the Regional Administrative Court
obliges the company to purchase so called green certificates to
cover production from these plants in 2003; however, EniPower is
currently evaluating the opportunity to appeal the Regional
Administrative Court&#146;s decision to the Council of State.</p>

<blockquote>
    <p><i>Storage of natural gas</i></p>
</blockquote>

<p>The right to store natural gas in depleted fields in Italy is
exercised pursuant to concessions granted by the Ministry of
Productive Activities (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 at most
two ten-year extensions if they complied with the storage
programs and other obligations deriving from said concession as
per Law No. 239/2004. 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.</p>

<p>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 is 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 for Electricity and Gas 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 for Electricity and Gas has to
establish the criteria and priority of access most storage
operators have to include in their storage codes.</p>

<p>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.</p>

<p>With Decision No. 26 dated February 27, 2002, the Authority
for Electricity and Gas determined tariff criteria for natural
gas storage for the first regulated period (from April 1, 2002 to
March 31, 2006) 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 for Electricity and Gas 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 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 for Electricity and
Gas.</p>

<p>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.</p>

<p>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 for
Electricity and Gas in its periodic statements concerning the
determination of modulation obligations for seasonal consumption
peaks.</p>

<p>On March 14, 2002, the Authority for Electricity and Gas
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 favors
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.</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Refining and
    Marketing of Petroleum Products</i></b></p>
</blockquote>

<p><i>Refining</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.</p>

<p><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. 112/1998 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 of 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.</p>

<p><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 &quot;vertical
agreements&quot; on economic relations between operators in this
area. Management believes that these developments will not have
any significant impact on Eni&#146;s operations.</p>

<p><i>Compulsory Stocks</i> According to Legislative Decree of
January 31, 2001, No. 22 (&quot;Decree 22/2001&quot;) enacting
European Directive No. 98/1993 (which regulates the obligation of
member states to keep a minimum amount of stocks of crude oil
and/or petroleum products) compulsory stocks, must be at least
equal to the quantities required by 90 days of consumption of the
Italian market (net of oil products obtained by domestically
produced oil). In order to satisfy the agreement with the
International Energy Agency (Law No. 883/1977), Decree 22/2001
increased the level of compulsory stocks to reach at least 90
days of net import, including a 10% deduction for minimum
operational requirements. Decree 22/2001 states that compulsory
stocks are determined each year by a decree of the Minister of
Productive Activities based on domestic consumption data of the
previous year, defining also the amounts to be held by each oil
company on a site-by-site.</p>

<p>Decree No. 32 of February 11, 1998 established an entity
responsible for the maintenance and management of this compulsory
stock 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 Agency&#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.</p>

<p>In 2004, Eni owned on average 7.0 million tonnes of oil
products inventories, of which 5.0 million relating to
&quot;compulsory stocks&quot; as required by Italian law. The
balance is composed of oil products which cannot be used to meet
compulsory stock requirements; that is 1.0 million tonnes related
to operating inventories (including 0.2 million tonnes of oil
products contained in facilities and pipelines), 0.8 million
related to oil products contained in ships and 0.2 million
related to specialty products.</p>

<p>Eni&#146;s compulsory stocks are held in terms of crude oil
(34%), light and medium distillates (38%), fuel oil (21%) and
other products (7%). They are located throughout the Italian
territory in both refineries (73%) and storage sites (27%).</p>

<p>Eni also held natural gas for strategic reserve purposes in
its storage business, as established by Decree No. 164. The
strategic reserves of gas are defined as &quot;stock destined to
meet situations of deficit/decrease of supply or crisis of the
gas system&quot;. The Ministry of Productive Activities
determines quantities and usage criteria of such reserves. As of
December 31, 2004 Eni held approximately 180 billion standard
cubic feet of strategic reserves of natural gas.</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Competition</i></b></p>
</blockquote>

<p>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 (&quot;Article 81&quot; and &quot;Article 82&quot;,
respectively being the result of the new denomination of former
Articles 85 and 86) and EU Merger Control Regulation No. 4064 of
1989 (&quot;EU Regulation 4064&quot;). 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:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">requiring that an
        infringement be brought to an end,</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">ordering interim measures,</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">accepting commitments,</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">imposing fines, periodic
        penalty payments or any other penalty provided for in
        their national law.</td>
    </tr>
</table>

<p>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; and (iv) find that Articles 81 and 82 of the Treaty
are not applicable to an agreement for reasons of Community
public interest.</p>

<p>Eni is also subject to the competition rules established by
the Agreement on the European Economic Area (the &quot;EEA
Agreement&quot;), 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.</p>

<p>In addition, Eni&#146;s activities are subject to Law No. 287
of October 10, 1990 (the &quot;Antitrust Law&quot;). 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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Property plant &amp; eq">Table of Contents</a></h5>

<p><font size="3"><b>Property, Plant and Equipment</b></font></p>

<p>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 &quot;Exploration
&amp; Production&quot; above for a description of Eni&#146;s
reserves and sources of crude oil and natural gas.</p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Org Struct">Table of
Contents</a></h5>

<p><font size="3"><b>Organizational Structure</b></font></p>

<p>The significant subsidiaries, associated undertakings and
joint ventures of the Eni Group controlled directly or indirectly
by Eni at December 31, 2004 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.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="70%"><b><u>Company/Undertaking</u></b></td>
        <td valign="top" width="24%"><b><u>Country of
        Incorporation</u></b></td>
        <td valign="top" width="6%"><p align="center"><b><u>%</u></b></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Exploration &amp;
        Production</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Stoccaggi Gas Italia SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Oil Algeria Ltd</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Angola Exploration BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Caspian Sea BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Congo SA</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Daci&#243;n BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Exploration BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Indonesia Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Iran BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Karachaganak BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Lasmo Plc</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni LNS Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni North Africa BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Oil Ecuador BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Petroleum Co Inc</td>
        <td valign="top" width="24%">USA</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni UK Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Ieoc Production BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">NAOC Nigerian Agip Oil Co
        Ltd</td>
        <td valign="top" width="24%">Nigeria</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Norge A/S</td>
        <td valign="top" width="24%">Norway</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Gas &amp; Power</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Snam Rete Gas SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Societ&#224; Italiana per il Gas
        pA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Distribuidora de Gas Cuyana
        SA</td>
        <td valign="top" width="24%">Argentina</td>
        <td valign="top" width="6%"><p align="center">46</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Gas Brasiliano Distribuidora
        SA</td>
        <td valign="top" width="24%">Brazil</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Greenstream BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">75</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Inversora de Gas Cuyana SA</td>
        <td valign="top" width="24%">Argentina</td>
        <td valign="top" width="6%"><p align="center">76</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Tig&#225;z Rt Tisz&#225;nt&#250;li
        G&#225;zszolg&#225;lt&#225;t&#243; R&#233;szv&#233;nyt&#225;rsas&#225;g</td>
        <td valign="top" width="24%">Hungary</td>
        <td valign="top" width="6%"><p align="center">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">EniPower SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Refining &amp; Marketing</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">AgipRete SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">AgipFuel SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Ecofuel SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Portugal Investment SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Deutschland GmbH</td>
        <td valign="top" width="24%">Germany</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Ecuador SA</td>
        <td valign="top" width="24%">Ecuador</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Espa&#241;a SA</td>
        <td valign="top" width="24%">Spain</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Agip Fran&#231;aise SA</td>
        <td valign="top" width="24%">France</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">American Agip Co Inc</td>
        <td valign="top" width="24%">USA</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Petrochemicals</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Dunastyr Polystyrene
        Manufacturing Co Ltd</td>
        <td valign="top" width="24%">Hungary</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa Benelux SA</td>
        <td valign="top" width="24%">Belgium</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa Elastom&#232;res
        France SA</td>
        <td valign="top" width="24%">France</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Polimeri Europa UK Ltd</td>
        <td valign="top" width="24%">the United Kingdom</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Oilfield Services
        Construction and Engineering</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Saipem SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">43</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Snamprogetti SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">CEPAV (Consorzio Eni per
        l&#146;Alta Velocit&#224;) Uno</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Saipem SA</td>
        <td valign="top" width="24%">France</td>
        <td valign="top" width="6%"><p align="center">43</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Other Activities</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Syndial SpA - Attivit&#224;
        Diversificate</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">EniTecnologie SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Sieco SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Tecnomare - Societ&#224; per lo
        Sviluppo delle Tecnologie Marine SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">57</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><i>Corporate and financial
        companies</i></td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni International BV</td>
        <td valign="top" width="24%">the Netherlands</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Eni Coordination Center SA</td>
        <td valign="top" width="24%">Belgium</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Societ&#224; Finanziaria Eni SpA
        - Enifin</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">Societ&#224; Finanziamenti
        Idrocarburi - Sofid-SpA</td>
        <td valign="top" width="24%">Italy</td>
        <td valign="top" width="6%"><p align="center">100</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 5">Table of Contents</a></h5>

<p><font size="4"><b>Item 5. OPERATING AND FINANCIAL REVIEW AND
PROSPECTS</b></font></p>

<blockquote>
    <p><i>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></p>
</blockquote>

<p><font size="3"><b>Executive Summary</b></font></p>

<p>In 2004, Eni&#146;s net income totalled euro 7.3 billion, an
increase of euro 1.7 billion over 2003 (up 30.2%) due mainly to a
positive operating income performance (up euro 2.9 billion)
especially in its core oil business. Eni&#146;s operating income
of euro 12.5 billion is euro 1.7 billion higher than the previous
record of 2000. In 2004, Eni&#146;s operating income was also
benefited by the change in the petrochemical business which
generated income after many years of losses.</p>

<p>Leverage<a href="#(12)"><sup>12</sup></a><sup> </sup>went from
0.48 at December 31, 2003 to 0.31 at December 31, 2004.</p>

<p>Macro-economic conditions contributed to the improvement in
results. The average price of Brent in 2004 was 38.2
dollars/barrel (up 32.5% over 2003). The effect of the increase
in oil prices was offset in part by the depreciation of the
dollar over the euro (down 10%). The euro price of Brent only
increased by 20.5%, thereby creating a comparative disadvantage
to European companies as compared to those companies whose
functional currency is the US dollar.</p>

<p>In the Exploration &amp; Production segment, hydrocarbon
production available for sale averaged 1,586 KBOE/d increasing by
50 KBOE/d over 2003 (up 3.3%). Eni&#146;s proved reserves of
hydrocarbons at December 31, 2004 totalled 7,218 million boe,
slightly decreasing over December 31, 2003 (down 0.7%). The
reserve replacement ratio was 91%. The average reserve life index
was 12.1 years (12.7 in 2003).</p>

<p>In the Gas &amp; Power segment, despite an increasingly
competitive environment with increasing regulatory constraints,
sales of natural gas (84.5 billion cubic meters) increased by 6.1
billion cubic meters over 2003 (up 7.8%). Sales of electricity
(13.8 TWh) increased by 8.3 TWh over 2003 (up 150%) due to the
full year of commercial operations of the first combined cycle
generation unit and the start-up of the second and third units at
the Ferrera Erbognone power plant, as well as the start-up of new
generation capacity at the Ravenna power plant.</p>

<p>In the Refining &amp; Marketing segment, Eni continued the
upgrading process of its refining system aimed at increasing
efficiency, conversion rate and product quality of Eni wholly
owned refineries. In marketing Eni continued the process of
upgrading its distribution network in Italy; in Europe Eni built
on the growth strategy implemented in selected European areas
(mainly in Spain, South-East France and Central Europe). Retail
and wholesale sales of refined products (28.8 million tonnes)
increased by 760,000 tonnes over 2003 (up 2.7%).</p>

<p>In 2004, capital expenditure amounted to euro 7.5 billion. Of
this 94% was directed to the Exploration &amp; Production, Gas
&amp; Power and Refining &amp; Marketing businesses and concerned
large projects aimed at supporting growth and the long-term
sustainability of the business. The principal projects were:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the development of the Wafa
        and Bahr Essalam fields in Libya, the first one started
        production in August 2004 and the second expected to
        start-up in mid-2005;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the development of fields in
        Iran where Eni is operator;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">participation in the
        development of the oil fields in the Kizomba A and B
        areas in the deep waters of Angola, the first one started
        production in August 2004 and the second is expected to
        start-up in late 2005;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">development of the Kashagan
        field in the Kazakh offshore;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">upgrade and maintenance of
        Eni&#146;s natural gas transport and distribution
        network;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the completion of the
        Greenstream gasline, which started operations in October
        and when fully operational, will carry to Italy 8 billion
        cubic meters of natural gas per year (4 billion net to
        Eni), already sold to third parties under long-term
        contracts with terms of up to approximately 20 years;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the continuation of the plan
        for power generation capacity build-up;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the construction of the tar
        gasification plant at the Sannazzaro refinery, actions on
        refineries and the upgrade of Eni&#146;s fuel
        distribution network.</td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>Margin</i></b><a
    href="#(13)"><sup>13</sup></a></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Trading environment</i></b></p>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Average price of Brent dated crude oil <sup>(1)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">24.98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28.84</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">38.22</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Average
        price in euro of Brent dated crude oil <sup>(2)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">26.41</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">25.50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">30.72</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Average EUR/USD exchange rate <sup>(3)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.946</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.131</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.244</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Average
        European refining margin <sup>(4)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.80</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4.02</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">EURIBOR &#150; three-month euro rate % <sup>(3)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In US dollars
        per barrel. Source: Platt&#146;s Oilgram.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Source: Eni's
        calculations.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(3)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Source:
        European Central Bank.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(4)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In US dollars
        per barrel. FOB Mediterranean Brent dated crude oil.
        Source: Eni calculations based on Platt&#146;s Oilgram
        data.</font></td>
    </tr>
</table>

<p>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
&quot;Item 3 &#150; Risk Factors.&quot; The trading environment
was generally favorable in 2004. However the favorable impact of
higher hydrocarbon prices and refining margins compared to 2003
was partly offset by the depreciation of the US dollar versus the
euro. Natural gas demand in Italy increased by approximately four
percentage points over 2003 driven by strong growth in the
thermoelectric segment. Natural gas margins in Italy decreased
with respect to 2003 due to negative trading conditions, relating
in particular to the lower appreciation of the euro over the US
dollar compared to 2003 and the impact of the increasingly
competitive pressure in the domestic natural gas market. In 2004,
refining margins increased sharply due to strong demand for
refined products, reflecting in part a supply shortage of medium
distillates in the European area in connection with refineries
standstills in order to adapt medium distillates specifications
to new environmental standards set by the European Union
effective in 2005. Margins on distribution of refined products in
Europe were reduced by high oil prices as marketing profit
centers were unable to pass onto to final customers the full
increase in international prices of refined products.
Petrochemical product margins rebounded somewhat from the
depressed levels of 2003.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Key consolidated financial data</i></b></p>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">51,487</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58,382</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Operating
        income</font></td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8,502</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">9,517</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,463</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net income</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,593</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,585</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,274</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Net cash
        provided by operating activities </font></td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,578</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,827</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,362</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditure</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,048</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,802</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,503</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Investments<sup>(1)</sup></font></td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,366</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,255</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">316</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Shareholders&#146; equity including minority
        interest</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28,351</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">28,318</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">32,466</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Net
        borrowings<sup>(2)</sup></font></td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11,141</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">13,543</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,228</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net income per share </font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(euro per share)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.48</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.93</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Dividend
        per share </font></td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1">(euro per share) </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">0.900</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings to total shareholders&#146;
        equity ratio including minority interests (leverage)<sup>(2)</sup></font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.48</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.31</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="2%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">This item
        refers mainly to the acquisition of net equity of other
        companies and acquired net borrowings. In 2003, it also
        includes the outlay for the tender offer for Italgas
        shares (euro 2,569 million).</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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 &quot;Liquidity
        and capital resources &#150; Financial conditions&quot;
        below.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Critical Acc">Table of Contents</a></h5>

<p><font size="3"><b>Critical Accounting Estimates</b></font></p>

<p>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 &quot;Italian GAAP&quot;).</p>

<p>Italian GAAP varies in certain significant respects from
generally accepted accounting principles applied in the United
States (&quot;U.S. GAAP&quot;). For a summary of the significant
differences between Italian accounting principles and U.S. GAAP
that are relevant to Eni, see &quot;Summary of Differences
Between Italian accounting principles and U.S. GAAP&quot; 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.</p>

<p>The preparation of these consolidated 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. Summarized below are the 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Oil and Gas Activities</i></b></p>
</blockquote>

<p>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. Exploration permits 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. Costs for the acquisition of unproved
property are reassessed at least annually in order to verify
whether the carrying amount may be recoverable in future years
(see &quot;Impairment of Assets&quot; below). Costs associated
with exploratory activities for oil and gas producing properties
are expensed as incurred for Italian GAAP financial reporting
purposes. Capitalized costs related to abandoned exploration
drilling programs are expensed. For a discussion on the
accounting of costs for exploratory well under U.S. GAAP see
below.</p>

<p>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.</p>

<p>Eni regularly accrues costs expected to be incurred with
respect to eventual well abandonment, including costs associated
with site restoration, on a UOP basis.</p>

<p>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 &quot;proved&quot;. 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; and (ii) undeveloped 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 &quot;Item 3 &#150; Risk Factors
&#150; Uncertainties in estimates of oil and natural gas
reserves&quot;.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Accounting for Suspended Well Costs under U.S. GAAP</i></b></p>
</blockquote>

<p>Under U.S. GAAP costs for exploratory wells are initially
capitalized pending the determination of whether the well has
found proved reserves. If proved reserves are found, the
capitalized costs of drilling the well are reclassified to
tangible assets and amortized on a UOP basis. If proved reserves
are not found, the capitalized costs of drilling the well are
charged to expense. However, successful exploratory efforts are,
in many cases, not declared to be proved until after an extensive
and lengthy evaluation period has been completed. These issues
were addressed by the FASB staff in its FSP FAS 19-1, published
in April 2005, amending FAS 19, &quot;Financial Accouting and
Reporting by Oil and Gas Producing Companies&quot;. Under the
provisions of FSP FAS 19-1, companies in the oil and gas industry
are allowed to continue capitalization of an exploratory well
after the completion of drilling when: (a) the well has found a
sufficient quantity of reserves to justify completion as a
producing well; and (b) the enterprise is making sufficient
progress assessing the reserves and the economic and operating
viability of the project. If either condition is not met or if an
enterprise obtains information that raises substantial doubt
about the economic or operational viability of the project, the
exploratory well would be assumed to be impaired, and its costs,
net of any salvage value, would be charged to expense. FSP FAS
19-1 provided a number of indicators necessary to demonstrate
sufficient progress was being made in assessing the reserves and
economic viability of the project. Among these indicators are for
instance: (i) costs are being incurred to assess the reserves and
their potential development; (ii) existence (or active
negotiations) of sales contracts with customers for oil and
natural gas; and (iii) existence of firm plans, established
timetables or contractual commitments, which may include seismic
testing and drilling of additional exploratory wells.
Notwithstanding the application of the above mentioned indicators
the determination of whether an exploratory well should remain
capitalized after the completion of drilling still requires high
degree of judgement on the part of management in assessing
whether the company is making sufficient progress assessing the
reserves and the economic and operating viability of a given
project and hence in deciding to continue capitalization of costs
related to exploratory wells that have found reserves that cannot
be recognized as proved when drilling is completed.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Impairment of Assets</i></b></p>
</blockquote>

<p>Fixed assets and intangible assets are written down whenever
events and changes in circumstances indicate that the carrying
amount may not be recoverable. Conditions that could cause an
asset to become impaired include lower-than-forecasted commodity
sales prices, changes in the Group&#146;s business plans or a
significant adverse change in the local or national business
climate. The amount of an impairment charge is the excess of an
assets carrying amount over its estimated fair value. The
estimated fair value usually is based on the present values of
expected future cash flows using assumptions commensurate with
the risks involved in the asset group. The expected future cash
flows used for impairment reviews are based on judgmental
assessments of future production volumes, prices and costs,
considering available information at the date of review.
According to Italian GAAP, when the circumstances causing an
impairment cease to exist, Eni reverses previously recorded
impairment charges net of depreciation.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Asset Retirement Obligations</i></b></p>
</blockquote>

<p>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. Further,
management estimates and assumptions are required in the
evaluation of asset retirement obligations when reconciling
Italian GAAP to U.S. GAAP. Under U.S. GAAP, SFAS 143 requires
entities to record the fair value of a liability for an asset
retirement obligations 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. 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's credit costs.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Business Acquisitions</i></b></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Goodwill</i></b></p>
</blockquote>

<p>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. Under U.S.
GAAP goodwill is not amortized, instead it is subjected to an
annual impairment test. This annual impairment test includes two
steps, firstly it is determined whether the fair value of the
reporting unit, which holds a portion or all of the goodwill,
exceeds the reporting unit's carrying value (inclusive of
goodwill). If the fair value of the reporting unit exceeds the
carrying value no further action is required, however, if the
reporting unit's carrying value exceeds it's fair value a second
step is required. Step two of the test is to determine an
estimated fair value for the goodwill. This is done by allocating
the fair value of the reporting unit amongst its assets and
liabilities to determine an indirect estimated fair value of
goodwill. If the assessed fair value of goodwill is lower than
the carrying amount an impairment charge is recognized for the
difference between the two. Central to the annual impairment test
for goodwill is the determination of estimated fair value
amounts. Management most commonly estimates fair values by
discounting future estimates of cash flows, therefore, the
outcome of the impairment test is sensitive to future cash flow
estimates and changes thereto and the selection of the rate at
which to discount the future cash flow estimates.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Environmental Liabilities</i></b></p>
</blockquote>

<p>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 &quot;Item 4 &#150; Environmental
Matters&quot;.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Contingencies</i></b></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Recent Accounting Pronouncements</i></b></p>
</blockquote>

<p>See Note 29 to the Consolidated Financial Statements for
information about recent accounting pronouncements and Recent
developments below for a discussion of the introduction of
International Financial Reporting Standards.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Result of Op">Table of Contents</a></h5>

<p><font size="3"><b>Results of Operations</b></font></p>

<blockquote>
    <p><b><i>Three Years ended December 31, 2004</i></b></p>
</blockquote>

<p>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.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net sales from operations</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">47,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">51,487</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">58,382</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        income and revenues<sup>(1)</sup></font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">1,080</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">913</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">1,298</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Total revenues</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">49,002</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">52,400</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">59,680</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Operating
        expenses</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(34,996</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(37,732</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(42,356</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Depreciation, amortization and writedowns</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">(5,504</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">(5,151</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">(4,861</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Operating income</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">8,502</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">9,517</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">12,463</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net financial income (expense)</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">(167</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">(154</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">(95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Net income
        (expense) from investments</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">229</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Income before extraordinary income and income
        taxes</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">8,378</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">9,346</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">12,597</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Net
        extraordinary income (expense)<sup>(2)</sup></font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(29</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">49</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(56</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Income before income taxes</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">8,349</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">9,395</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">12,541</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Income
        taxes</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(3,127</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(3,241</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(4,653</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Income before minority interest</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">5,222</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">6,154</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">7,888</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Minority
        interest</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(629</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(569</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td align="right" valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="2">(614</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net income</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">4,593</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">5,585</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="1%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="2">7,274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="2%">&nbsp;</td>
        <td width="2%">&nbsp;</td>
        <td width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Gross of
        income tax.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p>Revenues from sales of products and services are recognized
upon transfer of title or completion of service. In particular,
revenues are recognized:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for petroleum products sold
        to retail distribution networks, generally upon delivery
        to the service stations; for all the other sales,
        generally, upon shipment;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for natural gas when the
        natural gas leaves Eni&#146;s distribution network and is
        delivered to the customer;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for crude oil, generally
        upon shipment;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">for chemicals and all other
        sales, generally upon shipment.</td>
    </tr>
</table>

<p>In all instances where revenue is recognized upon shipment,
all risk of loss is transferred to the buyer upon shipment.</p>

<p>Revenues from natural gas and crude oil production from
properties in which Eni has a working 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.</p>

<p>Revenues related to long-term construction contracts are
recognized using the percentage-of-completion method measured on
the cost-to-cost basis. Long-term construction contracts
denominated in currencies other than euro are translated into the
euro using the exchange rate of the day the percentage of
completion is evaluated with the purchaser or using the exchange
rate of the day advances are paid; long-term construction
contracts not yet accepted by the purchaser are translated using
the year-end exchange rate; the same criteria is used for the
corresponding hedging derivatives. Provisions for anticipated
losses on long-term contracts are recorded in full when such
losses become evident. 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.</p>

<p style="page-break-before:always">Costs are recognized when the
related goods and services are sold, consumed or allocated, or
when their future useful lives cannot be determined.</p>

<p>Eni is a 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
Eni&#146;s share of oil and gas production. The company records
such income taxes owed by Eni but paid on its behalf in revenues
and income tax expense.</p>

<p>The table below sets forth certain income statement items as a
percentage of net sales from operations for the periods
indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="76%" bgcolor="#EEEEEE"><font
        size="2">Operating expenses</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">73.0%</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">73.3%</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">71.0%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="76%"><font size="2">Depreciation,
        amortization and writedowns</font></td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">11.5%</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">10.0%</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">8.1%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="76%" bgcolor="#EEEEEE"><font
        size="2">Operating income</font></td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17.7%</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18.5%</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20.9%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="76%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p><i>2004 compared to 2003</i> Eni&#146;s net income in 2004 was
euro 7,274 million with a euro 1,689 million increase over 2003
(up 30.2%), due primarily to a positive operating income
performance (up euro 2,946 million) registered in particular in
Eni&#146;s core oil business, offset in part by higher income
taxes (euro 1,412 million). The petrochemical business also
generated operating income after several years of losses. The
increase in net income was also caused by: (i) an increase in net
income from investments (euro 246 million) due to higher income
earned by certain Eni&#146;s affiliates and lower losses on
certain investments; (ii) lower financial charges (a decrease of
euro 59 million). Net extraordinary expense increased by euro 105
million due to the recognition of higher loss contingencies
relating environmental remediation in Eni&#146;s Petrochemical
and Refining &amp; Marketing segments and guarantees given in the
divestment of certain businesses in the Refining &amp; Marketing
segments, as well as, lower extraordinary income, the effects of
which were partly offset by a euro 519 million gain on the sale
of a 9.054% interest in Snam Rete Gas.</p>

<p><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 income
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); and (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).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Analysis of the line items of the income statement:</i></b></p>
</blockquote>

<blockquote>
    <p><b><i>a) Total Revenues</i></b></p>
    <p><i>Net sales from operations</i></p>
</blockquote>

<p>Eni&#146;s total revenues were euro 59,680, 52,400 and 49,002
million in 2004, 2003 and 2002, respectively. Total revenues
consist of net sales from operations and other income and
revenues. Eni&#146;s net sales from operations amounted to euro
58,382, 51,487 and 47,922 million in 2004, 2003, and 2002,
respectively, and its other income and revenues totalled euro
1,298, 913, and 1,080, respectively, in these periods.</p>

<p style="page-break-before:always">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.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12,877</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12,746</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">15,349</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">15,297</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">16,067</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">17,258</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">21,546</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">22,148</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">26,094</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4,516</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4,487</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5,417</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,546</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,306</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,494</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        activities<sup> (1)</sup></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,449</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,178</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,279</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies<sup> (1)</sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">586</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">700</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">851</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Consolidation
        adjustment<sup> (2)</sup></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(12,895</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(12,145</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(14,360</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">51,487</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">58,382</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Beginning in
        2003 Eni&#146;s activities have been grouped by segment
        differently:</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%"><font size="1">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%"><font size="1">Syndial
        (former EniChem) was included in the &quot;Other
        activities&quot; segment, which includes all Eni
        companies not included in specific segments (such as,
        among others, EniData, Sieco, Tecnomare, EniTecnologie,
        Eni Corporate University, AGI); </font></td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%"><font size="1">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%"><font size="1">the new
        &quot;Corporate and financial companies&quot; segment was
        created, which includes Eni Corporate, Sofid and the
        financial companies formerly included in the &quot;Other
        activities&quot; segment.</font></td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In addition
        following its merger into Eni in 2004, EniData SpA which
        managed Eni&#146;s IT activities, formerly included in
        &quot;Other activities&quot;, is now included in
        &quot;Corporate and financial companies&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Data for 2002
        and 2003 have been reclassified accordingly, in order to
        allow for a homogeneous comparison.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font 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></td>
    </tr>
</table>

<p>&nbsp;</p>

<p><i>2004 compared to 2003 </i>Eni&#146;s net sales from
operations for 2004 totalled euro 58,382 million, with an
increase of euro 6,895 million over 2003, up 13.4%, due
principally to higher oil prices in dollars, higher refined
product and petrochemical prices and higher volumes sold in
Eni&#146;s main operating segments, the effects of which were
partially offset by the impact of the depreciation of the dollar
over the euro (approximately euro 1,100 million).</p>

<p>Revenues generated by the Exploration &amp; Production segment
(euro 15,349 million) increased by euro 2,603 million, up 20.4%,
due principally to higher prices realized in dollars (oil up
30.3%, natural gas up 9.3%) and higher hydrocarbon production
sold (20.3 million boe, up 3.6%) the effects of which were
partially offset by the appreciation of the euro over the dollar.</p>

<p>Revenues generated by the Gas &amp; Power segment (euro 17,258
million) increased by euro 1,191 million, up 7.4%, due
principally to increased volumes sold of natural gas (3.94
billion cubic meters, up 5.7%) excluding own consumption, and
electricity (8.30 terawatthour, up 149.5%), the effects of which
were offset in part by lower natural gas prices related to the
natural gas competitive and regulatory environment, as well as to
the appreciation of the euro over the dollar.</p>

<p>Revenues generated by the Refining &amp; Marketing segment
(euro 26,094 million) increased by euro 3,946 million, up 17.8%,
principally due to higher international prices for refined
products and to higher volumes sold (3.11 million tonnes, up
6.2%), the effects of which were offset in part by the
appreciation of the euro over the dollar.</p>

<p>Revenues generated by the Petrochemical segment (euro 5,417
million) increased by euro 930 million, up 20.7%, due mainly to a
20.8% increase in the average selling prices of products.</p>

<p>Revenues from the Oilfield Services, Construction and
Engineering segment (euro 6,494 million) increased by euro 188
million, up 3%, mainly due to increased activity levels.</p>

<p>Revenues of Corporate and financial companies (euro 851
million), which essentially consists of invoices for services
provided to other group segments, increased by euro 151 million,
up 21.6%, due mainly to the concentration, in this segment, of
activities generating overhead expenses and relating to the
headquarters of Rome, San Donato Milanese and Genova (in
particular these activities relate to real estate rentals and
maintenance, business support and human resources services), as
well as IT communication and other services. Until 2003, costs
related to these activities and services had been recognized by
companies and divisions of Eni.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 2002 </i>Eni&#146;s net sales from
operations for 2003 totalled euro 51,487 million, with an
increase of euro 3,565 million compared to 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.</p>

<p>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%).</p>

<p>Revenues generated by the Gas &amp; Power segment (euro 16,067
million) increased by euro 770 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.</p>

<p>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).</p>

<p>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).</p>

<p>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 oilfield services and construction area.</p>

<p>Revenues generated by the Other activities segment (euro 1,178
million) decreased by euro 271 million, down 18.7% due mainly to
the decline registered at Syndial as a consequence of
closure/sale of businesses.</p>

<p>Revenues generated by Corporate and financial companies (euro
700 million) increased by euro 114 million, up 19.5%, 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.</p>

<p align="left">&nbsp;</p>

<blockquote>
    <p><font size="3"><em>Other income and revenues</em></font></p>
</blockquote>

<p><i>2004 compared to 200.</i> Other income and revenues (euro
1,298 million) increased by euro 385 million due mainly to higher
gains on the disposal of assets (euro 413 million in 2004, euro
109 million in 2003) related mainly to the divestment of proved
and unproved property in the Exploration &amp; Production segment
(euro 371 million).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>b) Operating Expenses</i></b></p>
</blockquote>

<p>The table below sets forth the components of Eni&#146;s
operating expenses for the periods indicated.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Purchases, services and other</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">31,893</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">34,566</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">39,092</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Payroll
        and related costs</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,103</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,166</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,264</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Operating expenses</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">34,996</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">37,732</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">42,356</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p><i>2004 compared to 2003</i> Operating expenses (euro 42,356
million) increased by euro 4,624 million compared to 2003, up
12.3%, due mainly to: (i) higher prices for oil-based and
petrochemical feedstocks and for natural gas; (ii) higher volumes
of natural gas purchased and higher activity levels in the
Oilfield Services, Construction and Engineering segment; (iii)
higher volumes of petroleum products purchased for resale in the
Refining &amp; Marketing segment; and (iv) higher provisions to
the site restoration and abandonment reserve in the Exploration
&amp; Production segment (euro 182 million). These increases were
partially offset by the effect of the appreciation of the euro
over the dollar, also in relation to the conversion of financial
statements denominated in currencies other than the euro.</p>

<p>Payroll and related costs (euro 3,264 million) increased by
euro 98 million, up 3.1%, mainly due to an approximately 4.8%
increase in unit labor cost in Italy and higher activity levels
in the Oilfield Services, Construction and Engineering segment
outside Italy. These effects were offset in part by the decline
related to the divestment of the 100% interest in Agip do Brasil
SA, a refined product and LPG distribution company, the decline
in the average number of employees in Italy (approximately 1,300
persons), and the effect of the conversion of financial
statements denominated in currencies other than the euro.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 2002</i> Operating expenses (euro 37,732
million) increased by euro 2,736 million compared to 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; and (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.</p>

<p>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.</p>

<p>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 &quot;Notes
to the Consolidated Financial Statements - Note 2 - Summary of
significant accounting and reporting policies - Change in
accounting principles&quot;). 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>c) Depreciation, Amortization and Writedowns</i></b></p>
</blockquote>

<p>The table below sets forth a breakdown of depreciation,
amortization and writedowns by business segment for the periods
indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production<sup>(1)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,552</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,133</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,021</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">417</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">533</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">572</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">490</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">493</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">465</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">125</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">125</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">107</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">267</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">271</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">251</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">44</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">106</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Total of
        depreciation and amortization</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,962</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,710</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,566</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Writedowns</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">542</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">441</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">295</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Depreciation,
        amortization and writedowns</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,504</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,151</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,861</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Exploration
        expenditures of euro 491, 632 and 865 million are
        included in these amounts relative to the years 2004,
        2003 and 2002, respectively.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p><i>2004 compared to 2003 </i>Depreciation, amortization and
writedown charges (euro 4,861 million) decreased by euro 290
million compared to 2003, down 5.6%. Depreciation and
amortization charges (euro 4,566 million) declined by euro 144
million due the decline registered in particular in the
Exploration &amp; Production segment (euro 112 million) due to
currency translation effects, lower exploration costs and lower
amortization of exploration bonuses (euro 169 million on a
constant exchange rate basis), offset only in part by higher
development amortization charges (euro 246 million on a constant
exchange rate basis) related to higher production and expenditure
aimed at maintaining production levels in mature fields in Italy,
Egypt, the United Kingdom and Indonesia. Amortization charges of
the Gas &amp; Power segment increased by euro 39 million, due in
particular to new power generation units at Ferrera Erbognone and
Ravenna.</p>

<p>Writedowns (euro 295 million) concerned essentially the
impairment of proved and unproved property in the Exploration
&amp; Production segment (euro 266 million). In 2003, writedowns
(euro 441 million) concerned mainly proved and unproved property
(euro 227 million) and petrochemical plants (euro 122 million).</p>

<p>Amortization of goodwill arising from recently purchased
companies (Italgas, Bouygues Offshore and Lasmo) amounted to euro
106 million. Amortization of goodwill of purchased companies
accounted for under the equity method (euro 124 million, in
particular Galp Energia, GVS and Uni&#243;n Fenosa Gas) is recorded
under &quot;net income from investments&quot;. The overall effect
of goodwill amortization amounted to euro 230 million.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 2002</i> Depreciation, amortization and
writedown charges (euro 5,151 million) decreased by euro 353
million compared to 2002, down 6.4%. Depreciation and
amortization charges (euro 4,710 million) declined by euro 252
million due to 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 other
currencies 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); and (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
&quot;Item 4 &#150; Refining&quot;) 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.</p>

<p>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); and (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) not 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>d) Operating Income by Segment</i></b></p>
</blockquote>

<p>The table below sets forth Eni&#146;s operating income by
business segment for the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,175</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,746</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,017</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,244</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,627</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,463</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">321</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">583</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">965</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(126</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(176</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">271</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">298</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">311</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">260</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(214</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(293</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(244</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(196</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(281</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(269</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Operating
        income</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">8,502</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">9,517</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">12,463</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>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.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">40.2%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">45.1%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">52.2%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">21.2%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">22.6%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">20.1%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.5%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.6%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3.7%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(2.8%</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(3.9%</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5.0%</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6.6%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.9%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.0%</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p><b><i>Exploration &amp; Production</i></b> Operating income
amounted to euro 8,017 million increasing by euro 2,271 million
compared to 2003, up 39.5%, due to: (i) higher average realized
prices in dollars (oil up 30.3%, natural gas up 9.3%); (ii)
higher hydrocarbon production sold (20.3 million boe, up 3.6%);
(iii) the recognition of net gains on the sale of assets, as part
of Eni&#146;s mineral right portfolio rationalization program
(euro 334 million); and (iv) lower exploration costs and lower
amortization of exploration bonuses (euro 169 million on a
constant exchange rate basis). These positive factors were offset
in part by: (i) the effect (approximately euro 890 million) of
the appreciation of the euro over the dollar (up 10%); (ii)
higher production costs and amortization related to higher
production and capital expenditure aimed at maintaining
production levels in mature fields; and (iii) higher provisions
to the site restoration and abandonment reserve (euro 182
million).</p>

<p>Operating income in 2003 amounted to euro 5,746 million
increasing by euro 571 million compared to 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);
and (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
&quot;Item 4 &#150; Exploration &amp; Production &#150; Storage
activities&quot;); and (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.</p>

<p>&nbsp;</p>

<p><b><i>Gas &amp; Power</i></b> Operating income in 2004
amounted to euro 3,463 million, a euro 164 million decrease
compared to 2003, down 4.5%, due mainly to: (i) lower margins on
natural gas sales, due also to the lower appreciation of the euro
over the dollar in 2004 as compared to 2003; (ii) lower tariffs
for natural gas distributed through local distribution networks;
(iii) the negative impact of a different mix for natural gas
sales; and (iv) higher net operating expense (euro 49 million),
related in particular to lower release of redundant risk
reserves. These negative factors were offset in part by: (i) a
5.74 billion cubic meter increase in natural gas volumes sold, up
8%, also driven by an increase in volumes supplied to Eni&#146;s
electricity generation business (own consumption), as well as an
increase in volumes distributed through local distribution
networks; (ii) higher results in natural gas transport activities
outside Italy due to the tariff review process and in natural gas
transmission in Italy, due also to the reimbursement of the first
installment paid to the Sicilia Region in 2002 following the
establishment of a new tax under Regional Law No. 2 of March 26,
2002 (euro 11 million) see &quot;Note 23 to the Consolidated
Financial Statements &#150; Legal Proceedings&quot;; and (iii)
the fact that in the fourth quarter of 2003 the writedown of
natural gas distribution assets in Brazil was recorded (euro 30
million). Operating income earned by the electricity generation
business increased by 331% principally due to higher production
sold (8.30 terawatthour, up 149.5%).</p>

<p>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 ceilings 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; and (v) lower costs related to streamlining
and efficiency improvement actions. These positive factors were
offset in part by: (i) the amortization 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); and (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 megawatts unit
at the Ferrera Erbognone power station was offset by the change
in sales mix and higher costs of fuels.</p>

<p>&nbsp;</p>

<p><b><i>Refining &amp; Marketing</i></b> Operating income in
2004 amounted to euro 965 million, a euro 382 million increase
compared to 2003, up 65.5%, due essentially to: (i) higher
refining margins (the margin on Brent was up 1.37 dollars/barrel)
enhanced by the effect of an increase in the differential between
the prices of light crudes and products and heavy crudes and fuel
oil, which favored Eni&#146;s refining system, characterized by a
high conversion capacity. The effects of this increase were
offset in part by the effect of the appreciation of the euro over
the dollar; (ii) higher intake processing on own account (2.25
million tonnes, up 6.4%) in Italy, also due to fewer maintenance
standstills at wholly-owned refineries, and in the rest of
Europe; (iii) increased volumes sold on retail markets in the
rest of Europe (0.45 million tonnes, up 14.9%) following the
purchase of service stations in Spain, Germany and France in
2003; and (iv) higher sales margins on wholesale markets. These
positive factors were offset in part by a decline in distribution
margins on retail markets in Italy and the rest of Europe,
related to the increase in international refined product prices
which was not fully reflected in selling prices, and higher
royalties paid to highway companies in Italy.</p>

<p>Operating income in 2003 amounted to euro 583 million, a euro
262 million increase compared to 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; and (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 from taking full advantage of improved
refining conditions 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; and (iii) the recording of higher charges for environmental
risks (euro 25 million).</p>

<p>&nbsp;</p>

<p><b><i>Petrochemicals</i></b> In 2004, operating income
amounted to euro 271 million (compared to a euro 176 million
operating loss in 2003); the euro 447 million improvement was due
mainly to: (i) an increase in margins, in particular in basic
petrochemicals (cracker margin) related to a better trend in
prices than in the cost of oil-based feedstocks, which reflect a
positive trend in demand, as well as an improved industrial and
sales performance; (ii) the fact that in 2003 plant writedowns
were recognized for euro 122 million (euro 3 million in 2004);
and (iii) a profit on stocks<a href="#(15)"><sup>15</sup></a> of
euro 39 million.</p>

<p>In 2003, operating losses amounted to euro 176 million, an
increase of euro 50 million compared to 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; and (iii) the fact that in 2002
inventories were revalued 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.</p>

<p>&nbsp;</p>

<p><b><i>Oilfield Services Construction and Engineering</i></b>
Operating income in 2004 totalled euro 260 million, a euro 51
million decline over 2003, down 16.4%. Engineering registered an
operating loss amounting to euro 33 million, as compared to an
operating income of euro 7 million in 2003, due to the lower
profitability of certain contracts. Oilfield services and
construction recorded an operating income of euro 293 million,
with a euro 11 million decline, following lower results in
particular in: (i) the Onshore construction area, due to the
completion of relevant contracts in Kazakhstan (Karachaganak
field), Saudi Arabia and Nigeria, whose effects were offset in
part by the start-up of a new contract in Sakhalin in Russia; and
(ii) the Offshore construction and LNG areas, due to lower
profitability of contracts. These negative factors were offset in
part by improved results in the Offshore drilling area due to
increased utilization rate of certain vessels and the Leased FPSO
area, due essentially to a contract for the recovery of oil from
the tanks of the Prestige tanker, that sunk off the coast of
Galicia in November 2002.</p>

<p>Operating income in 2003 totalled 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%.</p>

<p>Operating income of oilfield services and construction
increased slightly compared to 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); and
(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; and (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.</p>

<p>Engineering<i> </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).</p>

<p>&nbsp;</p>

<p><b><i>Other activities</i></b> This area recorded operating
losses of euro 244 million with a euro 49 million improvement
compared to 2003 (down 16.7%), related in particular to Syndial
SpA (euro 42 million) due to: (i) lower asset writedowns (euro 38
million); (ii) lower fixed costs (euro 14 million) related to
streamlining; (iii) higher margins on the sale of products (euro
11 million). These positive factors were partly offset by: (i)
the fact that in 2003 gains from the disposal of assets were
recorded of euro 13 million; (ii) higher expense (euro 7 million)
related to an accident involving the Porto Torres dock.</p>

<p>In 2003, this segment recorded operating losses of euro 293
million with a euro 79 million increase compared to 2002, up
36.9%, 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.</p>

<p>&nbsp;</p>

<p><b><i>Corporate and financial companies</i></b> This segment
recorded operating losses of euro 269 million, decreasing by euro
12 million compared to 2003, due essentially to a better
performance of Padana Assicurazioni SpA, whose effects were
offset in part by a higher operating loss of Eni Corporate due to
higher R&amp;D costs (euro 27 million) related in part to the
beginning of new projects (euro 8 million) offset only in part by
lower IT costs (euro 12 million).</p>

<p>In 2003, this segment recorded operating losses of euro 281
million, with a euro 85 million loss compared to increase 2002,
up 43.4%, due essentially to the costs incurred on Eni Slurry
Technology project (EST project &#150; see &quot;Item 4 &#150;
Research and Development&quot;) and higher amortization and
depreciation charges related to the purchase of software licenses
(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.</p>

<p>&nbsp;</p>

<blockquote>
    <p style="page-break-before:always"><b><i>e) Net Financial
    Expense</i></b></p>
</blockquote>

<p>The table below sets forth a breakdown of Eni&#146;s net
financial expense for the periods indicated:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net financial expense</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(259</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(270</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(139</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Income on
        operating financing receivables and tax credits</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">122</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">116</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Foreign exchange difference, net</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Risk
        reserve provision</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(62</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(167</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(154</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p><i>2004 compared to 2003 </i>Net financial expense (euro 95
million) decreased by euro 59 million compared to 2003, down
38.3%, due in particular to lower interest rates on European
markets (Euribor down an average of 0.2 percentage points) and
lower average net borrowings<a href="#(16)"><sup>16</sup></a>.
These positive factors were offset in part by a provision
recorded in risk reserves of euro 62 million, related to the sale
to British Telecom Plc of the financing receivable from Albacom
(Eni&#146;s interest 35%) for euro 87 million. See &quot;Item 4
&#150; Other Activities&quot;.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 2002</i> Net financial expense (euro 154
million) decreased by euro 13 million compared to 2002, down
7.8%, due in particular to lower interest rates on European
markets (Euribor down one percentage point from 2003) and on
international markets (Libor down 0.6 percentage points from
2003) 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>f) Net Income from Investments</i></b></p>
</blockquote>

<p><i>2004 compared to 2003</i> Net income from investments
amounted to euro 229 million (as compared to a net expense of
euro 17 million in 2003) and represented the balance of income of
euro 311 million and expense of euro 82 million. Income concerned
essentially: (i) Eni&#146;s share of income of subsidiaries
accounted using the equity method (euro 199 million), in
particular in the Gas &amp; Power segment (euro 109 million
including Trans Austria Gasleitung GmbH of euro 32 million,
Transmediterranean Pipelines Co Ltd of euro 19 million, Azienda
Energia e Servizi Torino SpA of euro 19 million and Trans Europa
Naturgas Pipeline GmbH of euro 11 million), Oilfield Services,
Construction and Engineering segment (euro 50 million) and
Refining &amp; Marketing segment (euro 35 million); (ii)
dividends received from subsidiaries and affiliates accounted for
at cost (euro 72 million, including euro 48 million of which by
Nigeria LNG Ltd &#150; Eni&#146;s interest 10.4%); and (iii)
gains on disposals (euro 36 million) concerning in particular the
sale of a 2.33% interest in Nuovo Pignone Holding SpA (euro 23
million) and a 50% interest in Finifast Srl in the Refining &amp;
Marketing segment (euro 3 million). Expenses included Eni&#146;s
share of losses of subsidiaries and affiliates, relating in
particular to Albacom SpA (euro 41 million), affiliates in the
Exploration &amp; Production segment (euro 27 million, including
Discovery Producer Services Llc for euro 8 million, Geopromtrans
Llc for euro 5 million and Caspian Pipeline Consortium for euro 4
million), Galp Energia SGPS SA (euro 5 million, affected by the
amortization of the euro 107 million difference between purchase
cost and net book value) and Uni&#243;n Fenosa Gas SA (euro 3
million, affected by the amortization of the difference between
purchase cost and net book value &#150; euro 10 million).</p>

<p>The euro 246 million improvement in net income from
investments (from a euro 17 million expense to a euro 229 million
income) was due to: (i) lower losses recognized by Albacom
(Eni&#146;s interest 35%) of euro 87 million; (ii) improved net
income Blue Stream (Eni&#146;s interest 50%), Galp Energia
(Eni&#146;s interest 33.34%) and Uni&#243;n Fenosa Gas (Eni&#146;s
interest 50%) for a total of euro 61 million; and (iii) higher
dividends received (euro 50 million) in particular from Nigeria
LNG.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 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. Expenses included Eni&#146;s
share of losses of subsidiaries accounted for using the equity
method and Eni&#146;s share of impairment of the net book value
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 amortization of euro 107 million of
the difference between purchase cost and net equity the effects
of which were offset in part by Eni'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 shippers, 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 using 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); and (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).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>g) Net Extraordinary Expense</i></b></p>
</blockquote>

<p>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.
Under U.S. GAAP, these items would not appear as extraordinary
expense.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Gains on disposals</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">257</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">290</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">661</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        extraordinary income</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">112</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">273</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">44</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extraordinary
        income</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">369</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">563</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">705</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Restructuring
        costs:</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provisions for
        risks and contingent liabilities</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(157</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(248</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(601</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Writedowns
        of fixed assets</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(55</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(66</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(20</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cost of redundancy
        incentives</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(114</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(116</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(54</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total
        restructuring costs</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(326</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(430</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(675</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Other extraordinary expense</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(84</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Extraordinary
        expense</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(398</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(514</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(761</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net extraordinary income (expense)</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(29</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p><i>2004 net extraordinary income</i> Gains on disposals
amounted to euro 661 million and concerned principally: (i) the
sale of a 9.054% stake of the share capital of Snam Rete Gas SpA
to Mediobanca SpA (euro 519 million); (ii) the divestment of
Eni&#146;s 100% interest in Agip do Brasil SA, a company
operating in the area of distribution of refined products and LPG
(euro 94 million); (iii) the divestment of the waste disposal
business in Ravenna (euro 27 million); and (iv) the divestment of
service stations in the Refining &amp; Marketing segment (euro 12
million).</p>

<p>Charges and provisions for risks and contingent liabilities of
euro 601 million concerned essentially: (i) environmental charges
of Syndial SpA (euro 162 million) and in the Refining &amp;
Marketing segment (euro 141 million); (ii) an increase in the
reserve for risks and liabilities in the amount of euro 91
million representing the estimated expense related to Eni&#146;s
participation in Oil Insurance Ltd, due to changes in the
accident rate over the past five years (strongly affected by the
exceptionally high number of accidents that occurred in 2004: the
Ivan hurricane in the Gulf of Mexico, the fire at the El Temsah
platform in the Egyptian offshore) which will be paid in the next
five years; (iii) charges for contingent liabilities related to
divestments carried out in the Refining &amp; Marketing segment
(euro 64 million); (iv) an increase in the reserve for risks and
liabilities in connection with a tax claim in Angola (euro 39
million) and restructuring charges (euro 14 million) related to
the process of portfolio rationalization in the United Kingdom in
the Exploration &amp; Production segment; and (v) restructuring
charges relating to decommissioned sites of Syndial SpA (euro 20
million).</p>

<p>Redundancy incentives amounted to euro 54 million and relate
to the following segments: Refining &amp; Marketing (euro 20
million), Corporate and financial companies (euro 11 million),
Gas &amp; Power (euro 10 million) and Petrochemicals (euro 6
million).</p>

<p>Writedowns and losses on disposal for euro 20 million
concerned essentially the writedown of the solvent manufacture
plant in Fornovo, due to the reorganization of activities (euro
18 million).</p>

<p>&nbsp;</p>

<p><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); and (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; and (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).</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>h) Taxes</i></b></p>
</blockquote>

<p>Beginning in 2004 Eni is allowed to determine its income taxes
for Italian tax purposes on the basis of a consolidated income
before income taxes (&quot;National Consolidated tax
return&quot;) which includes income (or loss) before income taxes
of Eni SpA and certain Italian subsidiaries as provided for by
Legislative Decree No. 344 of December 2003 for the reform of the
tax law. Under the new Italian tax law Eni SpA is able to offset
fully income earned by certain subsidiaries against losses
recognized by other subsidiaries. Further benefits include, among
others, the elimination of certain limits to the deductibility of
financial charges, the exemption from fiscal burden of dividends
received by certain subsidiaries and the ability to carry out
contributions in kind and divestment among involved subsidiaries
under a neutral fiscal regime.</p>

<p>&nbsp;</p>

<p><i>2004 compared to 2003 </i>Income taxes (euro 4,653 million)
increased by euro 1,412 million, up 43.6%, principally due to
higher income before taxes (euro 3,146 million) and the fact that
in 2003 deferred tax assets of euro 701 million were recognized
in connection with the revaluation of assets provided for by the
2004 Italian budget law (euro 414 million) and the alignment of
the tax value of Stoccaggi Gas Italia SpA&#146;s assets to their
book value, as well as the elimination of certain favorable tax
provisions. These negative factors were offset in part by the
recognition of deferred tax assets concerning the temporary
difference between the tax value and the book value of: (i)
natural gas inventory owned by Stoccaggi Gas Italia SpA (euro 259
million)<a href="#(17)"><sup>17</sup></a>; (ii) reserve for loss
contingencies and asset writedown of Syndial (euro 135 million),
as now this company is included in Eni&#146;s National
Consolidated tax return. In prior years deferred tax assets on
this reserve could not be recognized due to management&#146;s
assessment that there was no reasonable expectation of their
realization through the generation of taxable income in the
Syndial business; and (iii) exploration costs fully amortized
when incurred of Agip Caspian Sea BV due to the approval of the
development plan of the Kashagan field by the Kazakh authorities
(euro 88 million). Exemption of gains from the sale of interests
from corporate income tax and the one percentage point reduction
in statutory tax rate on income before taxes (from 34 to 33%)
contributed to the reduction of income taxes payable.</p>

<p>In 2004 the effective tax rate was 37.1% compared with a
statutory tax rate of 38.5%, calculated by applying a 33% tax
rate (Ires) to income before taxes and a 4.25% tax rate (Irap) to
the net value of production as provided for by Italian laws. The
1.4 percentage points difference between the statutory and the
effective tax rate is due mainly to the following factors: (i) a
4.1 percentage points reduction due to the effects of the
application of favorable Italian tax laws; (ii) a one percentage
points reduction due to the positive impact of the application of
the National Consolidated tax return; and (iii) a one percentage
points reduction due to a permanent timing difference concerning
mainly the gain recognized on the sale of a 9.054% interest in
Snam Rete Gas. These positive factors were partly offset by a
five percentage points increase due to the higher rate of taxes
applicable to the income before income taxes of certain foreign
subsidiaries.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 2002</i> Income taxes (euro 3,241 million)
increased by euro 114 million compared to 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)<a
href="#(18)"><sup>18</sup></a>; (iii) the fact that in 2002 the
reserve for deferred taxes was increased in relation to the 10
percentage points increase in corporate taxes for oil companies
in the United Kingdom (from 30 to 40%) with a euro 215 million
effect; and (iv) a 2 percentage points reduction in corporate tax
(Irpeg) in Italy.</p>

<p>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 favorable 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>i) Minority Interest</i></b></p>
</blockquote>

<p><i>2004 compared to 2003</i> Minority interest (euro 614
million) concerned essentially Snam Rete Gas SpA (euro 489
million) and Saipem SpA (euro 114 million). The euro 45 million
increase compared to 2003 was due in particular to the increase
in minority interest in Snam Rete Gas following to the sale of
9.054% of its share capital.</p>

<p>&nbsp;</p>

<p><i>2003 compared to 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 compared to 2002 was due essentially to the effect of the
tender offer for Italgas shares (euro 124 million).</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Liquidity and CR">Table of Contents</a></h5>

<p><font size="3"><b>Liquidity and Capital Resources</b></font></p>

<p>The table below sets forth the principal components of Eni's
change in cash and cash equivalent for the periods indicated.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net income before minority interest</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,222</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,154</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,888</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>Adjustments
        to reconcile to cash generated from operating income
        before changes in working capital:</i></font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;
        Amortization and depreciation and other non-monetary
        items</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,682</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,493</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,245</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149;
        Net gains on disposals of assets</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(152</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(35</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(374</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#149; Dividends,
        interest, extraordinary income (expense) and income taxes</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,305</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,268</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,935</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Net cash
        generated from operating income before changes in working
        capital</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">14,057</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">14,880</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">17,694</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Changes in working capital related to operations</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(510</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(465</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(564</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Dividends
        received, taxes paid, interest and extraordinary
        income/expense (paid) received during the year</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(2,969</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(3,588</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(4,768</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Net cash
        provided by operating activities</b></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>10,578</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>10,827</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,362</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Capital
        expenditure</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(8,048</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(8,802</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(7,503</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Investments <sup>(1)</sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1,315</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(985</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(316</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Disposals</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">935</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">650</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,543</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Other cash flow related to capital expenditure,
        investments and divestments</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(101</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,079</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">356</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Changes in
        short and long-term financial debt</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,736</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,629</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(3,619</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Dividends paid and changes in minority interests
        and reserves</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3,846</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(5,933</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3,165</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Effect of
        change in consolidation scope and exchange differences</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(64</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(107</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>Change in cash
        and cash equivalent for the year</b></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,875</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,642</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(359</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Cash and
        cash equivalent at the beginning of the year</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,390</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3,265</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,623</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Cash and cash equivalent at year end</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,265</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,623</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,264</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">This item
        refers mainly to the acquisition of equity of other
        companies.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p style="page-break-before:always">The table below sets forth
the principal components of Eni's change in net borrowings<sup>(2)</sup>
for the periods indicated.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net cash generated from operating income before
        changes in working capital</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14,057</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14,880</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17,694</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Changes in
        working capital related to operations</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(510</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(465</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(564</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Dividends received, taxes paid, interest and
        extraordinary income/expense (paid) received during the
        year</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2,969</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(3,588</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(4,768</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Net cash
        provided by operating activities</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10,578</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10,827</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">12,362</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Capital expenditure</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8,048</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(8,802</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(7,503</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Investments</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(1,315</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(985</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(316</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Disposals</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">935</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">650</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,549</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other cash
        flow related to capital expenditure, investments and
        divestments</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(319</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1,110</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">82</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings<sup>(2)</sup> of acquired
        companies</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(267</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(692</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Net
        borrowings<sup>(2)</sup> of divested companies</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">39</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">279</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exchange differences on net borrowings and other
        changes</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">990</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,422</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Dividends
        paid and changes in minority interests and reserves</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(3,846</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(5,933</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(3,165</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2"><b>Change in net borrowings</b><sup>(2)</sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(1,253</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(2,402</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>(3,315</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Net
        borrowings<sup>(2)</sup> at the beginning of the year</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">9,888</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">11,141</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">13,543</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Net borrowings<sup>(2)</sup> at year end</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">11,141</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13,543</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">10,228</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">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 &quot;Financial condition&quot;
        below.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Analysis of Certain Components of Eni&#146;s Change
    in Net Borrowings:</i></b></p>
</blockquote>

<blockquote>
    <p><b><i>a) Cash generated from Operating Income before
    Changes in Working Capital</i></b></p>
</blockquote>

<p>Cash generated from operating income before changes in working
capital totalled euro 17,694 million, euro 14,880 million and
euro 14,057 million in 2004, 2003 and 2002, respectively.</p>

<p>In 2004, income before minority interests has been adjusted to
take into account depreciation, amortization and other non-cash
items (euro 5,245 million). Adjustments concerned primarily
depreciation and amortization of tangible and intangible assets
(euro 4,566 million) and writedowns of fixed assets and
investments (euro 235 million).</p>

<p>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 586 million).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>b) Changes in Working Capital related to Operations</i></b></p>
</blockquote>

<p>Net working capital related to operations increased by euro
564 million, euro 465 million and euro 510 million in 2004, 2003
and 2002, respectively.</p>

<p>In 2004, the increase in net working capital (euro 564
million) was mainly due to a euro 1,013 million increase in trade
accounts receivable due essentially to: higher prices in dollars
of oil and refined products and higher volumes sold in the main
operating segments, the effects of which were offset in part by
the depreciation of the dollar over the euro. The increase
related in particular to the Gas &amp; Power segment (euro 274
million), the Petrochemical segment (euro 250 million), the
Exploration &amp; Production segment (euro 214 million) and the
Refining &amp; Marketing segment (euro 117 million).</p>

<p>This factor was partly offset by an increase in the euro value
of trade accounts payable (euro 403 million).</p>

<p>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; and (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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>c) Dividends, Interest, Taxes and Extraordinary
    Expense</i></b></p>
</blockquote>

<p>Dividends, interest, taxes and extraordinary expense paid
(which is net of amounts received) totalled euro 4,768 million,
euro 3,588 million and euro 2,969 million in 2004, 2003 and 2002,
respectively.</p>

<p>In 2004, dividends received, interest, extraordinary income
(expense) and income taxes paid (euro 4,768 million) concerned
primarily the payment of income taxes.</p>

<p>In 2003, dividends received, interest, extraordinary income
(expense) and income taxes paid (euro 3,588 million) concerned
primarily the payment of income taxes.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>d) Capital Expenditure and Investing Activities</i></b></p>
</blockquote>

<p>Capital expenditure totalled euro 7,503 million, euro 8,802
million and euro 8,048 million in 2004, 2003 and 2002,
respectively. The euro 1,299 decrease from 2004 to 2003 was due
to a euro 769 million reduction, or 13.5%, in the Exploration and
Production business due principally to the impact of the 10%
appreciation of the euro over the US dollar and a euro 314
million decrease, or 17.8% in the Gas &amp; Power business due to
the completion of the Greenstream underwater pipeline project.</p>

<p>The euro 754 million increase from 2003 to 2002 was due mainly
to a euro 445 million increase in the Gas &amp; Power segment, to
a euro 180 million increase in the Refining &amp; Marketing
segment, and a euro 66 million increase in the Exploration &amp;
Production segment, partly offset by decreases in all other Eni
segments.</p>

<p>Investments (including net borrowings acquired) totalled euro
316 million, euro 1,677 million and euro 1,366 million in 2004,
2003 and 2002, 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).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>e) Disposals</i></b></p>
</blockquote>

<p>Disposals (including net debt discharged) totalled euro 1,828
million, euro 651 million and euro 974 million in 2004, 2003 and
2002, respectively.</p>

<p>In 2004, disposals (euro 1,828 million, including net
borrowing discharged of euro 279 million) concerned primarily:
(i) the Gas &amp; Power segment (euro 676 million), related to
the sale of shares representing 9.054% of the share capital of
Snam Rete Gas SpA to Mediobanca SpA (euro 650 million) and other
assets (euro 26 million); (ii) the Exploration &amp; Production
segment (euro 576 million) related in particular to interests in
the North Sea, Italy, Azerbaijan, Gabon and Mauritania within the
program of rationalization of mineral assets (euro 548 million)
and other minor assets (euro 28 million); (iii) the Refining
&amp; Marketing segment (euro 414 million) related to the
divestment of the 100% interest in Agip do Brasil SA, a company
active in distribution and marketing of refined products and LPG
(euro 365 million), the sale of service stations (euro 17
million) and other minor assets (euro 32 million); (iv) the Other
Activities and Corporate and financial companies segments (euro
106 million) related to the sale of the waste disposal business
in Ravenna (euro 49 million), the sale of a 2.33% stake in Nuovo
Pignone Holding SpA (euro 28 million) and other minor assets
(euro 29 million); and (v) the Petrochemical segment (euro 46
million) related in particular to the sale of the elastomer
Baytown plant (euro 30 million) and of other minor assets (euro
16 million).</p>

<p>In 2003, disposals (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); and (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).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>f) Dividends paid and changes in minority interests
    and reserves</i></b></p>
</blockquote>

<p>In 2004, dividends paid and changes in minority interest and
reserves (euro 3,165 million) related mainly to the payment of
dividends for the fiscal year 2003 by Eni SpA for a total amount
of euro 2,828 million (corresponding to euro 0.750 per share or
US dollar 4.56 per ADS converted at the Noon Buying Rate of 1
euro = 1.217 US dollar as at the payment date of June 24, 2004)
and the payment of dividends by Snam Rete Gas SpA (euro 195
million) and Saipem SpA (euro 37 million) and the purchase of
4.23 million Eni shares within the share buy-back program (euro
70 million).</p>

<p>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 US dollar 4,29
per ADS converted at the Noon Buying Rate of 1 euro = 1.1429 US
dollar as at the payment date of June 26, 2003), 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).</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Financial cond">Table of Contents</a></h5>

<p><font size="3"><b>Financial Condition</b></font></p>

<p>Eni evaluates its financial condition by reference to
&quot;net borrowings&quot;, 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.</p>

<p>Management believes that net borrowings is a useful measure of
Eni&#146;s financial condition as it provides an indication of
the soundness of Eni capital structure and of how Eni&#146;s
operating assets are financed. In addition, management utilizes
the ratio of net borrowings to total shareholders&#146; equity
including minority interest (leverage) to evaluate Eni&#146;s
financial 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.</p>

<p>The tables below set forth the calculations of net borrowings
and leverage for the periods indicated and their reconciliation
to the most directly comparable GAAP measure.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="47%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="47%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Short-term</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Long-term</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Short-term</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Long-term</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="53%">&nbsp;</td>
        <td width="47%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="53%" bgcolor="#EEEEEE"><font
        size="2"><b>Finance debt (short-term and long-term debt)</b></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,918</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>8,336</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>16,254</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,051</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>7,674</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,725</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="53%"><font size="2">Cash and
        cash equivalent</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(1,623</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(1,623</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(1,264</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(1,264</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="53%" bgcolor="#EEEEEE"><font
        size="2">Securities not related to operations</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(781</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(783</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(796</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(797</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="53%"><font size="2">Non
        operating financing receivables</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(240</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(240</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(240</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">(240</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="53%" bgcolor="#EEEEEE"><font
        size="2">Other, net </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(196</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">(196</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="53%"><font size="2"><b>Net
        Borrowings</b></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>5,449</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>8,094</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>13,543</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>2,795</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>7,433</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><b>10,228</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="53%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>As of December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td>&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="2">Shareholders&#146; equity including minority
        interests as per Eni&#146;s consolidated financial
        statements prepared in accordance with Italian GAAP</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>28,318</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>32,446</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%"><font size="2"><i>Ratio
        of finance debt to total shareholders&#146; equity
        including minority interests</i></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><i>0.57</i></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><i>0.39</i></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="2"><i>Less: ratio of cash, cash equivalent and
        certain liquid investments not related to operations to
        total shareholders&#146; equity including minority
        interests</i></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><i>(0.09</i></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><i>)</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><i>(0.08</i></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="2"><i>)</i></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="85%"><font size="2"><i>Ratio
        of net borrowing to total shareholders&#146; equity
        including minority interests (leverage)</i></font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><i>0.48</i></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2"><i>0.31</i></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>In 2004, net borrowings amounted to euro 10,228 million, a
euro 3,315 million decrease over December 31, 2003. Debts and
bonds amounted to euro 12,725 million, of which 5,051 were
short-term (including the portion of long-term debt due within
twelve months for euro 936 million) and 7,674 were medium and
long-term. In particular bonds amounted to euro 5,331 million
(euro 4,793 million at December 31, 2003). Short-term and
long-term debt of euro 12,725 million was denominated 63% in
euro, 24% in US dollars, 10% in pound sterling and 3% in other
currencies.</p>

<p>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). 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Short-term debt</i></b></p>
</blockquote>

<p>In 2004, short-term debt of euro 4,115 million (excluding the
portion of long-term debt due within twelve months) decreased by
euro 3,313 million over 2003. The surplus of cash provided by
operating activities less financial requirements for capital
expenditure and dividend payment was employed to reduce
short-term debt. The average interest rate of Eni&#146;s
short-term debt was 2.13% and 2.49% for the years ended December
31, 2003 and 2004, respectively.</p>

<p>On December 31, 2004 Eni maintained committed and uncommitted
unused short-term lines of credit with various domestic and
foreign banks for euro 5,304 and 7,771 million, respectively
(euro 4,647 million and euro 4,799 million, respectively, at
December 31, 2003). These agreements provide for interest charges
based on prevailing market conditions. Commission fees on unused
lines of credit are not significant.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Long-term debt</i></b></p>
</blockquote>

<p>In 2004, long-term debt of euro 8,610 million decreased by
euro 216 million over 2003.</p>

<p>Eni entered into financing arrangements with the European
Investment Bank, relating to bank debt that requires maintenance
of certain financial ratios generally based on Eni&#146;s
consolidated financial statements or of a rating not inferior to
A - (S&amp;P) and A3 (Moodys). At December 31, 2003 and 2004, the
amount of short and long-term debt subject to restrictive
covenants was euro 865 million and euro 1,104 million,
respectively (of which, euro 300 million relating to rating).
Furthermore, Saipem SpA entered into financing arrangements with
banks for euro 300 million that require maintenance of certain
financial ratios generally based on Saipem&#146;s consolidated
financial statements. As of December 31, 2004 Eni and Saipem were
in compliance with the covenants contained in the financing
arrangements.</p>

<p>Ordinary bonds of euro 5,331 million concern primarily notes
issued by Eni in its Euro Medium Term Notes program for a total
of euro 4,296 million and other ordinary bonds for a total of
euro 1,035 million.</p>

<p>The weighted average interest rate on Eni&#146;s long-term
debt (including current maturities) at December 31, 2004 was
approximately 4.21% (4.13% at December 31, 2003).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Capital Expenditure by Segment</i></b></p>
</blockquote>

<p>The table below sets forth a breakdown, by segment, of capital
expenditure.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><p align="center"><font
        size="1"><b>Year ended December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="23%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,615</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,681</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,912</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,315</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,760</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,446</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">550</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">730</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">669</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">145</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">141</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">99</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">233</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">278</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">209</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">119</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">70</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">48</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">142</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">120</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Total</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8,048</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">8,802</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,503</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>In 2004, capital expenditure in the Exploration &amp;
Production segment amounted to euro 4,912 million, decreasing by
euro 769 million over 2003, down 13.5%.</p>

<p>Capital expenditure of the Exploration &amp; Production
segment concerned primarily development expenditure (euro 4,369
million, euro 4,969 million in 2003) mainly directed outside
Italy (euro 3,991 million): in particular in Libya (the Wafa and
Bahr Essalam project), Iran (the South Pars project, phases 4 and
5), Angola (fields in Block 15), Kazakhstan, Egypt, Nigeria and
Norway.</p>

<p>Development expenditure in Italy (euro 378 million) concerned
in particular the continuation of the drilling program and work
for plant and infrastructure in Val d&#146;Agri and sidetrack and
infilling activities in mature areas. Exploration expenditure
amounted to euro 499 million (euro 635 million in 2003), of which
about 90% was directed outside Italy. Outside Italy exploration
concerned in particular the following countries: Egypt, the
United States, Nigeria, Norway, Indonesia and Kazakhstan. In
Italy essentially the onshore of Sicily and Central Italy.
Further euro 17 million (Eni&#146;s share) were expensed by
affiliates for exploration projects in Saudi Arabia, Russia and
Spain. Expenditure for capital goods amounted to euro 44 million.</p>

<p>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%.</p>

<p style="page-break-before:always">Expenditure for development
and capital goods totalled 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.</p>

<p>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.</p>

<p>In 2004, capital expenditure in the Gas &amp; Power segment
totalled euro 1,446 million, decreasing by euro 314 million over
2003, down 17.8%, and related mainly to: (i) development and
maintenance of Eni&#146;s natural gas transportation network in
Italy (euro 553 million); (ii) the continuation of the
construction of combined cycle power plants (euro 451 million) in
particular at Brindisi, Ferrara, Ferrera Erbognone, Mantova and
Ravenna; (iii) development and maintenance of Eni&#146;s natural
gas distribution network in Italy (euro 168 million); and (iv)
the completion of the Greenstream gasline (euro 159 million) that
started operations in October.</p>

<p>In 2003, capital expenditure in the Gas &amp; Power segment
totalled 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); and
(iv) extension and maintenance of the secondary natural gas
transmission network in Italy (euro 292 million).</p>

<p>In 2004, capital expenditure in the Refining &amp; Marketing
segment amounted to euro 669 million, decreasing by euro 61
million compared to 2003, down 8.4%, and concerned essentially:
(i) refining and logistics (euro 420 million), in particular the
construction of the tar gasification plant at the Sannazzaro
refinery, efficiency improvement actions and adjustment of
automotive fuel characteristics to new European specifications;
(ii) the upgrade of the refined product distribution network in
Italy (euro 164 million); and (iii) the upgrade of the refined
product distribution network and the purchase of service stations
in the rest of Europe (euro 69 million, of which 20 million
related to construction of new stations and purchases in
particular in Germany, Spain and France).</p>

<p>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; and (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).</p>

<p>In 2004, capital expenditure in the Petrochemicals segment
amounted to euro 99 million, decreasing by euro 42 million over
2003, down 29.8%, and concerned in particular actions for
improving the efficiency of plants and streamlining (euro 58
million) and actions for environmental protection and for
complying with safety and environmental regulations (for a total
of euro 41 million).</p>

<p>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).</p>

<p>In 2004, capital expenditure in the Oilfield Services,
Construction and Engineering segment amounted to euro 209
million, decreasing by euro 69 million over 2003, down 24.8%, and
concerned mainly: (i) the construction and upgrade of logistical
support means in Kazakhstan, Angola and Nigeria; (ii) the
completion of interventions on the semi-submersible platforms
Scarabeo 3 and Scarabeo 4, on the Perro Negro 3 jack-up and on
the Castoro 8 pipelaying vessel; and (iii) the purchase of plant
and equipment required for the Sakhalin project in Russia.</p>

<p>In 2003, capital expenditure in the Oilfield Services,
Construction 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; and (iii) the completion of the upgrade
of the semisubmersible drilling platform Scarabeo 7 in order to
adjust it to a new contract.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Recent Dev">Table of Contents</a></h5>

<p><font size="3"><b>Recent Developments</b></font></p>

<p>Eni has previously published its first quarter results for
2005 which has been prepared in accordance with the evaluation
and measurement criteria contained in the International Financial
Reporting Standards (IFRS) issued by the International Accounting
Standard Board (IASB) and adopted by the European Commission
according to the procedure set forth in Article 6 of the European
Regulation (CE) No. 1606/2002 of the European Parliament and
European Council of July 19, 2002 (see below). In order to allow
for comparison, Eni restated its 2004 first quarter results as
required by IFRS and the Italian body which supervises Italian
listed companies (CONSOB).</p>

<p>In the first quarter of 2005 oil prices continued their upward
trends with the spot price for Brent, a benchmark crude oil,
above the level of 40 US dollar/barrel due to strong demand for
refined products in the United States, China and India, reduced
spare capacity on part of OPEC and geopolitical developments.
Refining margins almost doubled with respect to the first quarter
2004, on average the euro appreciated against the dollar.</p>

<p>In the April-May 2005 two-month period the spot price of Brent
crude averaged around 50 US dollar per barrel backed by strong
demand and geopolitical developments. Refining margins rose
sharply due to strong demand for gasoline. The euro retreated
somewhat from the highs recorded in December 2004 and January
2005; management expects trends in exchange rates to adversely
impact Eni's results of operations in 2005.</p>

<p>The table below sets forth certain indicators of some of these
external factors for the periods indicated:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Three months<br>
        ended March 31,</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Two months<br>
        April-May,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Average price of Brent dated crude oil<sup>(1)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">31.95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">47.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">35.53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">50.19</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Average
        price in euro of Brent dated crude oil</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">25.56</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">36.23</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">29.63</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">39.15</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Average EUR/USD Exchange rate<sup>(2)</sup></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.250</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.311</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.199</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.282</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Average
        European refining margin<sup>(3)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2.21</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4.26</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5.59</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6.92</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">EURIBOR &#150; three-month euro rate %</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In US dollars
        per barrel. Source: Platt&#146;s Oilgram.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Source:
        European Central Bank.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(3)</font></td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In US dollars
        per barrel. FOB Mediterranean Brent dated crude oil.
        Source: Eni calculations based on Platt&#146;s Oilgram
        data.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p>The discussion that follows compares Eni&#146;s results of
operations for the first quarter of 2005 prepared in accordance
with the evaluation and measurement criteria of IFRS to
Eni&#146;s results of operations for the first quarter of 2004,
originally prepared in accordance with Italian GAAP, which were
restated in accordance with IFRS for comparability.</p>

<p>Eni&#146;s net income for the first quarter 2005 increased by
22.2% over the first quarter of 2004 due principally to a 39.2%
increase in operating income, partly offset by higher income
taxes. The increase in Eni's operating income was recorded in
particular in the following segments:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Exploration &amp; Production
        (up 55.3%) related essentially to higher realizations and
        higher production volumes sold, partly offset by the
        depreciation of the dollar over the euro;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Petrochemicals related
        essentially to higher margins of products and improved
        efficiency of operations;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Refining &amp; Marketing (up
        115%) related essentially to higher profit on stock (see
        below), in connection with higher prices of oil and
        refined products, and higher refining margins, whose
        effects were offset in part by lower processing at the
        Gela refinery following the damage caused by a sea storm
        to the docking infrastructure in December 2004.</td>
    </tr>
</table>

<p>Eni&#146;s net sales from operations (revenues) for the first
quarter of 2005 increased by 20.1% over the first quarter of 2004
principally due to higher volumes sold in Eni&#146;s main
operating segments, the effects of which were partially offset by
the negative impact of the 4.9% depreciation of the dollar over
the euro.</p>

<p>The depreciation of the euro over other currencies, in
particular the US dollar (as of March 31, 2005 the EUR/USD
exchange rate was down 4.8% over December 31, 2004) determined
with respect to 2004 year-end an increase in the book value of
net capital employed, of net equity and of net borrowings.</p>

<p>Net borrowings as of March 31, 2005 declined by 26.8% compared
to December 31, 2004, due to cash flow generated by operating
activities, influenced also by seasonality factors, the effects
of which were offset in part by financial requirements for
capital expenditure and investment and the impact of the
conversion of financial statements of subsidiaries denominated in
currencies other than the euro.</p>

<p>In the first quarter of 2005 hydrocarbon production increased
by 4.6% as compared to the first quarter of 2004.</p>

<p>Natural gas sales (included gas consumed by Eni and Eni's
share of sales of its affiliates) increased by 3.1% as compared
to the first quarter of 2004. Electricity production sold
increased by 98% as compared to the first quarter of 2004.</p>

<p>The most relevant recent developments occurring after December
31, 2004 are the following:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">starting in 2005 Eni, whose
        shares are listed on a regulated market of a Member State
        of the European Union, is required to prepare its interim
        and annual consolidated financial statements in
        accordance with International Financial Reporting
        Standards (IFRS). For a qualitative discussion of the
        main impacts of IFRS on Eni&#146;s financial statements
        see the paragraph &quot;Qualitative discussion of the
        impact of IFRS on Eni&#146;s financial statements&quot;
        below;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">on March 31, 2005 the
        Company exercised its pre-emptive right, along with the
        other partners, to purchase in proportion to their
        respective work interest the 16.67% share of North
        Caspian Sea PSA (&quot;PSA&quot;) previously held by
        British Gas. Following these transactions, 50% of this
        acquired interest was sold to the Kazakh national company
        Kazmunagaz. Similarly, the other partners in PSA sold 50%
        of their acquired portion of the 16.67% so that on
        completion Kazmunagaz held a 8.335% interest in PSA.
        Eni&#146;s interest increased by 1.85% from 16.67% to
        18.52% at a cost of US dollar 200 million;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in April 2005 Eni concluded
        the sale procedure of a 90% interest in Italiana Petroli
        (IP) with a call-and-put option for the remaining 10% to
        be exercised in the second half of 2010. The transaction
        is subject to the approval of the Italian Antitrust
        Authority and will entail cash proceeds of euro 186
        million for 100% of the shares when finalized. In 2004,
        IP sold 2.6 billion liters of fuels with an average
        throughput of 896,000 liters; at year end IP&#146;s
        network included 2,915 service stations, of these
        approximately 2,700 were leased;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">Eni Shareholders&#146;
        Meeting of May 27, 2005 resolved to extend the Eni share
        buy-back program for a further 18 month period starting
        on May 27, 2005. The Eni share buy-back program initiated
        in 2000, provides for the purchase of a maximum of 400
        million Eni shares for an amount not higher than euro 5.4
        billion.</td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Man Ex of Op">Table of Contents</a></h5>

<p><font size="3"><b>Management Expectations of Operations</b></font></p>

<p>The following are the forecasts for Eni&#146;s key production
and sales metrics in 2005:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">in 2005 daily production of
        hydrocarbons is forecasted to grow as compared to 2004 in
        line with the planned compound average growth rate for
        the 2004-2008 period (over 5%) which takes in account the
        effects of the decline of mature fields. Increases will
        be achieved outside Italy (in particular in Libya,
        Angola, Iran, Algeria, Kazakhstan and Egypt) due to the
        reaching of full production of fields started up in late
        2004 and start-ups planned for 2005;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">volumes of natural gas sold
        are expected to increase by 3% as compared to 2004 (84.45
        billion cubic meters in 2004<a href="#(19)"><sup>19</sup></a>),
        due to higher sales expected in markets in the rest of
        Europe (up 10% in particular in Spain, Turkey, Germany
        and France) on the basis of contracts already signed. In
        Italy management expects a decline in natural gas sales
        due to competitive pressure, the effect of which is
        expected to be partly offset by an increase in sales to
        Eni&#146;s electricity generation business;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">electricity production sold
        is expected to increase by about 50% as compared to 2004
        (13.85 terawatthour in 2004) due to the initiation of new
        generation capacity (about 3 gigawatt) at the Brindisi
        and Mantova sites and the full commercial activity of the
        units installed in 2004 at the Ravenna, Ferrera Erbognone
        and Mantova plants. Growing production volumes of
        electricity are expected to be absorbed by increasing
        demand for electricity in Italy. At year-end total
        installed generation capacity is expected to be
        approximately 4.3 gigawatt (3.3 gigawatt at December 31,
        2004);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">refinery processing intake
        on Eni&#146;s account is expected to decline by
        approximately 2% as compared to 2004 (37.68 million
        tonnes in 2004) due to the impact on the first months of
        2005 of lower processing at the Gela refinery following
        the damage caused by a sea storm to the docking
        infrastructure in December 2004. The capacity utilization
        rate of Eni&#146;s plants is expected to remain at 100%
        (the same rate of 2004);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">sales of refined products on
        the Agip branded network in Italy are expected to remain
        stable as compared to 2004, despite a decline in domestic
        consumption. In the rest of Europe the upward trend of
        sales is expected to continue also due to planned
        acquisitions.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>In 2005 capital expenditure is expected to amount to
approximately euro 7.5 billion; about 96% 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, Italy, Angola, Kazakhstan,
Egypt and Nigeria, as well as exploration; (ii) in the Gas &amp;
Power segment, upgrade and maintenance of Eni&#146;s natural gas
transmission and distribution network in Italy, as well as
continuation of the plan of power station construction; and (iii)
in the Refining &amp; Marketing segment, the completion of the
tar gasification plant at the Sannazzaro refinery, the increase
in efficiency and product quality and the upgrade of the fuel
distribution network in Italy and the rest of Europe.</p>

<p>Overall in the next four year period management plans to
invest approximately euro 26.9 billion in new capital
expenditure; over 90% of this new capital expenditure is planned
to 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 Angola, Kazakhstan, Italy, Nigeria, Egypt and Libya; (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, Mantova and
Ferrara; (v) interventions aimed at increasing the efficiency and
the flexibility of Eni refining system; and (vi) the upgrading
and development of Eni Italian and European networks of service
stations for the marketing of petroleum products.</p>

<p>Management plans to cover financial requirements for capital
expenditure and dividends by means of net cash provided by
operating activities. Management expects crude oil prices to
remain high and volatile in the medium term. Accordingly
management has modified the methodology to assess financial
sustainability; instead of evaluating cash flows at a given oil
price scenario, the company calculates the cash neutrality, i.e.
the breakeven oil price at which net cash provided by operating
activities equals the above mentioned financial requirements. The
cash neutrality is reached with a Brent crude oil of US dollar 20
per barrel.</p>

<p>In order to evaluate the profitability of individual capital
expenditure projects, management uses a long-term reference oil
price of US dollar 22 per barrel (in 2009 real terms). The
internal rate of return of each project is compared to the
relevant hurdle rate, differentiated by business segment and
country of operation. These hurdle rates are calculated taking
into account Eni's average cost of capital, the country risk
premium and the business premium.</p>

<p>Management expects to maintain a leverage (ratio of net
borrowings to shareholders&#146; equity) below the 0.40 ceiling
from 2007 onwards. See the paragraph &quot;Financial
condition&quot; above, for a discussion of the importance of
leverage to Eni&#146;s management.</p>

<p>In the next four-year period management plans to pay dividends
in line with dividends that will be paid in June 2005 for fiscal
year 2004 (0.90 euro per share corresponding to approximately
euro 3.4 billion). Beginning in 2005 management also plans to
start paying the dividend on a six-month basis. While this
circumstance will not alter the overall amount of dividends that
will be paid in future years, in 2005 it will result in a
permanent increase in Eni&#146;s net borrowings. See &quot;Item 8
&#150; Dividend Policy&quot; for more details on Eni&#146;s
dividend policy and the uncertainties and constraints to which it
is subject.</p>

<p>Eni is experiencing some pricing pressure in its core natural
gas business in Italy as a consequence of increasing competition
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 &quot;Item 4 &#150; Regulation of
the Italian Natural Gas Market&quot; and &quot;Item 3 &#150; Risk
Factors&quot;). Management expects Eni&#146;s operating profit in
year 2005 to be affected by this trend in its natural gas
business. However, management expects that this negative factor
will be offset almost completely by the expected growth in
natural gas sales in European markets and in electricity
production sold, the expected benefits due to the integration of
Eni marketing policy in natural gas and electricity generation
businesses, cost savings deriving from planned efficiency
improvement actions and higher tariffs in natural gas transport
outside Italy.</p>

<p>In the medium term, taking into account the mandatory ceilings
provided for by the Italian regulatory system for natural gas
operators and the possibility of further regulatory constraints,
developments in the supply and demand of natural gas in Italy
could pose some risks to Eni's ability to fulfil its contractual
obligations under take-or-pay contracts for the purchase of
natural gas. Management will seek to manage Eni's growing
availability of natural gas under take-or-pay contracts which
cannot be sold in Italy by: (i) increasing sales in European
natural gas markets where Eni&#146;s presence is established,
thanks to supply contracts already signed and planned actions;
(ii) entering new markets; and (iii) exploiting the growing
importance of natural gas spot markets (the so called continental
hubs for natural gas).</p>

<p>For a discussion of certain risks relating the impact of the
evolution of Italian regulation of the natural gas sector on
Eni&#146;s take-or-pay contracts see &quot;Item 3 &#150; Risk
Factors &#150; Liberalization of the Italian Natural Gas
Market&quot;.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Off-Balance Sheet Arrangements</i></b></p>
</blockquote>

<p>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 &quot;Contractual Obligations&quot; below.
See the Glossary for a definition of take-or-pay or ship-or-pay
clauses.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Contractual Obligations</i></b></p>
</blockquote>

<p>The following table summarizes the principal financial
obligations which are described in Item 18 &#150; Financial
Statements &#150; Note 11 and 23.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2006</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2007</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2008</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2009</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Thereafter</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="45%">&nbsp;</td>
        <td width="55%"><p align="center"><font size="1"><b>(million
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="2">Long-term Debt </font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,610</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">936</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,495</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,122</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">314</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">966</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,777</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="2">Short-term
        Debt</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,115</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,115</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="2"><b>Sub total</b></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>12,725</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,051</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,495</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>1,122</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>314</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>966</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>3,777</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="2">Operating
        leases relating to real estate rental in Italy</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">713</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">68</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">74</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">76</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">74</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">63</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">358</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="2">Other Commitments (off balance sheet):</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Take-or-pay
        </font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">94,083</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,170</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,313</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,280</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,146</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,914</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">62,260</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ship-or-pay</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,370</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">500</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">480</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">500</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">510</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">520</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,860</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Others
        <sup>(1)</sup></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">479</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">226</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">141</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="2"><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Purchase
        of Government Bond from employees <br>
        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(in
        balance sheet as per U.S. GAAP)</em></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>183</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>183</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="2"><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
        Memorandum of intent relating Marghera</em></font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><em>90</em></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><em>30</em></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><em>30</em></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2"><em>30</em></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="2"><em>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;-
        Memorandum of intent relating Val d'Agri </em></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>206</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>13</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>13</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>13</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>13</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>13</em></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><em>141</em></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&quot;Other commitments&quot; 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 long and
medium term market scenarios used by Eni for planning purposes to
minimum take and minimum ship quantities. Management expects
amounts due under Eni take-or-pay and ship-or-pay contractual
obligations in years subsequent to year 2009 will be roughly in
line with the average amounts expected to be paid in the
2005-2009 period. See &quot;Item 4 &#150; Gas &amp; Power &#150;
Natural gas purchases&quot; and &quot;Item 3 &#150; Risk Factors
&#150; Liberalization of the Italian Natural Gas Market&quot; for
a discussion of nature and importance of Eni&#146;s take-or-pay
contracts and the related risks from the evolving regulatory
environment that could negatively impact Eni&#146;s results.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Liquidity Risk</i></b></p>
</blockquote>

<p>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.</p>

<p>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 &quot;Net
borrowings&quot; above.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Working Capital</i></b></p>
</blockquote>

<p>Management believes that, taking into account unutilized
market facilities, Eni has sufficient working capital for its
foreseeable requirements.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Credit Risk</i></b></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Hedging</i></b></p>
</blockquote>

<p>The most important currencies for Eni are the euro and the US
dollar. See &quot;Item 3 &#150; Risk Factors &#150; Exchange
Rates&quot;. 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, 2004, the notional amount of forward exchange contracts was
euro 8,501 million (euro 6,165 million as of December 31, 2003)
and the notional amount of purchased options was euro 91 million
(euro 550 million as of December 31, 2003). Eni does not enter
into derivative transactions on a speculative basis.</p>

<p>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, 2004, Eni maintained for this purpose open
derivative commodity contracts, the amounts of which were not
material.</p>

<p>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, 2004, the notional amount
of interest rate contracts was euro 5,696 million, of which euro
5,663 million (euro 5,690 million as of December 31, 2003 related
to swaps and euro 33 million related to collars. See Note 23 to
the Consolidated Financial Statements.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Research and Development</i></b></p>
</blockquote>

<p>For a description of Eni&#146;s research and development
operations in 2004, see &quot;Item 4 &#150; Research and
Development&quot;.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Summary of dif">Table of Contents</a></h5>

<p><font size="3"><b>Summary of Significant Differences Between
Italian GAAP and U.S. GAAP</b></font></p>

<p>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.</p>

<p>Consolidated operating income reconciled to U.S. GAAP was euro
11,739 million, euro 9,215 million and euro 7,861 million in
2004, 2003 and 2002, respectively, compared with consolidated
operating income under Italian GAAP of euro 12,463 million, euro
9,517 million and euro 8,502 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,
for the Oilfield Services, Construction 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 and 2004, for the
Oilfield Services, Construction 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 segments, the effect
of asset impairments and revaluations; (iv) for all segments, the
effect of depreciation of monetary revaluation of assets; (v) for
Gas &amp; Power segment, the effect of the use of different rates
of depreciation; (vi) for all segments, the elimination of
goodwill amortization; (vii) for Gas &amp; Power segment and
storage activity, 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 segments, the effect
of stock grants and options awarded to employees; (x) for all
segments, the effect of stock issuance costs; (xi) in 2003 and
2004, 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 and 2004, for the Oilfield
Services and Engineering and Other activities segments, the
effect related to reserves for contingencies; and (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 &quot;Summary of Differences Between
Italian and U.S. GAAP&quot; and Note 28 for a breakdown of
operating income by segment under U.S. GAAP for the years 2002
through 2004.</p>

<p>Net income reconciled to U.S. GAAP was euro 6,401 million,
euro 6,296 million and euro 5,292 million in 2004, 2003 and 2002,
respectively, compared with consolidated net income under Italian
accounting principles of euro 7,274 million, euro 5,585 million
and euro 4,593 million in those same years. In addition to the
effects discussed above, the reconciliation of consolidated net
income to U.S. GAAP was affected in all years presented: (i) by
the effect of the differences related to companies carried on the
equity method; (ii) by the effect of deferred income taxes; and
(iii) by the effect of derivative contracts. Furthermore in 2004,
the reconciliation of consolidated net income to U.S. GAAP was
affected by a downward adjustment of the gain on the sale of a
9.054% interest in the subsidiary Snam Rete Gas due to an
increase of net book value of this subsidiary due to the use of
different rates of depreciation for natural gas pipelines and
other adjustment under U.S. GAAP.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Qualitative Discussion of the Impact of IFRS on
    Eni&#146;s Financial Statements</i></b></p>
</blockquote>

<p>Beginning in 2005 Eni, whose shares are listed on a regulated
market of a Member State of the European Union, is required to
prepare its consolidated financial statements in accordance with
IFRS. Eni has to prepare a balance sheet as of the transition
date (January 1, 2004), which corresponds to the beginning of the
first comparative period, that: (i) recognizes assets and
liabilities defined as such by the new accounting standards; (ii)
evaluates assets and liabilities with the values that would have
been determined if the new accounting standards had been applied
from the initial recognition (retrospective application); and
(iii) reclassifies items in accordance with IFRS.</p>

<p>The balance sheet as of December 31, 2003, which is the
balance sheet of the transition date or opening balance, the
balance sheet as of December 31, 2004 and the income statement
for year 2004 restated in accordance with IFRS and fully audited
will be published in Eni&#145;s annual report for the year ending
December 31, 2005. Effects of the new accounting standards on
opening balances of assets and liabilities are to be recognized
under shareholders&#146; equity, taking into account the fiscal
effect that is to be recognized under deferred tax assets or
liabilities. On the basis of the exemptions provided by IFRS 1
&quot;First Adoption of International Financial Reporting
Standards&quot;, Eni has chosen to not restate business
combinations and has elected January 1, 2005 as the transition
date for the first application of IAS 32 and IAS 39 related to
the evaluation of financial instruments, including derivatives.
On the basis of the best information currently available,
Eni&#146;s management estimates that the main changes that will
be introduced in the restated balance sheet of Eni as of December
31, 2003, the effects of which will be reflected in the restated
income statement for the year ended December 31, 2004 and in
Eni&#146;s balance sheet as of December 31, 2004 due to the
application of IFRS, are as follows: balance sheet as of December
31, 2004 due to the application of IFRS, are as follows:</p>

<blockquote>
    <p><i>1. Different useful lives of gas pipelines, compression
    stations, distribution networks and other assets</i></p>
</blockquote>

<p>This change concerns essentially the natural gas transport
pipelines, compression stations and distribution networks that
until 1999 were depreciated in accordance with Italian practice
applying rates established by tax authorities (10%, 10% and 8%,
respectively) both in statutory and consolidated financial
statements. In consolidated financial statements prepared in
accordance with U.S. GAAP, these assets were depreciated at a 4%
rate, based on the international estimate of a 25-year long
useful life.</p>

<p>The useful life of gas pipelines, compression stations and
distribution networks was changed in 2000 following a
determination of tariffs for natural gas sale by the Italian
Authority for Electricity and Gas which set the useful life of
gas pipelines at 40 years, that of compression stations at 25
years and that of distribution networks at 50 years. Therefore,
considering this change as a revision of previous estimates,
starting in 2000 the value of these assets, net of amortization
reserves at December 31, 1999, was depreciated based on their
residual useful life both under Italian and U.S. GAAP.</p>

<p>For the first application of IFRS, the adoption of the
retrospective method requires the adoption of the new principles
as if they had historically been applied using the best
information available at the time. Therefore, the book value of
gas pipelines, compression stations and distribution networks at
January 1, 2004 will be restated recalculating amortization
utilizing until 1999 the internationally accepted rate of 25
years and from 2000 onwards depreciating the residual value
according to the useful lives estimated by the Authority for
Electricity and Gas.</p>

<p>Under Italian GAAP the book value of complex assets is divided
according to various tax categories on the basis of the
depreciation rate tables contained in a Decree of the Ministry of
Economy and Finance. Under IFRS the components of a complex asset
that have different useful lives will be recorded separately in
order to be depreciated according to their useful life; land
parcels that cannot be depreciated will be recorded separately
even when they are bought along with buildings.</p>

<p>This restatement will result in a material increase in fixed
assets against shareholders&#146; equity and the reserve for
deferred taxation in the balance sheet as of December 31, 2003
and a decrease in earnings for the year ended December 31, 2004.</p>

<blockquote>
    <p><i>2. Different recognition of deferred tax assets</i></p>
</blockquote>

<p><i>2.1 Recognition of deferred tax assets on the revaluation
of assets (Law 342/2000)</i> Under Italian GAAP deferred tax
assets are recorded if recoverable with &quot;reasonable
certainty&quot;.</p>

<p>Under IFRS deferred tax assets are recorded if their recovery
is more likely than not.</p>

<p>In 2000 Snam SpA, now merged into Eni SpA, revalued its assets
as permitted by Law 342/2000 aligning their book value to their
fair value. On this revaluation of depreciable assets Eni paid a
special rate tax (19% instead of the statutory 34% rate), thus
recording a deferred tax asset. Eni&#146;s transport assets were
conferred in 2001 to Snam Rete Gas SpA. The revaluation carried
out had no impact on Eni&#146;s consolidated financial
statements; but a timing difference arose between the taxable
value and the book value which led, in accordance with Italian
GAAP, to the recognition of a provision for deferred tax assets
that amounted to euro 629 million at December 31, 2003,
corresponding to 19%<a href="#(20)"><sup>20</sup></a> of
depreciation estimated in the 2004-2007 plan on the deductible
timing difference.</p>

<p>Under IFRS, deferred taxes will be recognized on the entire
timing difference at the current statutory tax rate (37.25%).</p>

<p>The application of IFRS will result in an increase in deferred
tax assets against shareholders&#146; equity in the balance sheet
as of December 31, 2003 and a decrease in earnings for the year
ended December 31, 2004 related to the &quot;reversal&quot;<a
href="#(21)"><sup>21</sup></a> of deferred tax assets related to
the income statement share of depreciation for fiscal purposes
that is in excess of the depreciation of the useful life of the
relevant assets.</p>

<p><i>2.2 Recognition of deferred tax assets on Stogit&#146;s
inventories In 2003, </i>Stoccaggi Gas Italia SpA
(&quot;Stogit&quot;), applying Law 448/2001, realigned the fiscal
value to the higher book value of assets received upon
contribution in kind. In the consolidated financial statements
these assets were stated at their book value, this resulted in a
timing difference over the fiscal values from which a deferred
tax asset of euro 287 million was recognized in the consolidated
financial statements under Italian GAAP. A portion of the timing
difference concerns the inventories of natural gas; however, in
2003 consolidated financial statements under Italian GAAP the
deferred tax asset related to the timing difference on natural
gas inventories was not recognized on the assumption that its
recoverability was not reasonably certain at the end of the
concession, if not renewed.</p>

<p>The application of IFRS will result in an increase in deferred
tax assets against shareholders&#146; equity in the balance sheet
as of December 31, 2003 and a decrease in earnings for the year
ended December 31, 2004 related to the reversal of deferred tax
assets in connection to the circumstance that in 2004
consolidated financial statements under Italian GAAP deferred tax
assets on the timing difference on inventories were recognized
because Law 239/2004 allowed a determination of the year of the
recoverability<a href="#(22)"><sup>22</sup></a>.</p>

<p><i>2.3 Other effects of the different recognition of deferred
tax assets </i>The application of the more likely than not
criterion rather than that of the &quot;reasonable
certainty&quot; of recoverability of other deductible timing
differences determined the recognition of deferred tax assets of
euro against shareholders&#146; equity.</p>

<p>These deferred tax assets were recognized in the 2004
consolidated financial statements under Italian GAAP because the
conditions for their recognition were met; this will result in a
decrease in earnings for the year ended December 31, 2004
restated in accordance to IFRS.</p>

<blockquote>
    <p><i>3. Application of the weighted-average cost method
    instead of LIFO</i></p>
</blockquote>

<p>Under Italian GAAP the cost of inventories may be determined
with the weighted-average cost method or with the FIFO or LIFO
methods. Until 2004 Eni adopted the LIFO method, in its
evaluation of crude oil, natural gas and oil products inventories
applied on an annual basis.</p>

<p>IFRS does not allow the use of the LIFO method; it permits the
FIFO method and the weighted-average cost.</p>

<p>The application of the weighted-average cost on a three-month
basis in the evaluation of crude oil, natural gas and refined
products inventories will result in an increase in the value of
inventories against shareholders&#146; and to the deferred tax
reserve in the balance sheet as of December 31, 2003 restated in
accordance to IFRS.</p>

<p>With the application of the LIFO method, changes in oil and
refined products prices have no impact on the evaluation of
inventories, that are affected only by declines in volumes. With
the adoption of the weighted-average cost, changes in oil and
refined products prices will have a direct effect with the
recognition of profit or loss on stock deriving from the
difference between the current cost of products sold and the cost
deriving from the application of the weighted-average cost
method.</p>

<p>This restatement will result in an increase in earnings for
the year ended December 31, 2004 related to an increase in
prices.</p>

<blockquote>
    <p><i>4. Different criteria of capitalization of financial
    charges</i></p>
</blockquote>

<p>Under Italian GAAP financial charges are capitalized when
incurred by the amount not financed by internally-generated funds
or contribution by third parties.</p>

<p>Under IFRS, when a relevant time interval is necessary until
the capital good is ready for use, financial charges can be
capitalized as an increase of the asset book value for the amount
of financial charges that could have been saved if capital
expenditure had not been made.</p>

<p>The application of this principle will result in an increase
in the book value of fixed assets against shareholders&#146;
equity and the deferred tax provision in the balance sheet as of
December 31, 2003 and a decrease in earnings for the year ended
December 31, 2004 (the effect of higher amortization is offset
only in part by an increase in capitalized financial charges).</p>

<blockquote>
    <p><i>5. Different recognition of the reserve for
    contingencies</i></p>
</blockquote>

<p>Under Italian GAAP the reserve for contingencies concerns
costs and charges of a determined nature, whose existence is
certain or probable, but whose amounts or occurrence are not
determinable at the period-end. The reserve for contingencies is
stated on an undiscounted basis.</p>

<p>Under IFRS a provision to the reserve for contingencies is
made only if there is a current obligation considered
&quot;probable&quot; as a consequence of events occurred before
period-end deriving from legal or contractual obligations or from
actions or announcements of the company that determine valid
expectations in third parties (implicit obligations), provided
that the amount of the liability can be reasonably determined.
When the financial effect of time is significant and the date of
the expense to clear the relevant obligation can be reasonably
determined, the estimated cost is discounted on the basis of the
risk-free rate of interest and adjusted for the company&#146;s
credit cost.</p>

<p>As for the provision to the reserve for redundancy incentives,
IFRS require the preparation of a detailed formalized
restructuring plan, indicating at least the activities,
locations, categories and approximate number of employees
concerned by the restructuring. The plan must be started-up or
properly communicated to the involved parties before period-end,
generating the expectation that the company will meet its
obligations.</p>

<p>As for provisions for catastrophic risks, Padana Assicurazioni
SpA, in application of rules imposed by the Minister of Industry
on June 15, 1984, makes integrative provisions for the risk of
earthquakes, seaquakes, volcanic eruptions and similar events.
These integrative provisions are not allowed by IFRS in absence
of a current obligation.</p>

<p>As for the reserve for periodic maintenance, under IFRS these
costs are capitalized when incurred as a separate component of
the asset and are depreciated according to their useful lives, as
they do not represent a current obligation.</p>

<p>As a consequence of the absence of a current obligation, the
application of this principle will result in a reversal of the
reserve for contingencies against shareholders&#146; equity, the
deferred tax reserve and a decrease in other assets referred to
the portion of re-insured risks in the balance sheet as of
December 31, 2003 and an increase in earnings for the year ended
December 31, 2004.</p>

<blockquote>
    <p><i>6. Effect of the capitalization of costs for asset
    retirement obligations</i></p>
</blockquote>

<p>Under Italian GAAP, site restoration and abandonment costs are
allocated annually in a specific reserve so that the ratio of the
allocations made and the amount of estimated costs equals the
percentage of depreciation of the relevant asset. In particular,
in the Exploration &amp; Production segment, the costs estimated
to be incurred at the end of production activities for the site
abandonment and restoration are accrued so that the ratio of the
reserve and the amount of estimated costs correspond to the ratio
of cumulative production at period-end and proved developed
reserves at period-end plus cumulative production.</p>

<p>Under IFRS, estimated site restoration and abandonment costs
are recorded in a specific reserve against the relevant asset;
when the financial effect of time is relevant, the estimated cost
is recorded considering the present value of the costs to be
incurred, calculated using a rate representative of the
company&#146;s credit cost. The cost assigned to the different
relevant components of the asset is recognized in the income
statement through the amortization process. The reserve, and
consequently the asset book value, is periodically adjusted to
reflect the changes in the estimates of the costs, of the timing
and of the discount rate.</p>

<p>The application of this principle will result in an increase
in fixed assets, in shareholders&#146; equity, in the reserve for
deferred tax, and a decrease in the reserve for site abandonment
and restoration in the balance sheet as of December 31, 2003 and
an increase in earnings for the year ended December 31, 2004.</p>

<blockquote>
    <p><i>7. Underlifting</i></p>
</blockquote>

<p>In the Exploration &amp; Production segment joint venture
agreements regulate, among other things, the right of each
partner to withdraw its own share of production volumes available
in the period.</p>

<p>Higher production volumes withdrawn as compared to net working
interest volume determine the recognition of a credit by a
partner who has withdrawn lower production volumes as compared to
its net working interest volume.</p>

<p>Under Italian GAAP, this credit is evaluated on the basis of
production costs; under IFRS it is evaluated at current prices at
period end.</p>

<p>The application of this principle will result in an increase
in other assets against shareholders&#146; equity and the reserve
for deferred tax in the balance sheet as of December 31, 2003 and
an increase in earnings for the year ended December 31, 2004.</p>

<blockquote>
    <p><i>8. Write-off of the difference between nominal and
    present value of deferred taxation in business combinations</i></p>
</blockquote>

<p>Under Italian GAAP the difference between the present value of
deferred taxes included in the determination of the fair value of
net assets acquired as part of a business combination and related
deferred tax liabilities recognized at nominal value
(&quot;difference&quot;) is recognized under the item
&quot;accrued assets&quot;.</p>

<p>Under IFRS this difference is recognized under
&quot;Goodwill&quot;; however, in the event of the first
applications goodwill can be adjusted only in case of specific
circumstances that are not relevant to Eni. This difference is
therefore written off because it cannot be considered an asset
under IFRS.</p>

<p>The application of this principle will result in a decrease in
shareholders&#146; equity against deferred tax assets in the
balance sheet as of December 31, 2003 and an increase in earnings
for the year ended December 31, 2004.</p>

<blockquote>
    <p><i>9. Adjustment of tangible and intangible assets</i></p>
</blockquote>

<p><i>9.1 Intangible assets </i>Under Italian GAAP costs for
extraordinary company transactions, costs for the start-up or
expansion of production activities and costs for the
establishment of a company or for issuance of capital stock can
be capitalized.</p>

<p>IFRS requires these costs to be charged against the income
statement, except for establishment and issuance of capital stock
of the parent company that is recognized as a decrease in
shareholders&#146; equity net of the relevant fiscal effect.</p>

<p>Under Italian GAAP costs for software development can be
capitalized under certain circumstances. IFRS pose more stringent
conditions for their capitalization.</p>

<p>The application of these principles will result in a write-off
of intangible assets against a decrease in shareholders&#146;
equity and the recognition of deferred tax assets in the balance
sheet as of December 31, 2003 and an increase in earnings for the
year ended December 31, 2004.</p>

<p><i>9.2 Revaluation of assets </i>Under Italian GAAP
revaluation of tangible assets is allowed under specific law
provisions within the limit of their recovery value.</p>

<p>IFRS prohibit this kind of tangible asset revaluation.</p>

<p>The application of this principle will result in a decrease in
tangible assets against a decrease in shareholders&#146; equity
and the recognition of deferred tax assets in the balance sheet
as of December 31, 2003 and an increase in earnings for the year
ended December 31, 2004. The decrease in tangible assets will
take into account the restatement of gains/losses on disposal on
the basis of the historical cost and the recalculation of
amortization up to December 31, 2003.</p>

<p><i>9.3 Pre-development costs </i>Under Italian GAAP costs
related to preliminary studies, researches and surveys aimed at
testing different options for development of hydrocarbon fields
are recognized under tangible assets.</p>

<p>Under IFRS these costs are considered exploration costs and
are expensed when incurred.</p>

<p>The application of this principle will result in a write-off
of capitalized pre-development costs against a decrease in
shareholders&#146; equity and the recognition of deferred tax
liabilities in the balance sheet as of December 31, 2003 and an
increase in earnings for the year ended December 31, 2004.</p>

<blockquote>
    <p><i>10. Employee benefits</i></p>
</blockquote>

<p>Under Italian GAAP employee termination benefits are accrued
during the period of employment of employees, in accordance with
the law and applicable collective labor contracts.</p>

<p>Under IFRS employee termination benefits (e.g., pension
payments, life insurance payments, medical assistance after
retirement) are defined on the basis of post employment benefit
plans that due to their mechanisms feature defined contributions
plans or defined benefit plans. In the first case, the
company&#146;s obligation consists in making payments to the
state or to a trust or a fund.</p>

<p>Plans with defined benefits are pension, insurance or
healthcare plans which provide for the company&#146;s obligation,
also in the form of implicit obligations (see paragraph 5 &#150;
&quot;Different recognition of the reserve for
contingencies&quot; earlier) to provide nonformalized benefits to
its former employees<a href="#(23)"><sup>23</sup></a>. The
related discounted charges, determined with actuarial assumptions<a
href="#(24)"><sup>24</sup></a>, are accrued annually on the basis
of the employment periods required for the granting of such
benefits.</p>

<p style="page-break-before:always">The application of this
principle will result in a decrease in shareholders&#146; equity,
the recognition of deferred tax assets and a decrease in employee
termination indemnities against an increase in the reserve for
contingent losses, referred in particular to charges for medical
assistance granted upon termination and to pension plans outside
Italy, in the balance sheet as of December 31, 2003 and an
increase in earnings for the year ended December 31, 2004.</p>

<blockquote>
    <p><i>11. Effects on investments accounted for under the
    equity method</i></p>
</blockquote>

<p>Joint ventures and affiliates are accounted for under the
equity method. The application of IFRS to the 2003 balance sheet
of these companies will result in a decrease in investments
against shareholders&#146; equity in the balance sheet as of
December 31, 2003 and an increase in earnings for the year ended
December 31, 2004, related essentially to the elimination of the
amortization of goodwill (see paragraph 12.2 &#150;
&quot;Amortization of goodwill&quot; below).</p>

<blockquote>
    <p><i>12. Other changes in 2004 result under IFRS</i></p>
</blockquote>

<p><i>12.1 Adjustment on gain from sale of a 9.054% interest in
Snam Rete Gas </i>Due to the application of IFRS, net
shareholders&#146; equity to be compared with the sale price for
determining the gain on the sale of a 9.054% interest in Snam
Rete Gas carried out in 2004 will increase by a material amount
related essentially to an increase in the book value of natural
gas pipelines (see paragraph 1 &quot;Different useful lives of
gas pipelines, compression stations, distribution networks and
other assets&quot; above) and deferred tax assets (see paragraph
2.1 &quot;Different recognition of deferred tax&quot; above)
therefore resulting in a decrease in 2004 earnings restated
according to IFRS due to the lower gain as compared to Italian
GAAP.</p>

<p><i>12.2 Amortization of goodwill </i>Under Italian GAAP
goodwill is amortized on a straight-line basis in the periods of
its expected utilization, provided it is no longer than five
years; in case of specific conditions related to the kind of
company the goodwill relates to, goodwill can be amortized for a
longer period not exceeding 20 years.</p>

<p>Under IFRS goodwill cannot be amortized, but it is subject to
a yearly evaluation in order to define the relevant impairment,
if needed. The application of this principle will result in an
increase in 2004 earnings.</p>

<blockquote>
    <p><i>13. Changes in consolidation scope</i></p>
</blockquote>

<p>Italian GAAP allows for the line-by-line consolidation of an
affiliate on which the parent company exercises control at its
Annual General Meeting due to a substantial ownership interest
despite the fact that the parent company does not hold the
majority of voting rights. Under IFRS, and under U.S. GAAP, these
investments are accounted for under the equity method. In
application of this standard, Eni will exclude from consolidation
Saipem SpA in which Eni held 43.29% of voting shares at December
31, 2004 (42.94% of share capital). Saipem&#146;s exclusion from
consolidation will result in a decrease of total asset and
minority interest and an increase of net borrowings related to
the net cash position of this business (loans provided from Group
financial companies are recorded under other assets and
liabilities).</p>

<p>As for joint ventures, Italian GAAP and IFRS allow for
consolidation on a proportional basis or accounting under the
equity method. Until 2004 for Italian GAAP reporting purposes Eni
has been consolidating joint ventures in the Exploration &amp;
Production and Oilfield Services, Construction and Engineering
segments on a proportional basis. From 2005, adopting the IFRS
principle of consistent application of accounting criteria to
similar situations and taking into account the fact that U.S.
GAAP does not allow consolidation on a proportional basis, joint
ventures will be accounted for under the equity method. The
exclusion of joint ventures from consolidation will result in an
increase in total assets and in net borrowings in connection to
the fact that overall these companies have a net cash position.</p>

<p>In summary, according to management&#146;s estimates the
application of IFRS will result in a material increase in
Eni&#146;s total asset and a slight increase in Eni's net
borrowings as of December 31, 2003 and an approximately 3%
reduction in 2004 net income.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 6">Table of Contents</a></h5>

<p><font size="4"><b>Item 6. DIRECTORS, SENIOR MANAGEMENT AND
EMPLOYEES</b></font></p>

<p><font size="3"><b>Directors and Senior Management</b></font></p>

<p>The Board of Directors of Eni SpA&#146;s currently in office
consists of nine members. The table below sets forth the names of
the nine 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 27, 2005 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 2007.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="39%"><b>Name</b></td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%"><b>Position</b></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center"><b>Year
        First Appointed to Board of Directors</b></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center"><b>Age</b></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Roberto Poli</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Chairman </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2002</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">67</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Paolo Scaroni</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Managing Director and CEO </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2005</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">59</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Alberto Cl&#244;</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">1999</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">58</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Renzo Costi</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">1996</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">68</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Dario Fruscio</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2002</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">68</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Marco Pinto</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2005</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">43</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Marco Reboa</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2005</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Mario Resca</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2002</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">60</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="39%">Pierluigi Scibetta</td>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="25%">Director</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="21%"><p align="center">2005</p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="12%"><p align="center">44</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>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 Corte Costituzionale (Constitutional Court),
the Corte dei Conti (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).</p>

<p>On the basis of Eni's By-Laws as amended on April 13, 2005,
the Minister of Economy and Finance in agreement with the
Minister of Productive Activities may appoint another member of
the Board of Directors, with no voting rights.</p>

<p>On June 1, 2005 the new Board of Directors delegated to the
Chairman, Roberto Poli, powers for researching and promoting
integrated projects and strategic international agreements, and
appointed Paolo Scaroni Managing Director and CEO, confirming the
powers already delegated to the previous Managing Director. </p>

<p>Before May 27, 2005, Eni&#146; Board of Directors was composed
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 approved Eni's consolidated financial statements
for the year 2004.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="38%"><b>Name</b></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><b>Position</b></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center"><b>Year
        First Appointed to Board of Directors</b></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><b>Age</b></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Roberto Poli </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Chairman </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">2002</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">67</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Vittorio Mincato </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Managing Director and CEO
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">1998</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">69</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Mario Giuseppe Cattaneo </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Director </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">1998</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">75</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Alberto Cl&#244; </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Director </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">1999</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">58</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Renzo Costi </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Director </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">1996</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">68</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Dario Fruscio </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Director </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">2002</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">68</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Guglielmo Antonio Claudio
        Moscato </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Director </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">2002</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">69</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="38%">Mario Resca </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%">Director </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center">2002</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">60</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="19%"><b>Name</b></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%"><b>Management Position</b></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><b>Year
        First Appointed to Current Position</b></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><b>Total
        Number of Year of Service at Eni</b></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><b>Age</b></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Stefano Cao</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">General Manager for the
        Exploration &amp; Production Division</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2000</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">29</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">54</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Luciano Sgubini</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">General Manager for the
        Gas &amp; Power Division</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2001</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">37</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">65</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Angelo Taraborrelli </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">General Manager for the
        Refining &amp; Marketing Division</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2004</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">32</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">57</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Fabrizio D&#146;Adda</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Health Safety and the Environment</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2002</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">37</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">63</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Amedeo Santucci</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Supply Operations</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2005</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">26</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">61</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Carlo Grande</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Legal Affairs</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">1986</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">28</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">64</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Roberto Jaquinto</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Administration</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">1992</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">43</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">63</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Marco Mangiagalli</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Finance</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">1993</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">27</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">56</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Leonardo Maugeri</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Strategies and International Relations</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2000</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">11</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">41</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Eugenio Palmieri</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Public Affairs and Communication</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2001</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">14</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">58</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Luigi Patron </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">Chief Technology Officer</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2001</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">45</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">65</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">Renato Roffi</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="45%">The Group Senior Vice
        President for Human Resources</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">2000</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center">34</p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center">58</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>The biographies of Eni&#146;s directors and executive officers
are set out below.</p>

<p>Roberto Poli was appointed Chairman of Eni SpA on May 30,
2002. He is Chairman of the Board of Directors of Poli e
Associati SpA, a major consulting firm in the area of corporate
finance, business mergers and acquisitions, business
restructuring. 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. Has been Chairman of Rizzoli-Corriere della Sera SpA and
Publitalia SpA.</p>

<p>Paolo Scaroni graduated at the Universit&#224; Bocconi in Milan
and obtained a master degree in business administration at the
Columbia University in New York. After a few years as consultant
with McKinsey, in 1973 he joined the Saint Gobain Group, where he
held various managing positions in Italy and outside Italy, until
in 1976 he was appointed general manager of the &quot;Vetro
piano&quot; division in Paris with the responsibility of managing
all Saint Gobain&#146;s international activities. From 1985 to
1996 worked with Techint where he was appointed vice-president
and managing director, following the privatization of SIV,
Italimpianti and Dalmine. He joined Pilkington in 1996 and until
2002 was managing director of the group&#146;s head company in
Great Britain. From 2002 to 2005 he was managing director and
general manager of Enel. At present Mr. Scaroni is a director of
&quot;Il Sole 24 Ore&quot; and Marzotto, member of the managing
committee of Confindustria, chairman of Unindustria Venezia in
Italy, while outside Italy is chairman of the Board of Directors
of Alliance UniChem, member of the Supervisory Board of ABN AMRO,
and member of the Board of the Columbia University&#146;s
Business School.</p>

<p>Alberto Cl&#244; is a professor of Industrial Economy at the
University of Bologna, was Minister of Industry and Minister of
Foreign Trade ad interim in 1995 and 1996. During the Italian
semester of presidency of the European Union was chairman of the
Council of Ministers of Industry and Energy of the European
Union. In 1996 was awarded the title of Cavaliere di Gran Croce
al Merito of the Republic of Italy. He is Member of the Board of
Directors of GTP Holding, ASM Brescia SpA, De Longhi SpA,
Italcementi SpA and Societ&#224; Autostrade SpA. He is also President
of the Scientific Committee of Eni Corporate University.</p>

<p>Renzo Costi is an attorney and a consultant. He served as
magistrate from 1964 to 1968 and is currently Professor of
commercial law at the University of Bologna. He was founder, and
currently is co-director, of the magazines &quot;Giurisprudenza
Commerciale&quot;, &quot;Banca Impresa e Societ&#224;&quot; and
&quot;Banca, Borsa e titoli di credito&quot;. He is member of the
Board of Directors of Editrice Il Mulino SpA.</p>

<p>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.</p>

<p>Marco Pinto is a magistrate and notary and held various
positions at Regional Administrative Courts and the Council of
State. He is a professor and dean of the department for economic
sciences at the Scuola Superiore dell&#146;economia e delle
finanze. Since 1994 is a legal counsel and head of the
legislative office of the Ministry of Economy and Finance. From
December 2004 to April 2005 he was head of the technical
secretariat of the vice-president of the Council of Ministers. </p>

<p>Marco Reboa is a chartered accountant and auditor. He is a
professor at the Libero Istituto Universitario Carlo Cattaneo in
Castellanza and author of essays of corporate governance,
economic evaluation and financial statements. He is a member of
the Board of Directors of Seat PG SpA, Interpump SpA, IMMSI SpA,
Intesa Private Banking and Nextra SGR SpA. He is a statutory
auditor of Autogrill SpA and Galbani SpA.</p>

<p>Mario Resca is Chairman and Managing Director of
McDonald&#146;s Italia SpA and Chairman of Italia Zuccheri SpA
(formerly Eridania SpA), of the American Chamber of Commerce in
Italy and of Confimprese, National Board member of U.P.A. (Union
of Associated Advertising Operators), and Director of Mondadori
SpA and Member of the Board of liquidators of Cirio Del Monte
Group in extraordinary administration. Is also chairman of the
RMCH foundation for children. In 2002, was awarded the title of
Cavaliere del Lavoro. After working for Chase Manhattan bank, was
appointed director of Biondi Finanziaria (Fiat Group), from 1976
to 1991 was partner of Egon Zehnder, director of Lancome Italia
and of some companies of the RCS-Corriere della Sera Group and
Versace Group. Is chairman of Finanziaria Sambonet SpA, Kenwood
Italia SpA and founding member of Eric Salmon and Partners.</p>

<p>Pierluigi Scibetta is a chartered accountant and auditor and
has been director and auditor of various companies. In 2003, was
appointed director of the Istituto Superiore per la previdenza e
la sicurezza sul lavoro, of the Gestore del Mercato Elettrico SpA
and of ENEA. In 2004, was appointed director of Nucleco SpA. Is a
professor of Energy Engineering at the University of Perugia.</p>

<p>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.</p>

<p>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.</p>

<p>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 replacing Gilberto Callera who retired.</p>

<p>Fabrizio D&#146;Adda, mining engineer, joined the Eni Group in
1968. He held various executive 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.</p>

<p>Amedeo Santucci, graduated in engineering, joined the Group in
1979 and served various positions.</p>

<p>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
Group companies.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Eugenio Palmieri qualified as journalist in 1971 and worked as
correspondent for &quot;Il Sole 24 Ore&quot;, &quot;Il
Tempo&quot;, &quot;La Stampa&quot;. 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.</p>

<p>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.</p>

<p>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 Group
companies and Vice Chairman of ASIEP (the Italian association of
energy and petroleum companies).</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Auditors</i></b></p>
    <p><i>Statutory Auditors</i></p>
</blockquote>

<p>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, who also
appoints the Chairman of the Board. 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).</p>

<p>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 appointed by the Ordinary Shareholders&#146;
Meeting held on May 27, 2005 for a three-year period; therefore
this Board of Statutory Auditors will expire at the date of the
General Shareholders&#146; Meeting approving Eni&#146;s financial
statements for the financial year 2007. For a description of the
duties of the Board of Statutory Auditors see below.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="45%"><b>Name </b></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><b>Position </b></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center"><b>Year
        First Appointed to Board of Statutory Auditors</b></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Paolo Andrea Colombo</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Chairman </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">2002</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Filippo Duodo</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1998</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Edoardo Grisolia</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">2005</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Riccardo Perotta</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1999</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Giorgio Silva</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1999</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Francesco Bilotti</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Alternate Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">2005</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Massimo Gentile</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Alternate Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">2005</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>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 and who were in charge
until May 27, 2005.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="45%"><b>Name </b></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><b>Position </b></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center"><b>Year
        First Appointed to Board of Statutory Auditors</b></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Andrea Monorchio </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Chairman </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1995</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Luigi Biscozzi </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1999</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Paolo Andrea Colombo </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">2002</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Filippo Duodo </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1998</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Riccardo Perotta </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1999</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Fernando Carpentieri </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Alternate Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1995</p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">Giorgio Silva </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%">Alternate Auditor </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="24%"><p align="center">1999</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p><i>External Auditors</i></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Compensation">Table of Contents</a></h5>

<p><font size="3"><b>Compensation</b></font></p>

<p>Board member compensation is determined by the
Shareholders&#146; Meeting, while remuneration levels of the
Chairman and Managing Director are determined by the Board of
Directors, based on proposals of the Compensation Committee and
after consultation with the Board of Statutory Auditors. With
reference to the powers delegated to the Chairman and Managing
Director, the Board of Directors determined their compensation,
made up of a fixed and a variable part. In line with Consob
provisions, the section &quot;Other Information&quot; of Eni SpA
statutory financial statements indicates: (i) compensation paid
to Board members, Statutory Auditors and General Managers; (ii)
subscription rights for Eni shares assigned within three years
for no consideration (stock grant) and stock options attributed
to the Managing Director and to General Managers; and (iii)
number of shares of Eni SpA and of Eni companies held by Board
members, Statutory Auditors and General Managers. Information as
per (i) and (ii) are included also in the notes to Eni SpA&#146;s
statutory financial statements.</p>

<p>On May 30, 2002 the Shareholders&#146; Meeting determined the
annual compensation of the Chairman (euro 250,000) and of Board
members (euro 68,000). The Shareholders&#146; Meeting of May 28,
2004, increased directors compensation to euro 100,000. In its
meeting of May 30, 2002 the Shareholders&#146; Meeting also
determined a variable compensation up to a maximum of euro 80,000
for the Chairman and euro 20,000 for each Board member to be paid
in accordance with Eni&#146;s positioning as compared to the
other seven major international oil companies for market
capitalization in terms of total return to shareholders in the
reference year. The variable portion of compensation is paid to
the Chairman for euro 80,000 or euro 40,000 and to each Board
member for euro 20,000 or euro 10,000, respectively, if
Eni&#146;s return to shareholders is rated first or second, or
third or fourth in the rating of return to shareholders of the
seven major oil companies. Below fourth position no variable
compensation is paid. In the meeting of July 6, 2004, the Board
confirmed that Eni in 2003 rated fifth in the mentioned
positioning, therefore no variable compensation was paid. In
addition, Board members receive euro 1,000 for the participation
to each meeting of the Board and of Board committees, along with
any expense incurred for performing their duties.</p>

<p>The variable part of the compensation of Chairman and Managing
Director, as well as the variable part of the compensation of
Eni&#146;s top management (General Managers of divisions and
managers holding positions directly reporting to the Chairman and
Managing Director) is related to the achievement of specific
economic and operating objectives (profitability, efficiency,
strategic projects) and share price objectives (price of Eni
shares, comparative total return to shareholders). With reference
to Eni&#146;s performance in 2003, 43% of the remuneration of the
Chairman and of the Managing Director was variable and 40% of
that of the top management was variable. The variable part of
compensation includes, beside the monetary component, Eni&#146;s
stock grant plans (see specific information on stock options and
stock grants in Note 29 to Eni&#146;s consolidated financial
statements, below).</p>

<p>The Shareholders' Meeting held on May 27, 2005 resolved to
approve: (i) the determination of the fixed amount of the annual
compensation to be paid to the Chairman of the Board of Directors
and to each Director at euro 265,000 and euro 115,000
respectively, in addition to the reimbursement of the expenses
incurred because of the office; (ii) the determination of a
variable amount not higher than euro 80,000 for the Chairman of
the Board of Directors and euro 20,000 for the Directors.</p>

<p>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
2004, including a fraction of the year.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">The column
        &quot;Compensation for positions&quot; held at Eni SpA
        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 3 of the Italian Civil Code;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the column &quot;Non cash
        benefits&quot; indicates all fringe benefits, including
        insurance policies;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the column &quot;Bonuses and
        other incentives&quot; indicates the variable part of the
        compensation of the chairman, and of the salary of the
        Managing Director and General Managers of Eni&#146;s
        divisions (employees of Eni);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the column &quot;Other
        compensation&quot; indicates the salary of the Managing
        Director and of the General Managers (employees of Eni),
        as well as the compensation for positions held by
        Statutory Auditors in other Eni companies.</td>
    </tr>
</table>

<p style="page-break-before:always">The following table contains
details of compensation of directors, statutory auditors and
general managers.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="31%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="20%"><font size="1"><b>Position</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Compensation for position</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Non cash benefits</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Bonuses<br>
        and other incentives</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Other compensation</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="20%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="32%">&nbsp;</td>
        <td width="21%">&nbsp;</td>
        <td width="47%"><p align="center"><font size="1"><b>(thousand
        euro)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2"><b>Board of Directors</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Poli Roberto </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><font size="2">Chairman </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2">520 </font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">7 </font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">142 </font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">669</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Mincato Vittorio </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Managing Director </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">509 </font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">735 </font></p>
        </td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">922 </font></p>
        </td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,166</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Cattaneo
        Mario Giuseppe</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><font size="2">Director </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2">108 </font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">108</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Cl&#244; Alberto </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Director </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">110 </font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">110</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Costi Renzo </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><font size="2">Director </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2">110 </font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">110</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Fruscio Dario </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Director </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">102 </font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">102</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Moscato
        Guglielmo </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><font size="2">Director </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2">112 </font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">112</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Resca Mario </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Director </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">105 </font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">105</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2"><b>Board of
        Statutory Auditors</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Monorchio Andrea </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Chairman </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">114 </font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">114</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Biscozzi
        Luigi </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><font size="2">Effective
        Auditor </font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2">91 </font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="2">46 </font></p>
        </td>
        <td align="right" valign="top" width="2%"><font size="2"><sup>(1)</sup></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">137</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Colombo Paolo Andrea </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Effective Auditor </font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">91 </font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">32 </font></p>
        </td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE"><font size="2"><sup>(2)</sup></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">123</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Duodo Filippo</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><font size="2">Effective
        Auditor</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2">90</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="2">54 </font></p>
        </td>
        <td align="right" valign="top" width="2%"><font size="2"><sup>(3)</sup></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">144</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Perotta Riccardo</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE"><font
        size="2">Effective Auditor</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">90</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">45</font></p>
        </td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE"><font size="2"><sup>(4)</sup></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">135</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2"><b>General Manager E&amp;P Division</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Cao Stefano</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">280</font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="2">644</font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">924</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2"><b>General Manager G&amp;P Division</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Sgubini
        Luciano</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">353</font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="2">574</font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">927</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2"><b>General Manager R&amp;M Division</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="31%"><font size="2">Callera
        Gilberto</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">798</font></p>
        </td>
        <td align="right" valign="top" width="2%"><font size="2"><sup>(5)</sup></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="2">243</font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2">1,041</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%" bgcolor="#EEEEEE"><font
        size="2">Taraborrelli Angelo</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="20%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">129</font></p>
        </td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">317</font></p>
        </td>
        <td align="right" valign="top" width="2%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">446</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td align="right" valign="top" width="2%"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td align="right" valign="top" width="2%"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        size="2"><b>2,152</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2"><b>7</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2"><b>2,437</b></font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="2"><b>2,877</b></font></p>
        </td>
        <td align="right" valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="2"><b>7,473</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="31%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="20%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td align="right" valign="top" width="2%"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td align="right" valign="top" width="2%"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<hr size="1" align="left" noshade width="15%" color="#000000">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top">&nbsp;</td>
        <td valign="top">&nbsp;</td>
        <td valign="top">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="3%"><font size="1">(1)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        compensation for appointment as statutory auditor of
        Syndial SpA and Polimeri Europa SpA.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><font size="1">(2)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        compensation for the appointment as statutory auditor of
        position of Saipem SpA.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><font size="1">(3)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        compensation for the appointment as statutory auditor of
        Snamprogetti SpA, Chairman of the Board of Statutory
        Auditors of CEPAV (Consorzio Eni per l&#146;Alta
        Velocit&#224;) Uno and Chairman of the Board of Statutory
        Auditors of CEPAV (Consorzio Eni per l&#146;Alta
        Velocit&#224;) Due from February 24, 2005.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><font size="1">(4)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        compensation for the appointment as statutory auditor of
        Enifin SpA and Chairman of the Board of Statutory
        Auditors of Snam Rete Gas SpA from April 27, 2004.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><font size="1">(5)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Includes
        employee termination indemnities (euro 798,000).</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p>For the year ended December 31, 2004, the aggregate
compensation paid to or on behalf of the executive officers of
Eni SpA was euro 16.04 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, 2004,
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 5.19 million.</p>

<p>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 2004:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="1"><b>Options granted<br>
        in the year</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="1"><b>Options held<br>
        at year end </b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Number of options</font></td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">638,000</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,959,500</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Average
        exercise price (euro) </font></td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">16.576</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">15.131</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Maturity (days)</font></td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,095</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">580</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Expiration
        (days)</font></td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">2,748</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">2,316</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Weighted average exercise price for options
        existing as of December 31, 2004 (euro)</font></td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.434</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>The information in the table above is current to June 14,
2005. No additional options have been granted from December 31,
2004 to that date. Eni issues only ordinary shares. For further
information on Eni&#146;s stock compensation see &quot;Note 29 to
the Consolidated Financial Statements&quot;.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Board practice">Table of Contents</a></h5>

<p><font size="3"><b>Board Practices</b></font></p>

<blockquote>
    <p><b><i>Appropriate Conduct</i></b></p>
</blockquote>

<p>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
behaviors contrary to such principles. These values are stated in
a &quot;Code of Conduct&quot; whose observance by employees is
evaluated by the Board of Directors, based on the annual report
of the Guarantor for the Code of Conduct. The Code of Conduct is
published in Eni&#146;s internet site (www.eni.it).</p>

<p>In its meeting of January 20, 2000 Eni&#146;s Board of
Directors resolved to adopt the Self-discipline Code of Listed
Companies (the &quot;Code&quot;) 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.</p>

<p>In accordance with the request of Borsa Italiana SpA, in
particular the &quot;Guidelines for the preparation of the yearly
report on corporate governance&quot; of February 12, 2003,
follows information on Eni&#146;s corporate governance system. In
preparing this report account has been taken also of the
&quot;Guide to the preparation of the report on corporate
governance&quot; published by Assonime and Emittenti Titoli SpA
in March 2004.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>The Board of Directors: Competencies, Delegate
    Powers and Composition</i></b></p>
</blockquote>

<p>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 the audit of the
financial statements is entrusted to the external auditors
appointed at the Shareholders&#146; Meeting.</p>

<p>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.</p>

<p>In accordance with internationally accepted principles of
corporate governance, the Board of Directors established
committees with consulting and proposing functions.</p>

<p>According to its decision of September 17, 2003, in addition
to exclusive competencies entrusted to it by Article 2381 of the
Civil Code, the Board of Directors has reserved the following
tasks:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">1.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to define corporate
        governance rules for the Company and Group companies,
        including the appointment, definition of functions and
        regulations of Board Committees;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">2.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to define guidelines for the
        internal control system, based on indications provided by
        the relevant Board Committee, and to monitor the
        effectiveness and modes of managing main corporate risks;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">3.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">4.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to determine &#150; on
        proposal of the Managing Director &#150; strategic
        guidelines and objectives at the Company and Group level;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">5.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to examine and approve
        multi-annual strategic, industrial and financial plans at
        the Company and Group level;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">6.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to examine and approve
        yearly budgets of Divisions, of the Company and the
        consolidated Group budget;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">7.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to evaluate and approve
        quarterly accounts and related disclosures and any other
        period accounts and related disclosures provided for by
        the law and to compare quarterly results with planned
        results;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">8.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to evaluate the general
        trends in operations with specific attention to possible
        conflicts of interest;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">9.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to examine and approve
        strategically relevant agreements;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">10.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">11.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to receive from Board
        Committees periodic reports on activities performed,
        according to previously agreed definitions and
        timetables;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">12.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">13.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">14.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to appoint, revoke and
        delegate powers to general managers, on proposal of the
        Managing Director and in agreement with the Chairman;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">15.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to decide major sale and
        purchase transactions of the Company and to provide a
        pre-emptive evaluation of those concerning Group
        companies, in particular:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">sale and purchase
        transactions, as well as conferral of real estate,
        investments, companies of amounts exceeding euro 50
        million;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">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 portfolio and exploration initiatives of
        the Exploration &amp; Production segment in new areas;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">c)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">the provision of loans from
        Eni or its subsidiaries to third parties;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">d)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">the provision from Eni of
        personal and real guarantees to third parties in the
        interest of Eni or its subsidiaries of amounts exceeding
        euro 50 million;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="2%">e)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="92%">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;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">16.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">17.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">to formulate all the
        proposals of decisions to be presented to the
        Shareholders&#146; Meeting.</td>
    </tr>
</table>

<p>The Board entrusted the Chairman with powers for researching
and promoting integrated projects and strategic international
agreements and the Managing Director with all managing powers
except those that cannot be delegated and those reserved to the
Board. 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. In accordance with Article 23 of Eni&#146;s
by-laws, the Board of Directors 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
in which they have a direct or indirect interest. In accordance
with Article 2391 of the Italian Civil Code, Directors inform
other Directors and the Board of Statutory Auditors of any
interest they may have, directly or on behalf of third parties,
in any transaction of Eni.</p>

<p>In accordance with Article 17 of Eni&#146;s by-laws, as
amended by the Board on April 13, 2005, the Board of Directors is
made up by 3 to 9 members. The Shareholders&#146; Meeting
appoints up to nine members. Pursuant to Law Decree No. 332 of
May 31, 1994, modified and converted into Law No. 474 of July
30,1994 as amended by Law No. 350 of December 24, 2003, the
Minister of Economy and Finance in agreement with the Minister of
Productive Activities may appoint another member with no voting
rights. The Board of Directors in charge as of December 31, 2004
was made up by 8 members elected by the Shareholders&#146;
Meeting of May 30, 2002 for a three-year term. On that occasion,
the Minister of Economy and Finance chose not to appoint one
member of the Board, in agreement with the Minister of Productive
Activities. The appointment of the Board of Directors (except for
the Director appointed by the Economy and Finance Minister in
agreement with the Minister of Productive Activities) calls for a
list vote. Only shareholders who, alone or with others represent
at least 1% of voting shares at an ordinary meeting have the
right to present lists for the appointment of directors and
auditors, as well as the Board of Directors (that never made use
of this right). Each shareholder can present or participate in
presenting only one list. Companies controlling a shareholder and
joint controlled companies cannot present, nor participate in
presenting other lists, meaning by subsidiaries the companies
described in Article 2359, paragraph 1 of the Civil Code. The
lists must be deposited at Eni&#146;s headquarters at least ten
days before the date set for the Shareholders&#146; Meeting on
first call (20 days in case of the Board of Directors presenting
a list) and published on newspapers with national distribution
and must include a resume of each candidate.</p>

<p>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.</p>

<p>On February 28, 2005, Eni&#146;s Board of Directors, in
accordance with the provisions of the Code, evaluated the
statements presented by Board members and established that non
executive Board members and the Chairman were independent
according to Italian corporate governance standards as they did
not have any economic relationship with Eni and Eni Group
companies, with the Managing Director and with the Ministry of
Economy and Finance, Eni&#146;s major shareholder, such as to
bias their autonomous judgment nor are they close relatives of
the Managing Director. The Managing Director of Eni was an
employee of Eni. On June 1, 2005, Chairman Roberto Poli and
Directors Alberto Cl&#244;, Renzo Costi, Dario Fruscio, Marco Reboa,
Mario Resca and Pierluigi Scibetta declared that they meet the
independence requirements as provided for by Italian corporate
governance standards.</p>

<p>Eni&#146;s by-laws do not indicate a specific frequency of
meetings. In 2004, the Board of Directors met 18 times (19 in
2003) for an average length of four hours per meeting. The public
is informed of the dates of meetings convened for the approval of
interim results, of periodic reports as provided for by
applicable laws, as well as the dates of Shareholders&#146;
Meetings.</p>

<p>The Board of Directors defined the rules for the calling of
its meetings; in particular, the Chairman convenes Board
meetings, and, in concert with the Managing Director, defines
agenda items. Notice is sent by mail, fax or e-mail within five
days of the meeting&#146;s date, at least 24 hours in advance in
case of urgency. Eni&#146;s by-laws allow meetings held by
teleconference, provided that all participants can be identified
and are allowed to participate in real time. The meeting is
deemed held in the location where Chairman and Secretary are
present.</p>

<p>Board members receive in advance adequate and thorough
information on all issues subject to Board evaluation and
resolutions, except for urgent cases and those for which
confidentiality is deemed necessary. In 2004, on average 90% of
Board members participated to Board meetings and 88% of
independent non executive Board members.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Board Committees</i></b></p>
</blockquote>

<p>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, formed exclusively
by independent, non-executive Board members, and the
International Oil Committee (previously the Oil &amp; Gas
Committee) in which also the Managing Director participates.
Board members receive euro 1,000 for each participation in Board
committees.</p>

<p>During 2004 and until the expiration of former Eni&#146; Board
of Directors on May 27, 2005, the Committees were formed as
follows:</p>

<p><i>Internal Control Committee</i>: Mario Giuseppe Cattaneo
(Chairman), Alberto Cl&#244;, Renzo Costi and Guglielmo Antonio
Claudio Moscato.</p>

<p><i>Compensation Committee</i>: Mario Resca (Chairman), Mario
Giuseppe Cattaneo, substituted in February 2004 by Roberto Poli,
and Renzo Costi.</p>

<p><i>International Oil Committee</i>: Alberto Cl&#244; (Chairman),
Dario Fruscio, Vittorio Mincato and Guglielmo Antonio Claudio
Moscato.</p>

<p>On June 1, 2005 the newly appointed Board of Directors
appointed Mario Resca, Marco Pinto and Pierluigi Scibetta members
of the Compensation Committee; Marco Reboa, Alberto Cl&#244;, Renzo
Costi, Marco Pinto and Pieluigi Scibetta members of the Internal
Control Committee; and Alberto Cl&#244;, Dario Fruscio, Marco Reboa
and Paolo Scaroni members of the International Oil Committee.</p>

<p>The Code suggests the creation of a &quot;Nominating
Committee&quot; 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 in consideration of the
shareholding characteristics of Eni and of the fact that
Directors are appointed on the basis of candidate lists submitted
by shareholders or by the Board of Directors.</p>

<blockquote>
    <p><i>Internal Control Committee</i></p>
</blockquote>

<p>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.</p>

<p>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).</p>

<p>During 2004, the Internal Control Committee convened 15 times,
with an average participation of 88% 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) monitored the initiatives taken by Eni and the
results of action undertaken after being informed of improper
payments on the part of representatives of suppliers of EniPower
to a manager of said company; (iv) 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 2003 financial statements with specific
reference to extraordinary transactions and relations among
functions entrusted with controls at Eni SpA and its
subsidiaries; (v) analyzed the competencies attributed to it by
the Board of Directors with the approval of the new regulation;
(vi) examined the results of an analysis on audit structures in
other Italian Group companies; (vii) monitored the activities
devised by Eni for the application of the &quot;Model of
organization, management and control&quot; as per Legislative
Decrees No. 231/2001 and No. 61/2002; (viii) examined reports
received on the activity of the newly established internal
monitoring unit as per Legislative Decree No. 231/2001; (ix)
examined the implications related to the definition of a
procedure on the treatment of anonymous reports; (x) examined the
results of the bid for the conferral of the function of external
auditors for the 2004-2006 period and expressed to the Board its
favorable opinion for the appointment of PricewaterhouseCoopers
as external auditor for 2004-2006 financial statements; (xi)
examined the audit plans for 2004 financial statements and the
reports required by document No. 260 of audit principles
&quot;Comments on events related to audits addressed to persons
responsible for corporate governance&quot;, as well as the
activities performed by the Groups&#146; external auditors in
2004; (xii) reviewed the situation appointments conferred in 2002
and 2003 by Eni and its consolidated subsidiaries and affiliates
to external auditors registered with Consob and related subjects;
(xiii) 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; and (xiv) monitored the
appointment of additional functions to companies belonging to the
network of the external auditors, expressing its opinion.</p>

<p>Based on Board of Directors&#146; resolution of March 22,
2005, certain responsibilities and competencies of the Internal
Control Committee have been transferred to the Board of Statutory
Auditors effective June 1, 2005 (see below).</p>

<p>In 2005, 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.</p>

<blockquote>
    <p><i>Compensation Committee</i></p>
</blockquote>

<p>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.</p>

<p>During 2004, the Committee met 5 times, with an average
participation of 93% of its members, and accomplished the
following: (i) proposed a regulation for the Committee that was
approved by the Board in its meeting of February 26, 2004; (ii)
reviewed the objectives of the 2004 Group Performance and
Incentive Plan and the results of the 2003 plan; examined the
assignation schemes of the stock option and stock grant plans for
2004 to be approved by the Board of Directors; (iii) presented a
proposal concerning the variable part of the remuneration of the
Chairman and Managing Director; and (iv) examined the positioning
in terms of compensation of the Groups&#146; top management and
the criteria of the annual remuneration policy.</p>

<blockquote>
    <p><i>International Oil Committee</i></p>
</blockquote>

<p>The International Oil 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.</p>

<p style="page-break-before:always">During 2004 the International
Oil Committee met three times, with an average participation of
100% of its members. The first meeting was dedicated to the
analysis of &quot;Hydrocarbon reserves: generalities and
Eni&#146;s evaluation methods&quot; with specific attention to
the technical, economic and regulatory aspects of the booking of
proved reserves of oil and gas and Eni&#146;s behavior in this
area. The second meeting was focused on &quot;The gas bubble in
Europe and Italy&quot; with specific attention to the balance of
supply and demand in Italy and Europe by 2010. During the third
meeting, the discussion concerned &quot;A comparison of
scenarios: dynamics of prices of oil and energy sources&quot;.
Special attention was paid to the methodological approach for the
construction of future price scenarios for oil and gas and the
evaluation of their impact of Eni&#146;s capital expenditure
policies.</p>

<blockquote>
    <p><i>Board of Statutory Auditors</i></p>
</blockquote>

<p>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, paragraph 2 of the
mentioned decree.</p>

<p>The Board of Statutory Auditors comprises five auditors and
two substitute auditors, all appointed by the Shareholders&#146;
Meeting, who also appoints the Chairman, for a three-year term.
Previously the Chairman was appointed with decree of the Minister
of Economy and Finance in consultation with the Minister of
Productive Activities. </p>

<p>Statutory Auditors are 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. 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 on first call and are published on
national newspapers.</p>

<p>Article 28 of Eni&#146;s by-laws, consistently with the
provisions contained in the Decree of the Minister of Justice No.
162 of March 30, 2000, states 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.</p>

<p>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.</p>

<p>On May 30, 2002 the Shareholders&#146; Meeting determined the
yearly 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.</p>

<p>The Shareholders' Meeting held on May 27, 2005 resolved to
approve the determination of the annual compensation to be paid
to the Chairman of the Board of Statutory Auditors and each
statutory auditor at euro 115,000 and euro 80,000, respectively
plus the reimbursement of the expenses incurred.</p>

<p>The Board of Directors in its meeting of March 22, 2005,
attributed to the Board of Statutory Auditors the following
responsibilities and competencies effective June 1, 2005: (i) to
evaluate proposals for the appointment of the issuer&#146;s
external auditors and to present recommendations to the Board of
Directors related to the appointment and termination of such
external auditors to be approved by the Shareholders&#146;
Meeting; (ii) to oversee the work of said auditors engaged for
the purpose of preparing or issuing an audit report or performing
other audit, review or attest services for Eni; (iii) to present
recommendations to the Board of Directors concerning the
resolution of disagreements between management and the auditors
regarding financial reporting; (iv) to approve procedures for:
(a) the receipt, retention and treatment of complaints received
by Eni regarding accounting, internal accounting controls or
auditing matters; (b) the confidential, anonymous submission by
employees of Eni of concerns regarding questionable accounting or
auditing matters; (v) to establish procedures for the
pre-approval of any non-audit service, identified in detail by
the Board, provided to Eni by its auditor and to examine its
reports; (vi) to evaluate requests to engage external auditors to
render non-audit services and to express its opinion to the Board
of Directors; (vii) to examine the periodic reports submitted by
external auditors regarding: (a) all critical accounting policies
and practices to be used; (b) all alternative treatments of
financial information within generally accepted accounting
principles that have been discussed with management officials and
the treatments preferred by the external auditors; (c) other
material written communications between the auditors and the
management of Eni; (viii) to examine any complaint received by
the Managing Director and the Administration Director concerning
significant deficiencies in the design or operation of internal
controls which could adversely affect Eni&#146;s ability to
record, process, summarize and report financial data and any
material weaknesses in internal controls; and (ix) to examine any
complaint received by the Managing Director and the
Administration Director concerning any fraud that involves
management or other employees who have a significant role in
Eni&#146;s internal controls.</p>

<p>The Board of Statutory Auditors has the authority to engage
independent counsel and other advisors as it determines necessary
to carry out its duties, also through Eni structures.</p>

<p>The Board of Statutory Auditors is provided with appropriate
funding to compensate any advisor it employs as well as to cover
its ordinary administrative expenses.</p>

<p>The Board of Statutory Auditors has been selected to fulfill
the role of the audit committee in the US audit committee as
explained below in the section &quot;Significant differences in
corporate governance practices as per Section 303A.11 of the New
York Stock Exchange Listed Company Manual&quot;.</p>

<blockquote>
    <p style="page-break-before:always"><i>Special Powers of the
    State</i></p>
</blockquote>

<p>For a description of the special powers of the State, see
&quot;Item 10 &#150; Memorandum and Articles of Association
&#150; Limitations on Voting and Shareholdings &#150; Special
Powers of the State&quot; below.</p>

<blockquote>
    <p><i>Investor relations and information processing</i></p>
</blockquote>

<p>In concert with the launch of its privatization process, Eni
adopted a communication policy, confirmed by the Code of Conduct,
aimed at promoting an ongoing dialogue with institutional
investors, shareholders and the markets to ensure systematic
dissemination of exhaustive complete, transparent, selective 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. Investor and
shareholder relations are handled by special Eni functions.</p>

<p>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.</p>

<p>Relations with the press are held by the Relations with the
press unit.</p>

<p>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.</p>

<p>Information regarding period reports and major
events/transactions is promptly released to the public, also
through the internet site. A specific section of Eni&#146;s site
contains all press releases, procedures concerning corporate
governance, 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.</p>

<p>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 information, the formal and
substantial legitimacy of behavior of its employees at any
organizational level and the clarity and truthfulness of its
accounting, in accordance with laws and regulations in force.</p>

<p>On December 18, 2002, Eni&#146;s Board of Directors approved a
&quot;Procedure for the disclosure of information to the market
concerning Group activities&quot; published on Eni&#146;s
internet site. The procedure acknowledges Consob guidelines and
the &quot;Guidelines for information to the market&quot; 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.</p>

<p>Eni&#146;s Code of Conduct defines confidentiality duties
upheld by Group employees relating to the treatment of sensitive
information.</p>

<blockquote>
    <p><i>Internal dealing</i></p>
</blockquote>

<p>In compliance with the provisions contained in the Rules of
the markets organized and managed by Borsa Italiana SpA (the
Italian Stock Exchange) and in Consob&#146;s Resolution 13655 of
July 9, 2002, as amended, 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 statutory auditors of Eni, the Magistrate of the Court of
Accounts delegate inspector; and (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.</p>

<p>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 three-month calendar period (the limit set by the Rules of
the Italian Stock Exchange is euro 250,000).</p>

<p>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.</p>

<p>The Code on Internal Dealing prohibits 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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><em><b>Significant differences in corporate governance
    practices as per Section 303A.11 of the New York Stock
    Exchange Listed Company Manual</b></em></p>
</blockquote>

<p><i>Corporate governance</i> standards followed by Italian
listed companies are set forth in the Civil Code and in the
Legislative Decree No. 58 of February 24, 1998, &quot;Single text
containing the provisions concerning financial
intermediation&quot; (Testo unico delle disposizioni in materia
di intermediazione finanziaria, the &quot;TUF&quot;), as well as
by the Self-discipline Code of listed companies (the
&quot;Code&quot;) issued by the Committee for corporate
governance of listed companies. As discussed below, Italian
corporate governance standards differ for certain aspects from
NYSE standards.</p>

<p>The civil code and the TUF assign specific binding and
irrevocable powers and responsibilities to company&#146;s
corporate bodies. The Code, based on this regulatory framework,
provides recommendations on corporate governance intended to
reflect generally accepted best practices. Although these
recommendations are not binding, Borsa Italiana SpA requests
listed companies to publish an Annual Report on corporate
governance which contains, besides a general description of the
corporate governance system adopted, also any recommendation that
was not followed and the reasons for this choice. Eni adopted the
self-discipline code.</p>

<p>Eni&#146;s organizational structure follows the traditional
Italian model of companies which provides for two main separate
corporate bodies, the Board of Directors and the Board of
Statutory Auditors to whom are respectively entrusted management
and monitoring duties. This model differs from the US unitary
model which provides for the Board of Directors as the sole
corporate body responsible for management and, through an audit
committee established within the same Board, for monitoring.</p>

<p>Below is a description of the most significant differences
between corporate governance practices followed by US domestic
companies under the NYSE standards and those followed by Eni.</p>

<blockquote>
    <p><i>Independent Directors</i></p>
</blockquote>

<p><i>NYSE Standards</i> Under NYSE standards listed US
companies&#146; Boards must have a majority of independent
directors. A director qualifies as independent when the Board
affirmatively determines that such director has no certain
material relationship (commercial, industrial, banking,
consultancy, etc.) with the listed company (and its
subsidiaries), either directly, or indirectly. In particular, a
director is not deemed independent if he/she or an immediate
family member has a certain specific relationship with the
issuer, its auditors or companies that have material business
relationships with the issuer (e.g. he/she is an employee of the
issuer or a partner/employee of the auditor). In addition, a
director cannot be considered independent in the three-year
&quot;cooling-off&quot; period following the termination of any
relationship that compromised a director&#146;s independence.</p>

<p><i>Eni Standards</i> In Italy, the Code recommends that the
Board of Directors includes an adequate number of independent
non-executive directors &quot;in the sense that they: a) do not
entertain, directly or indirectly or on behalf of third parties,
nor have recently entertained business relationships with the
company, its subsidiaries, the executive directors or the
shareholder or group of shareholders who controls the company of
a significance able to influence their autonomous judgement; b)
neither own, directly or indirectly or on behalf of third
parties, a quantity of shares enabling them to control the
company or exercise a considerable influence over it nor
participate in shareholders&#146; agreements to control the
company; and c) are not immediate family members of executive
directors of the company or of persons in the situations referred
to in points a) and b).&quot; The independence of directors is
periodically reviewed by the Board of Directors keeping into
account the information provided by the directors themselves. The
Code also recommends that to evaluate independence &quot;in the
case of earlier business dealings, reference should be made to
the previous financial year and for work relationships and
functions of executive director, to the three preceding financial
years.&quot;</p>

<p>The Code provides for a qualitative evaluation, that considers
the whole of the relationships held, in order to check as the
case may be if the existing relationships between the issuer and
the director are such to impair the director&#146;s independence.</p>

<p>In 2004, Eni&#146;s Board of Directors judged that the
Chairman and its non-executive members comply with the
independence standards, as provided for by the Code.</p>

<blockquote>
    <p><i>Meetings of non executive directors</i></p>
</blockquote>

<p><i>NYSE Standards</i> Non-executive directors, including those
who are not independent, must meet at regularly scheduled
executive sessions without management. Besides, if the group of
non-executive directors includes directors who are not
independent, independent directors should meet separately at
least once a year.</p>

<p><i>Eni Standards</i> Neither Eni&#146;s non-executive
directors nor Eni&#146;s independent directors must meet
separately, under the Code&#146;s corporate governance rules.</p>

<blockquote>
    <p><i>Audit Committee</i></p>
</blockquote>

<p><i>NYSE Standards</i> Listed US companies must have an audit
committee that satisfies the requirements of Rule 10A-3 under the
Securities Exchange Act of 1934 and that complies with the
further provisions of the Sarbanes-Oxley Act and of Section
303A.07 of the NYSE Listed Company Manual.</p>

<p><i>Eni Standards</i> In its meeting of March 22, 2005,
Eni&#146;s Board of Directors, making use of the exemption
provided by Rule 10A-3 for non-US private issuers, has identified
the Board of Statutory Auditors as the body that, starting from
June 1, 2005, will be performing the functions required by the
SEC rules and the Sarbanes-Oxley Act to be performed by the audit
committees of non-US companies listed on the NYSE (see paragraph
&quot;Board of Statutory Auditors&quot; earlier). Under Section
303A.07 of the NYSE listed Company Manual audit committees of US
companies have further functions and responsibilities which are
not mandatory for non-US private issuers and which therefore are
not included in the list of functions shown in the paragraph
referenced above.</p>

<blockquote>
    <p><i>Nominating/corporate governance committee</i></p>
</blockquote>

<p><i>NYSE standards</i> US listed companies must have a
nominating/corporate governance committee (or equivalent body)
composed entirely of independent directors that are entrusted,
among others, with the responsibility to identify individuals
qualified to become board members and to select or recommend
director nominees for submission to the shareholders&#146;
meeting, as well as to develop and recommend to the Board of
Directors a set of corporate governance guidelines.</p>

<p><i>Eni Standards</i> This provision is not applicable to
non-US private issuers. The Code allows listed companies to have
within the Board of Directors a committee for directors&#146;
nominees proposals, above all when the Board of Directors detects
difficulties in the shareholders submission of nominees
proposals, as could happen in publicly-owned companies. Eni has
not set up a nominating committee, considering the nature of its
shareholding as well as the circumstance that, under Eni by-laws,
directors are appointed by the Shareholders&#146; Meeting based
on lists presented by shareholders or by the Board of Directors.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Employees">Table of Contents</a></h5>

<p><font size="3"><b>Employees</b></font></p>

<p>At December 31, 2004, Eni&#146;s employees were 71,497 with a
reduction of 5,024 employees (down 6.5% over 2003), of which
4,100 persons outside Italy and 924 persons in Italy.</p>

<p>Employees hired in Italy were 41,311 (57.8% of all Group
employees), of these 38,725 were working in Italy, 2,382 outside
Italy and 204 on board of vessels. As compared to 2003, the 924
unit decline in employees was due to the balance of persons
leaving their job and new hirings (667) and to changes in
consolidation (257).</p>

<p>The process of efficiency improvement and search for new
skills and know-how continued in 2004 with the hiring of 1,993
persons, of which 1,267 with open-end contracts and 726 persons
with a fixed-term contract, most of them with university
qualifications (708 persons of which 424 are engineers) and 517
persons with a high school diploma. During the year 2,660 persons
left their job at Eni, of these 2,007 had an open-ended contract
and 653 a fixed-term contract.</p>

<p>Employees hired and working outside Italy at December 31, 2004
were 30,186 (42.2% of all Group employees), with a 4,100 persons
reduction due to the divestment of Agip do Brasil (3,968
employees), the positive balance (120 persons with fixed-term
contracts) at Saipem and Snamprogetti, and the negative balance
of new hirings with open-end contracts and persons leaving their
job in the rest of the Group (252 employees).</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%"><font size="2"><b>Employees
        at year end</b></font></td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="77%">&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(units)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,715</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,718</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,705</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Gas &amp;
        Power</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">13,317</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,982</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,843</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13,757</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13,277</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,244</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,258</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,050</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,565</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">29,091</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">26,457</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">26,740</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,360</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,705</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,983</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,157</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,332</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,437</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">80,655</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">76,521</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">71,497</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p style="page-break-before:always">The table below sets forth
Eni&#146;s employees at December 31, 2002, 2003 and 2004 in Italy
and outside Italy:</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="77%">&nbsp;</td>
        <td width="23%"><p align="center"><font size="1"><b>(units)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2">Exploration &amp; Production </font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,617</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,555</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,539</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%"><font size="2">Outside
        Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,098</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,163</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">3,166</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,715</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,718</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,705</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%"><font size="2">Gas &amp;
        Power </font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,852</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,302</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">10,216</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,465</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,680</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,627</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">13,317</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,982</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12,843</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2">Refining &amp; Marketing</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">7,332</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,882</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,879</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%"><font size="2">Outside
        Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,425</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,395</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,345</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13,757</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13,277</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9,224</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%"><font size="2">Petrochemicals</font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,744</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,585</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,237</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,514</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,465</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,328</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,258</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">7,050</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,565</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2">Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="62%"><font size="2">Oilfield
        Services</font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,255</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,423</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">2,493</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">22,770</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18,910</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19,139</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">25,025</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">21,333</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">21,632</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2">Engineering</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,433</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,544</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,637</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%"><font size="2">Outside
        Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">633</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,580</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">1,471</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,066</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,124</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,108</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%"><font size="2">Other
        activities</font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,347</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,692</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,959</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">24</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">6,360</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">5,705</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">4,983</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2">Corporate and financial companies</font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,252</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,351</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%"><font size="2">Outside
        Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">80</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">86</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,157</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,332</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">3,437</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%"><font size="2"><b>Total</b></font></td>
        <td valign="bottom" width="15%"><font size="2">Italy</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">43,687</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">42,235</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">41,311</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2"><b>Total</b></font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><font
        size="2">Outside Italy</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">36,968</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">34,286</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">30,186</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">80,655</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">76,251</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">71,497</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="62%" bgcolor="#EEEEEE"><font
        size="2">of which senior managers </font></td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,537</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,733</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,760</font></p>
        </td>
    </tr>
    <tr>
        <td width="61%">&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Share owner">Table of
Contents</a></h5>

<p><font size="3"><b>Share Ownership</b></font></p>

<p>At April 30, 2005, the total number of shares owned by the
directors, statutory auditors and executive officers of Eni SpA
as a Group was 380,965 equal to approximately 0.01% 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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 7">Table of Contents</a></h5>

<p><font size="4"><b>Item 7. MAJOR SHAREHOLDERS AND RELATED PARTY
TRANSACTIONS</b></font></p>

<p><font size="3"><b>Major Shareholders</b></font></p>

<p>As of May 26, 2005, the Ministry of Economy and Finance, Cassa
Depositi e Prestiti SpA, Gruppo Banca Intesa and Gruppo Sanpaolo
IMI were the only persons known by Eni to own more than 2% of any
class of Eni SpA&#146;s voting securities. At such date, the
total amount of Eni SpA&#146;s voting securities owned by these
shareholders was:</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="58%"><font size="1"><b>Title
        of Class</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="center"><font
        size="1"><b>Number of Shares Owned</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="center"><font
        size="1"><b>Percent of Class</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="2">Ministry of Economy and Finance</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">813,443,277</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20.31%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="2">Cassa
        Depositi e Prestiti</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">400,288,338</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">10.00%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="2">Sanpaolo IMI</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">104,562,012</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2.61%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="2">Banca
        Intesa</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">85,764,957</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">2.14%</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>The Ministry of Economy and Finance, in agreement with the
Ministry of Productive Activities, retains certain special powers
over Eni. See &quot;Item 10. Additional Information &#150;
Memorandum and Articles of Association &#150; Limitations on
Voting and Shareholdings &#150; Special Powers of the
State&quot;. For a discussion of Eni share buy-back program see
&quot;Item 16E &#150; Purchases of equity securities by the
issuer and affiliated purchasers&quot;. As of June 10, 2005 there
were 15,700,024 ADRs, each representing five Eni ordinary shares,
outstanding on the New York Stock Exchange, corresponding to
1.96% of Eni&#146;s share capital. See &quot;Item 9&quot;.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Related party">Table of
Contents</a></h5>

<p><font size="3"><b>Related Party Transactions</b></font></p>

<p>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.</p>

<p>Amounts and types of trade and financial transactions with
related parties are described in Note 26 to the Financial
Statements.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Item 8">Table of Contents</a></h5>

<p><font size="4"><b>Item 8. FINANCIAL INFORMATION</b></font></p>

<p><font size="3"><b>Consolidated Statements and Other Financial
Information</b></font></p>

<p>See Item 18 &#150; Financial Statements.</p>

<p><b><i>Disclosure of Legal Proceedings</i></b></p>

<p>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 a
material adverse effect on Eni&#146;s consolidated financial
statements.</p>

<p>The following is a description of the most significant
proceedings currently pending; unless otherwise indicated below,
no provisions have been made for these legal proceedings as Eni
believes that negative outcomes are not probable or because the
amount of the provision is not reasonably quantifiable.</p>

<blockquote>
    <p style="page-break-before:always"><b>Environment</b></p>
</blockquote>

<blockquote>
    <p><i>Eni SpA</i></p>
</blockquote>

<p>In 1997, Grifil SpA summoned AgipPetroli SpA (merged into Eni
SpA in 2002) before the Court of La Spezia. Grifil requested
payment for the remediation of a polluted land parcel part of the
La Spezia refinery (which was closed in 1985), sold to it in 1996
by Italiana Petroli SpA and later merged into 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,
the total amount of which was set by an independent appraisal at
euro 19 million, with AgipPetroli&#146;s share corresponding 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 fulfill its 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 assistance 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 paying the relevant costs on its own. Eni
requested 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 the right of Eni legitimate, based
on the sale contract stipulated between Italiana Petroli and
Grifil, to claim the payment of all clean-up expenses that Eni
will incur as Grifil did not fulfil its obligation. The judge
closed the inquiry phase and stated that the judgment can be
brought to an end. The final decision is expected for July 2005.
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 requested Eni to file the contracts for the remediation
work with the court, in which the amounts paid are recognized.
The contract with an international company specializing in
remediation was signed on April 15, 2004 and immediately
presented to the Court. In order to preserve Grifil&#146;s asset
as a way to recover its credit versus Grifil, Eni, which is
paying for the remediation works, also filed an ordinary
revocation of title, so that, while waiting for the Court&#146;s
ruling, Grifil will not be able to sell the land parcel to third
parties. Recently, this international company specializing in
remediation has updated the cost to be incurred for the
remediation of this land parcel on the basis of new information
regarding the level of soil pollution. This new estimate amounts
to euro 45 million, for which a relevant charge has been accrued
to the risk reserve.</p>

<p>In 1999, the public prosecutor of Gela started an
investigation in order to ascertain alleged soil and sea
pollution caused by the discharge of pollutants by Eni's Gela
refinery. In November 2002, &quot;Italia Nostra&quot; and the
association &quot;Amici della Terra&quot; filed civil claims
related to 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
preliminary hearing was carried out on May 24, 2005. The next
hearing is scheduled on October 18, 2005.</p>

<p>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 emissions in violation of Presidential Decree
No. 203 of 1988. The investigation ended with an action for
events occurred 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 pending.</p>

<p>In 2002, the public prosecutor of Gela started an
investigation in order to ascertain alleged pollution caused by
emissions of the Gela plant, 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. On January 17, 2005, a second inquiry phase commenced in
2003 to ascertain which sort of emissions had eventually produced
the alleged pollution caused by the refinery of Gela, was
completed.</p>

<p>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
requested a technical opinion, not yet concluded, to ascertain
alleged infiltrations of refinery 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 wells for drinking water in an area farther
from and higher than 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.</p>

<p>In June 2002, in connection with a fire in the refinery of
Gela, a penal investigation began concerning arson, environmental
crimes and crimes against natural heritage. On May 12, 2004 the
first hearing was held for an immediate decision. The proceeding
is pending.</p>

<p>In 2002, the public prosecutor of Gela started a penal
investigation concerning the refinery of Gela to ascertain the
quality of ground 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 the presence of infiltrations
of refinery products into the deep water-bearing stratum, due to
a breakage in some tanks. The investigation concerns the
environmental rules about the pollution of water and soil and
illegal disposal of liquid and solid waste materials. With a
decision of 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 activity at the refinery of
Gela in November 17, 2003 following the inquiry phase and many
investigations, inspections and analyses were made by experts
appointed by the judge for the preliminary investigation. These
experts declared there had been no reasonable loss of products
from storage tanks. Thereafter, 42 storage tanks were reopened
and this allowed activity at the facility to restart of the on
January 19, 2004. Following this, another 38 tanks were reopened,
12 remained under seizure at December 31, 2004.</p>

<p>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 fields and related wells and platforms. On March
10, 2005, the Supreme Court confirmed the decision of the Court
of Rovigo lifting the seizure on Eni&#146;s fields, thus
rejecting the appeal presented by the Public Prosecutor. 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
&#150; Pandora 2 Dir wells, and the underwater pipeline for the
transportation of gas to the Casalborsetti facility. Eni believes
it has 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, chaired by Prof. Enzo
Boschi, professor of seismology at the Universit&#224; degli Studi di
Bologna and chairman of the Istituto nazionale di geofisica e
vulcanologia, 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.</p>

<blockquote>
    <p><i>EniPower SpA</i></p>
</blockquote>

<p>In autumn 2004, the Public Prosecutor of Rovigo started an
investigation for alleged crimes related to unauthorized waste
management activities in Loreo. Samples of the soil taken from
Loreo and from EniPower&#146;s site in Mantova are currently
being examined.</p>

<blockquote>
    <p><i>Polimeri Europa SpA</i></p>
</blockquote>

<p>In 2002, the public prosecutor of Gela started a criminal
action in order to ascertain alleged illegally discharge of
effluents produced by the Gela plant, owned by Polimeri Europa
SpA, Syndial SpA (former EniChem SpA) and Raffineria di Gela SpA.
In January 2005, the Court for preliminary investigation, on the
basis of the request of the public prosecutor, resolved to close
this proceeding against all the defendants.</p>

<p>Before the Court of Gela two criminal actions took place, one
in relation to the activity of the F3001 furnace and the other
concerning the ACN plant (disposal of FOK residue). In both cases
the accused were found guilty. For the proceeding concerning the
F3001 furnace the sentence was passed to the civil court for the
quantification of the damage to be paid to the Caltanissetta
Province. Eni appealed the Court&#146;s decision.</p>

<blockquote>
    <p><i>Syndial SpA (former EniChem SpA)</i></p>
</blockquote>

<p>In 1992, the Ministry of Environment summoned EniChem SpA and
Montecatini SpA before the Court of Brescia. The Ministry
requested, primarily, to require environmental remediation for
the alleged pollution caused by the Mantova plant from 1976 until
1990, and provisionally, in case there was no possibility to
remediate, require them to pay environmental damages. The amount
is going to be determined during the proceeding, but it will not
be lower than euro 136 million, or determined by the judge as
compensatory liquidation. EniChem acquired the Mantova plant in
June 1989, as part of the Enimont deal. Edison SpA must hold Eni
harmless or pay compensatory damage for any damage caused to
third parties by plant operations before Montedison&#146;s sale,
even if the damage occurred later.</p>

<p>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. 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 on behalf of the Ministry of Environment and the Council
of Ministers, 5 public entities, 12 associations and other
entities and 48 individual persons. On December 15, 2004 the
Venice Court of Appeals confirmed the preceding judgment,
changing only some marginal parts. As concerns some defendants of
Eni and Syndial, the Court of Appeals decided not to proceed due
to the statute of limitations for some crimes, while it confirmed
the preceding judgment for the other matters. All plaintiffs
appealed this decision before the court of final instance. Eni
recorded a provision to the risk reserve for this legal
proceeding. </p>

<p>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, some of which were
managed by EniChem from 1983 to 1993. At the end of the
preliminary investigation phase, 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. The relevant hearing is set for
September 23, 2005. </p>

<p>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 compensation for environmental damages, not quantified,
caused to the lagoon of Venice by the Porto Marghera plants,
which were already the subject of two previous proceedings
against employees and managers. In a related action, European
Vinyls Corporation Italia presented an action for recourse
against EniChem and Ambiente. The requests for damage of the
Province of Venice and that of EVC Italia to EniChem and Ambiente
have not been quantified. In 2004, the proceedings continued with
both parties presenting memoranda; the next hearing is set on
December 9, 2005.</p>

<p>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 management
relating to the production, disposal and treatment of liquid and
solid waste materials and of obtaining illicit income. Polimeri
Europa and EniChem, as injured parties, named their defense
attorneys. The collection of evidence effected before the hearing
starts in Court has been concluded and preliminary investigations
have ended with the confirmation of accusations.</p>

<p>Press reports have suggested that the Public Prosecutor of
Siracusa has started preliminary investigations on alleged
malformations related to the ingestion of mercury contaminated
sea food.</p>

<p>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 about euro 129 million and
to financial and non-financial damages for euro 250 million (plus
interest and compensation) allegedly caused by Pertusola Sud SpA
(merged into 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 remediation works already underway. The relevant hearing
is set on July 5, 2005 in order to allow parties to submit
memoranda. The Province of Crotone entered the proceeding,
claiming environmental damages for euro 300 million. Syndial was
notified on October 21, 2004 of the request of the Calabria
Region to appear before the Court of Milan in order to obtain a
preliminary damage payment, in anticipation of the expiration of
the special office for managing emergency events in Calabria. The
Region requested payments for over euro 800 million. The first
hearing is set on July 5, 2005.</p>

<p>In March 2004, Sitindustrie SpA, which in 1996 purchased a
plant in Paderno Dugnano from Enirisorse (now merged into Syndial
SpA), summoned Syndial SpA before the Court of Milan, requesting
to establish the responsibility of Syndial SpA in the alleged
pollution of soils around the plant and to require it to pay
environmental damages necessary for remediation. Syndial opposed
the claim based on an absence of the right of action of the
plaintiff. The judge has not yet decided on Syndial's opposition.</p>

<p>In October 2004, Sitindustrie SpA started an analogous
proceeding against Syndial concerning the plant for the
manufacture of products in copper and copper alloy at Pieve
Vergonte. The relevant hearing is set on November 10, 2005;
parties are allowed to submit memoranda prior to the hearing.</p>

<p>In May 2003, the Minister of the 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 the Pieve Vergonte plant. On
September 23, 2004 the judge summoned the parties and defined the
date for the submission of memoranda. At the hearing of March 25,
2005 the judge acquired the memoranda of both parties; the
decision is still pending.</p>

<p>The municipality of Carrara started an action at the Court of
Genova requesting to Syndial SpA the remediation and
reestablishment of the previous environmental conditions at the
Avenza site and the payment of environmental damage. This request
is related to an accident occurred in 1984, as a consequence of
which EniChem Agricoltura SpA (later merged into Syndial SpA), at
the time owner of the site, had carried out safety and
remediation works. The Ministry of the Environment joined the
action and requested the environmental damage payment &#150; from
a minimum of euro 53.5 million to a maximum of euro 78.5 million
&#150; to be broken down among the various companies that managed
the plant in the past. Previous managers include Syndial, called
into the action as a guarantor, Rumianca SpA, Sir Finanziaria SpA
and Sogemo SpA. A technical survey requested by the Court is
underway in order to ascertain the actual environmental damage to
the site.</p>

<blockquote>
    <p><b>Tax Proceedings</b></p>
    <p><i>Eni SpA</i></p>
</blockquote>

<p>With a decree dated December 6, 2000 the Lombardia Region
decided that natural gas used for electricity generation is
subject to an additional regional excise tax in relation to which
Snam SpA (merged into Eni SpA in 2002) will substitute for 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 from 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 No. 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.</p>

<p>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 Eni's
Taranto refinery in 2000, 2001 and 2002 to Eni SpA, as the
successor entity of AgipPetroli SpA following its merger into
Eni. The notification regards about 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 ordinary customs tariffs allow exemption. The formal
assessment does not contain the determination of any
administrative penalties provided for 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. 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. With a
decision of November 26, 2004 the Regional Director accepted
Eni&#146;s appeal and ended the litigation by cancelling the 147
formal assessments.</p>

<p>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 offense 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 about euro 26 million. For the
offense 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, that was concluded in favor of Eni
by the Regional Director.</p>

<blockquote>
    <p><i>Agip Karachaganak BV</i></p>
</blockquote>

<p>In July 2004, relevant Kazakh authorities informed Agip
Karachaganak BV and Agip Karachaganak Petroleum Operating BV,
shareholder and operator of the Karachaganak contract,
respectively, the final outcome of the tax audits performed for
fiscal years 2000 to 2003. Claims by the Kazakh authorities
concern unpaid taxes for a total of dollar 43 million, net to
Eni, and the anticipated offsetting of VAT credits for dollar 140
million, net to Eni, as well as the payment of interest and
penalties for a total of dollar 128 million. Both companies filed
a counterclaim. With an agreement reached on November 18, 2004,
the original amounts were reduced to dollar 22 million net to
Eni; meetings are underway for finding an agreement on residual
matters. Eni recorded a provision to the risk reserve for this
matter.</p>

<blockquote>
    <p><i>Snam Rete Gas SpA</i></p>
</blockquote>

<p>With Regional Law No. 2 of March 26, 2002, the Sicilia Region
introduced an environmental tax upon the owners of primary
pipelines in Sicily (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 for Electricity and Gas 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 the above 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&#146; 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 such
countries and a distortion in access and competition rules. The
Commission initially requested the Italian Government to present
its observations about the argument and later with its opinion
presented on July 7, 2004 it formally requested Italy to cancel
the tax. The Italian Government must conform within two months
from the reception of the opinion. As it did not conform, on
December 20, 2004 the European Commission passed the case to the
Court of Justice requesting a ruling. 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 installment. On April 2, 2004 the Sicilia Region
presented recourse to the Regional Tax Commission at Palermo,
which, on January 5, 2005 rejected this appeal and confirmed the
illegitimacy of the tax, condemning the Region to repay the
amounts paid and interest accrued to Snam Rete Gas. On April 15,
2005 the Sicilia Region presented recourse to the Regional Tax
Commission at Palermo. On November 3, 2003, the Sicilia Region,
following the procedure presented by Snam Rete Gas concerning the
yearly liquidation of the tax for 2002, requested liquidation of
tax, fines and interest (euro 14.2 million) relating to the
unpaid December 2002 installment. On December 30, 2003 Snam Rete
Gas filed a claim with request of suspension of payment as a
result of the liquidation notice received from the Sicilia Region
with the Provincial Tax Commission of Palermo, that, on June 25,
2004 accepted Snam Rete Gas&#146;s claim and decided the
cancellation of the liquidation notice served by the Sicilia
Region. On September 13, 2004 the Sicilia Region appealed this
decision with the Regional Tax Commission at Palermo, which, on
March 7, 2005 rejected this appeal and confirmed the illegitimacy
of the tax. In any case Snam Rete Gas will not have to pay the
tax: if the tax is considered illegitimate in other Courts of
law, the company will have the right to the restitution of the
money. If, to the contrary, the tax is considered legitimated by
the other Courts, the Authority for Electricity and Gas will
include the tax (Decision No. 146/2002 and No. 71/2003) in tariff
with automatic and retroactive effects.</p>

<blockquote>
    <p><b>Other judicial or arbitration proceedings</b></p>
    <p><i>Syndial SpA (former EniChem SpA) - Serfactoring SpA</i></p>
</blockquote>

<p>In 1991, Agrifactoring SpA commenced proceedings against
Serfactoring SpA, a company 49% owned by 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),
and Terni Industrie Chimiche SpA (merged into Agricoltura SpA (in
liquidation), that has been merged into EniChem SpA (now Syndial
SpA)). Such receivables were transferred by Agricoltura and Terni
Industrie Chimiche to Serfactoring, which appointed Agrifactoring
as its agent to collect payments. Agrifactoring guaranteed to pay
the amount of such receivables to Serfactoring, regardless of
whether or not it received payment 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 46 million following partial payment of the
original receivables by the liquidator of Federconsorzi and
various setoffs. These proceedings, which have all been joined,
were decided with a partial judgment, deposited on February 24,
2004: the request of Agrifactoring has been rejected and the
company has been ordered to pay the sum requested by Serfactoring
and damages in favor of Agricoltura, to be determined following
the decision. Agrifactoring appealed against this partial
decision, requesting in particular the annulment of the first
step judgement, the reimbursement of the euro 180 million amount
from Serfactoring along with the rejection of all its claims and
the payment of all expense of the proceeding. The appeal pending
will be discussed in a hearing set for March 16, 2007. The judge
of the Court of Rome, responsible for the determination of the
amount of damages to be paid to Serfactoring and Agricoltura,
decided on May 18, 2005 to suspend this determination until the
publication of the decision of the Court of Appeals, in
accordance with Article 295 of the Code of civil procedure.</p>

<blockquote>
    <p><i>Syndial SpA (former EniChem SpA)</i></p>
</blockquote>

<p>In 2002, EniChem SpA 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 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.
During 2004 the preliminary inquiry was completed. Conclusions
were filed by the parties on the relevant hearing of May 26,
2005. The procedure is due for a decision.</p>

<blockquote>
    <p><i>Snamprogetti SpA</i></p>
</blockquote>

<p>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. In December 2004, Fertinitro and
Snamprogetti reached an agreement that provides for: (i) the
acceptance of the plant in Jose, Venezuela, and in return, the
Stand-by Letter of Credit it provided to Fertinitro; (ii) the
recovery of the Stand-By Letter of Credit; (iii) a settlement
between the parties for the payables related to the awarding of
licenses from Snamprogetti and a dollar 6.5 million compensation
to be paid to Fertinitro; and (iv) the decision of both parties
to supersede all requests/claims made to the arbitration court.
In December 2004 Snamprogetti executed the agreement.</p>

<blockquote>
    <p style="page-break-before:always"><b>Antitrust, EU
    Proceedings, actions of the Authority for Electricity and Gas
    and of other regulatory Authorities</b></p>
</blockquote>

<blockquote>
    <p><i>Eni SpA</i></p>
</blockquote>

<p>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 primary distribution of natural
gas relating to the transportation and distribution tariffs
applied to third parties and the access of third parties to
infrastructure; (ii) fined Snam 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
requesting its suspension. 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 decision on
this dispute is still pending.</p>

<p>With a decision of December 9, 2004, the Italian Antitrust
Authority started an inquiry on the distribution of jet fuel
against six Italian companies, including Eni and some of its
subsidiaries, that store and load jet fuel in the Rome Fiumicino,
Milan Linate and Milan Malpensa airports. The inquiry intends to
ascertain the existence of alleged limitations to competition as
oil companies would agree to divide among themselves the supplies
to airlines. The date set for the closing of the inquiry March
31, 2006.</p>

<p>Detailed information on the investigations by the Antitrust
Authority (BluGas, closed in October 2004 and TTPC, started in
February 2005) is included in the &quot;Operating Review &#150;
Gas &amp; Power segment &#150; Regulatory Framework&quot;, which
is considered an integral part of these Notes.</p>

<p>On April 28, 2005, an inquiry was started, ordered by the
Commission of the European Communities on April 18, concerning
the alleged participation of Eni and its subsidiaries in actions
intended to restrict competition in the sector of paraffin. The
alleged illicit behavior would have taken the form of: (i)
determination of prices and their increase; (ii) subdivision of
market shares; and (iii) exchange of trade secrets, such as
production capacity and sales volumes. Eni may appeal against
this decision with the Court of first instance of the European
Communities.</p>

<p>The U.S. Department of Justice &#150; Antitrust Division on
April 25, 2005 notified a subpoena to Eni Petroleum Co Inc, a
wholly owned Eni subsidiary, in its Houston headquarters
requesting the company to provide information and documents on
waxes activity and setting a hearing for June 20, 2005.</p>

<blockquote>
    <p><i>GNL Italia SpA</i></p>
</blockquote>

<p>With Decision No. 16/2004 published on February 16, 2004, the
Italian Authority for Electricity and Gas initiated a formal
investigation of GNL Italia SpA concerning the refusal to Gas
Natural Vendita Italia SpA to access on an annual basis the
regasification service at Eni&#146;s Panigaglia terminal for
volumes amounting to about 220 million cubic meters of natural
gas.</p>

<p>On November 19, 2003 GNL Italia informed the Authority for
Electricity and Gas, in accordance with Article 24 paragraph 3 of
Legislative Decree No. 164/2000, of the request for
regasification services on a continuous basis from Gas Natural
Vendita Italia for about 220 million cubic meters of natural gas.
GNL Italia offered only spot capacity as the whole regasification
capacity had been conferred to Eni SpA under a contract signed on
January 29, 2002 and filed with the same Authority for
Electricity and Gas, and approved with Decision No. 38/2002. With
Decision No. 120 of July 22, 2004 the Authority for Electricity
and Gas ordered GNL Italia to provide continuous capacity to Gas
Natural Vendita and initiated a formal investigation aimed at
requesting a fine under Article 2, paragraph 20, letter c of Law
No. 481/1995 in violation of Articles 14 and 15 of Decisions No.
120/2001 and 38/2002 of the Authority for Electricity and Gas. In
order to execute the requirements of Decision No. 120/2004, GNL
Italia: (i) obtained by Eni a change in its contract planning of
discharges of ships in order to allow Gas Natural Vendita Italia
to access the regasification services in August and September
with one discharge a month; and (ii) assigned capacity to Gas
Natural Vendita Italia and entered a regasification contract with
Gas Natural Vendita Italia that provide for a discharge per month
in the months of August and September 2004. On November 19, 2004
Eni filed a claim against this decision with the Regional
Administrative Court of Lombardia. This claim, concerning in
particular the Authority for Electricity and Gas&#146;s decisions
on access to regasification services at the Panigaglia terminal
is still pending. With Decision No. 2 of January 12, 2005 the
Authority for Electricity and Gas fined GNL Italia euro 50,000
that the company paid on February 21, 2005.</p>

<blockquote>
    <p><i>Polimeri Europa SpA and Syndial SpA</i></p>
</blockquote>

<p>In December 2002, inquiries were commenced concerning alleged
anti-competitive agreements in the area of elastomers. These
inquiries were commenced concurrently by European and U.S.
authorities. The first product under scrutiny was EP(D)M: the
European Commission submitted to inspection the manufacturing
companies of that product, among which Polimeri Europa SpA and
Syndial and requested information to those two companies and to
their controlling company, Eni SpA. After the inquiries the
Commission decided to open a procedure for violation of
competition laws and notified Eni, Polimeri Europa and Syndial to
that effect on March 8, 2005. Syndial filed memoranda. EP(D)M
manufacture is also under scrutiny in the United States, where
the Department of Justice of San Francisco requested information
and documents to Polimeri Europa Americas Inc, a U.S. subsidiary
of Polimeri Europa and to its deputy chairman and sales manager.
Class actions were filed claiming damages in relation to the
alleged violation. The investigation was also extended to the
following products: NBR, CR, BR, SSBR and SBR. The European
Commission started an investigation regarding BR, SBR, SSBR. On
January 26, 2005 the Commission dropped the charges in relation
to SSBR, while it decided to open a procedure for BR and SBR. NBR
and CR are under scrutiny in Europe and the USA, where class
actions have been started. With regard to CR, Syndial entered
into a plea agreement with the Department of Justice pursuant to
which Syndial would agree to pay a fine of US dollar 9 million,
while the Department of Justice would agree that it will not
bring further criminal charges against Syndial or against its
affiliate companies. A court hearing has been scheduled for June
27, 2005 for the approval of the plea agreement and sentencing.
Eni recorded a provision for this matter. The European Commission
requested Eni, Polimeri Europa and Syndial to provide information
about CR.</p>

<blockquote>
    <p><i>Stoccaggi Gas Italia SpA</i></p>
</blockquote>

<p>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 for Electricity and Gas
repealed Stogit&#146;s proposal and defined tariffs for the first
regulated period. Stogit applied the tariff determined by the two
decisions, but filed an appeal against both Authority for
Electricity and Gas 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 filed an appeal
to the Council of State against the sentence of first instance.</p>

<blockquote>
    <p><i>Distribuidora de Gas Cuyana SA</i></p>
</blockquote>

<p>The agency entrusted with the regulations for the natural gas
market in Argentina (&quot;Enargas&quot;) started a formal
investigation on some operators, among these Distribuidora de Gas
Cuyana SA, a company controlled by Eni. Enargas stated that the
company has applied improperly calculated conversion factors to
volumes of natural gas invoiced to customers and requested the
company to apply the conversion factors imposed by local
regulations from the date of the default notification (March 31,
2004) without prejudice to any damage payment and fines that may
be decided after closing the investigation. On April 27, 2004,
Distribuidora de Gas Cuyana presented a defense memorandum to
Enargas, without prejudice to any possible appeal. At this date
it is not possible to quantify any negative effects deriving from
this action, given its very early phase.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Settled Legal Proceedings</i></b></p>
    <p><i>Eni SpA</i></p>
</blockquote>

<p>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 and,
therefore, annulled 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 relating to the year 1992.
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
favorable to Eni of the 1992 assessment, acknowledged the proper
behavior of Agip. The Regional Tax Commission of Milan with a
decision deposited on June 14, 2004 rejected the appeal of tax
authorities.</p>

<blockquote>
    <p><i>Snamprogetti SpA</i></p>
</blockquote>

<p>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. In December 2004, Fertinitro and
Snamprogetti reached an agreement that provides for: (i) the
acceptance by the client of the plant in Jose, Venezuela, and in
return, the Stand-by Letter of Credit it provided to Fertinitro;
(ii) the recovery of the Stand-By Letter of Credit; (iii) a
settlement between the parties for the payables related to the
awarding of licenses from Snamprogetti and a dollar 6.5 million
compensation to be paid to Fertinitro; and (iv) the decision of
both parties to supersede all requests/claims made to the
arbitration court. In December 2004 Snamprogetti executed the
agreement.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Court inquiries</i></b></p>
</blockquote>

<p>The Milan Public Prosecutor is inquiring on contracts awarded
by Eni&#146;s subsidiary EniPower and on supplies from other
companies to EniPower. The media have provided wide coverage of
these inquiries. It emerged that illicit payments have been made
by EniPower suppliers to a manager of EniPower who has been
immediately dismissed. The Court presented EniPower
(commissioning entity) and Snamprogetti (contractor of
engineering and procurement services) with notices of process in
accordance with existing laws regulating administrative
responsibility of companies (Legislative Decree No. 231/2001). In
its meeting of August 10, 2004, Eni&#146;s Board of Directors
examined the situation mentioned above and approved the creation
by Eni&#146;s CEO of a task force in charge of verifying the
compliance with Group procedures regarding the terms and
conditions for the signing of supply contracts by EniPower and
Snamprogetti and the subsequent execution of works. The Board
also advised divisions and departments of Eni to fully cooperate
in every respect with the Court. From the inquiries performed,
that have not yet covered all relationships with contractors and
suppliers, no default in the organization and internal controls
emerged. For some specific aspects inquiries have been performed
by external experts. In accordance with its transparency and
firmness guidelines, Eni will take the necessary steps for acting
as plaintiff in the expected legal action in order to recover any
damage that might derive to Eni by the illicit behavior of its
suppliers and of their and Eni&#146;s employees.</p>

<p>Within an unrelated investigation on two Eni managers, the
Public Prosecutor of Rome on March 10, 2005 notified Eni of the
seizure of papers concerning Eni&#146;s relations with two oil
product trading companies.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>TSKJ Consortium - SEC Investigations</i></b></p>
</blockquote>

<p>In June 2004, the U.S. Securities and Exchange Commission
notified Eni a request of voluntary assistance, which Eni
promptly carried out, in order to obtain information regarding
the TSKJ consortium in relation to the construction of natural
gas liquefaction facilities at Bonny Island in Nigeria. The TSKJ
consortium is formed by Snamprogetti (Eni 100%) with a 25%
interest and, for the remaining part, by subsidiaries of
Halliburton/KBR, Technip and JGC. The investigations of the
Commission concern alleged improper payments made to certain
public officials from the TSKJ consortium. Snamprogetti started
an internal inquiry on the matter. Other Authorities are
currently investigating this matter. Eni and Snamprogetti are
currently providing information to, and otherwise working with,
the Commission and other Authorities.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Dividends</i></b></p>
</blockquote>

<p>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<a
href="#(25)"><sup>25</sup></a> and the &quot;Risk Factors&quot;
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, subject to such factors, the Board of
Directors expects to recommend to future meetings of shareholders
to maintain the dividend level set in year 2004 (euro 0.90 per
share) in the next four-year plan. The euro 0.90 dividend per
share proposed by Eni&#146;s Board of Directors for fiscal year
2004 represents an increase of 20% with respect to the dividend
for fiscal year 2003 (euro 0.75 per share); the ratio of
aggregate dividends payments to consolidated net income (pay-out)
for year 2004 is approximately 47%. This dividend proposal was
approved by the general shareholders&#146; meeting on May 27,
2005. In 2005, management also plans to start paying dividends on
a six-month basis. This circumstance will not alter the overall
amount of dividends paid for each fiscal year to shareholders.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Significant changes">Table
of Contents</a></h5>

<p><font size="3"><b>Significant Changes</b></font></p>

<p>See &quot;Item 5 &#150; Recent Developments&quot; for a
discussion of Eni&#146;s results of operations in the first
quarter of 2005 and other material developments that occurred
after December 31, 2004.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 9">Table of Contents</a></h5>

<p><font size="4"><b>Item 9. THE OFFER AND THE LISTING</b></font></p>

<p><font size="3"><b>Offer and Listing Details</b></font></p>

<p>The ordinary shares of Eni SpA, nominal value euro 1.00 each
(the &quot;Shares&quot;), are traded on the Blue Chip segment of
the Mercato Telematico Azionario or MTA (&quot;Telematico&quot;),
the Italian screen-based dealer market, which is the principal
trading market for shares in Italy. The Blue Chip segment of
Telematico includes shares of the companies whose market
capitalization amounts to more than euro 800 million. American
Depositary Shares (&quot;ADSs&quot;), each representing five
shares, are listed on the New York Stock Exchange.</p>

<p>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 &quot;Item 3 &#150; Key Information
&#150; Exchange Rates&quot; regarding applicable exchange rates
during the periods indicated below. </p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="69%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Telematico</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>New York<br>
        Stock Exchange</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>High</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Low</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>High</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Low</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="69%">&nbsp;</td>
        <td width="15%"><p align="center"><font size="1"><b>(euro
        per Share)</b></font></p>
        </td>
        <td width="1%">&nbsp;</td>
        <td width="15%"><p align="center"><font size="1"><b>(US$
        per ADS)</b></font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2000</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.496</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">9.536</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">64.875</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">46.5625</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">2001</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15.598</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.564</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">69.700</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">52.500</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2002</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17.145</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.938</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">82.110</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">60.900</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">2003</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15.746</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.881</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">94.980</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">66.150</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">2004</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18.748</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.723</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">126.450</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">92.350</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2"><b>2003</b></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">First
        quarter</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">15.746</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">11.881</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">82.080</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">66.150</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Second quarter</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.284</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.490</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">84.850</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">68.100</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Third
        quarter</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">14.104</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">12.819</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">78.860</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">73.130</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Fourth quarter</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">15.163</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">13.423</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">94.980</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">78.540</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2"><b>2004</b></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">First
        quarter</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">16.640</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">14.723</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">101.340</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">92.350</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Second quarter</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17.980</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16.319</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">108.410</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">97.310</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">Third
        quarter</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">18.584</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">16.272</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">114.510</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">99.020</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">Fourth quarter</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18.748</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17.651</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">126.450</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">110.610</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2"><b>2005</b></font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">First
        quarter</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">20.480</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">17.930</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">135.720</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">118.500</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">January 2005</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">18.720</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">17.930</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">122.760</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">118.500</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">February
        2005</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">19.691</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">18.680</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">131.000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">121.290</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">March 2005</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20.480</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19.744</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">135.720</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">127.810</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">April 2005</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">20.800</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">19.270</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">133.280</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">124.430</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%" bgcolor="#EEEEEE"><font
        size="2">May 2005</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">20.930</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">19.330</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">131.490</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">122.510</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%"><font size="2">June 2005
        (through June 10, 2005)</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">21.560</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">21.150</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">131.860</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">129.270</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>Source: Reuters.</p>

<p>Morgan Guaranty Trust Company of New York (the
&quot;Depositary&quot;) functions as Eni&#146;s depositary bank
issuing American Depositary Receipts (&quot;ADRs&quot;) pursuant
to the Deposit Agreement among Eni, the depositary and the
beneficial owners (&quot;Beneficial Owners&quot;) and registered
holders from time to time of ADRs issued thereunder.</p>

<p>At June 10, 2005 there were 15,700,024 ADRs outstanding,
representing 78,500,120 shares, or 1.96% of all Eni's shares
outstanding, held by 49 holders of record (including The
Depository Trust Company) in the United States of America, 47 of
which are US 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.</p>

<p style="page-break-before:always">The Shares are included in
the S&amp;P/MIB, the new primary Italian stock exchange index
that measures the performance of the 40 leading companies in
leading industries listed on Telematico and Nuovo Mercato. The
constituents of the S&amp;P/MIB are selected according to the
following criteria: sectorial representation, market
capitalization of free-float shares and liquidity. Since
September 20, 2004 S&amp;P/MIB is the principal indicator used to
track the performance of the Italian stock market, and is the
basis for the FIB future contracts, as well as the MIBO option
contracts traded in the Italian Derivatives Market
(&quot;IDEM&quot;) managed by Borsa Italiana SpA (&quot;Borsa
Italiana&quot;). The Shares are the largest component of the
S&amp;P/MIB, with a weighting of approximately 18.7%, as
established by Standard &amp; Poor&#146;s and Borsa Italiana
after reviewing the composition of the S&amp;P/MIB on May 20,
2005. In addition, future and option contracts on the Shares are
traded on IDEM. IDEM facilitates the trading of future and option
contracts on index and shares issued by companies that meet
certain required capitalization and liquidity thresholds.</p>

<p>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 the Shares have
been also trading on a special market, named After Hours trading
market or TAH (&quot;After Hours&quot;), after the closure of the
day time of Telematico under special rules. Since March 28, 2000,
a three-day rolling cash settlement has been applied to all
trades of equity securities in Italy, instead of the previous
five-day settlement.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Markets">Table of Contents</a></h5>

<p><font size="3"><b>Markets</b></font></p>

<p>Telematico is organized and administered by Borsa Italiana
subject to the supervision and control of the Commissione
Nazionale per le Societ&#224; e la Borsa (the National Commission for
Companies and the Stock Exchange or &quot;Consob&quot;), 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 (Societ&#224; per Azioni) 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 has issued rules governing the
organization and the administration of the markets it regulates,
which are Telematico (shares, convertible bonds, pre-emptive
rights, warrants, ETFs and Funds), Nuovo Mercato (high growth
companies), After Hours, Mercato Expandi (small companies), IDEM
(index and stock derivatives market), SeDeX (covered warrants and
certificates), MOT and Euro MOT (bond markets), as well as the
admission to listing on and trading on these markets.</p>

<p>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 previous day&#146;s reference price,
trading in that security will not be permitted until Borsa
Italiana authorizes the trading. The reference price is
calculated for each security as a weighted average of the last
10% of volumes traded in a single day. 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 opening
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.</p>

<p>Effective July 1, 1998, the Italian financial markets are
primarily regulated by Legislative Decree No. 58 of February 24,
1998 (&quot;Decree No. 58&quot;), which consolidated the previous
regulation primarily by restating the provisions of Legislative
Decree No. 415 of July 23, 1996.</p>

<p>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 societ&#224; di intermediazione mobiliare
(securities dealing firms or &quot;SIMs&quot;), 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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 10">Table of Contents</a></h5>

<p><font size="4"><b>Item 10. ADDITIONAL INFORMATION</b></font></p>

<p><font size="3"><b>Memorandum and Articles of Association</b></font></p>

<p>The full text of the memorandum and articles of association of
Eni is attached as an exhibit to this annual report.</p>

<p>Eni is incorporated under the name &quot;Eni SpA&quot;
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 vapors, such
as exploration and development of hydrocarbon fields,
construction and operation of pipelines for transporting the
same, processing, transformation, storage, utilization and trade
of hydrocarbons and natural vapors, all in compliance with
concessions required by law.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Directors</i></b></p>
</blockquote>

<p>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.</p>

<p>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
&quot;Item 6 &#150; Board Practices&quot;.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Limitations on Voting and Shareholdings</i></b></p>
    <p><i>General</i></p>
</blockquote>

<p>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).</p>

<p>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 &quot;person&quot;); 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.</p>

<p>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.</p>

<p>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
(offerta pubblica di acquisto totalitaria) or a preventative
tender offer (offerta pubblica di acquisto preventiva), 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 &quot;&#150; Special Powers of
the State&quot; is however requested for Shares acquired pursuant
to tender offers.</p>

<p>For other limitations that may affect voting rights, see
&quot;&#150; Reporting Requirements and Restrictions on
Acquisitions of Shares&quot;.</p>

<blockquote>
    <p><i>Special Powers of the State</i></p>
</blockquote>

<p>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 &quot;Ministers&quot;), 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 June 10, 2004.</p>

<p>Pursuant to the DPCM of April 1, 2005, Eni modified its
by-laws in order to apply the provisions of Law No. 350 of
December 24, 2003 (2004 budget law), which modified Article 2 of
Law Decree No. 332 of May 31, 1994, as modified and converted
into Law No. 474 of July 30, 1994, regarding the Special Powers
of the State. Eni's by-laws acknowledges in Article 6.2 that the
Special Powers of the State are as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">opposition with respect to
        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, which
        &#150; as per Decree issued by the Minister of Treasury
        on October 16, 1995 &#150; include those representing at
        least 3% of share capital with the right to vote at the
        ordinary shareholders' meeting. Any opposition is
        required to be expressed within ten days of the date of
        the notice to be filed by the Board of Directors at the
        time a request is made for registration in the
        Shareholders' Register if the Minister considers that
        such an acquisition may prejudice the vital interests of
        the Italian State. Until the ten-day period has expired,
        the voting rights or any rights other than the economic
        rights connected with the shares representing a material
        shareholding may not be exercised. If the opposition
        power is exercised on the basis that prejudice may be
        caused by the operation to the vital interests of the
        Italian State, the transferee may not exercise the voting
        rights or any rights other than the economic rights
        connected with the shares representing a material
        shareholding and must sell said shares within one year.
        If the shareholder fails to comply, the law court, upon
        request of the Minister of Economy and Finance, will
        order the sale of the shares representing a material
        shareholding according to the procedures set forth in
        Article 2359-ter of the Civil Code. The act through which
        the opposition power is exercised may be appealed by the
        transferee before the Regional Administrative Court of
        Lazio within sixty days as of its issue;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">opposition with respect to
        the subscription of Shareholders' pacts or agreements as
        per Article 122 of Legislative Decree No. 58 of February
        24, 1998, involving &#150; as per Decree issued by the
        Minister of Treasury on October 16, 1995 &#150; at least
        3% of the share capital with the right to vote at
        ordinary shareholders' meetings. In order to allow the
        exercise of the above mentioned opposition power, Consob
        notifies the Minister of Economy and Finance of the
        relevant pacts or agreements communicated to it pursuant
        to the aforementioned Article 122 of Legislative Decree
        No. 58 of February 24, 1998. The opposition power may be
        exercised within ten days of the date of the notice by
        Consob. Until the ten-day period has expired, the voting
        rights or any rights other than the economic rights
        connected with the shares held by the shareholders who
        have subscribed the above mentioned pacts or agreements
        may not be exercised. If the opposition power is
        exercised on the basis that prejudice may be caused by
        said pacts or agreements to the vital interests of the
        Italian State, the shareholders pacts or agreements shall
        be null and void. If in the shareholders&#146; meetings
        the shareholders who have signed shareholders&#146; pacts
        or agreements behave as if those pacts or agreements
        disciplined by Article 122 of Legislative Decree No. 58
        of February 24, 1998 were still in effect, the
        resolutions approved with their vote, if determining for
        the approval, may be sued. The act through which the
        opposition power is exercised may be sued by the
        shareholders who joined the above mentioned pacts or
        agreements before the Regional Administrative Court of
        Lazio within sixty days as of its issue;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">c)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">veto power with respect to
        resolutions to dissolve the company, to transfer the
        business, to merge, to demerge, to transfer the company's
        registered office abroad, to change the company objects
        and to amend the by-laws cancelling or modifying the
        powers indicated in this Article. The act through which
        the veto power is exercised shall be duly motivated in
        consideration of the prejudice the related resolution may
        cause to the vital interests of the Italian State and may
        be sued by the dissenting Shareholders before the
        Regional Administrative Court of Lazio within sixty days
        as of its issue; </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">d)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">appointment of one Board
        member with no voting rights. Should such appointed
        Director lapse, the Minister of Economy and Finance in
        agreement with the Minister of Productive Activities will
        appoint his substitute. </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>With a decision published on May 23, 2000, the European Court
of Justice declared that Italy, in granting the Minister of
Economy and Finance &quot;special powers&quot; 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.</p>

<p>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. 488/1999 and DPCM of June 10, 2004 and Law No. 350 of
December 24, 2003 which included provisions limiting those
&quot;special powers&quot; of the Minister of Economy and
Finance. These are currently being analyzed by the European
Commission.</p>

<p><i>Minority Protection Provisions</i></p>

<p>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 voto di lista
(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
&quot;&#150; Special Powers of the State&quot;) 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.</p>

<p>Under Eni&#146;s by-laws, the election of the members of the
Board of Directors will proceed as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">a)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">b)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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.</td>
    </tr>
</table>

<p>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.</p>

<p>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 companies controlled by the same
entity of the company presenting a list shall not present nor
take part in the presentation of another candidate list.</p>

<p>Several provisions of Italian legislation are intended to
increase the protection of minority shareholders. In particular:
(i) shareholders&#146; meetings must be called also upon 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) (Article 2367
c.c.); (ii) at an extraordinary shareholders&#146; meeting
resolutions may be passed with the approval of at least twothirds
of the shares represented at the meeting, on the first, second or
third call (Articles 2368-2369 c.c.) by the majority, one-third
and one-fifth of the outstanding share capital, respectively;
(iii) shareholders&#146; actions against the Board of Directors,
the Statutory Auditors. Official Receivers and the Managing
Director may be initiated by shareholders holding at least 5% of
the outstanding shares (Article 2393 bis c.c.); (iv) the actions
for which a single shareholder may sue (Article 2394-bis c.c.);
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 (Article 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.</p>

<blockquote>
    <p><i>Reporting Requirements and Restrictions on Acquisitions
    of Shares</i></p>
</blockquote>

<p>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.</p>

<p>The obligation to notify also applies to any direct or
indirect participation owned through ADSs.</p>

<p>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.</p>

<p>Further, the reduction of the foregoing interest below the
relevant thresholds must be notified within the same terms.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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. 58/1998 regulates
additional cross-ownership matters as follows.</p>

<p>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.</p>

<p>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.</p>

<p>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
&quot;Purchase by Eni SpA of its Own Shares&quot;.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<blockquote>
    <p><i>Shareholders&#146; Meetings</i></p>
</blockquote>

<p>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.</p>

<p>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 (&quot;calls&quot;)
and because Eni SpA is listed such notice may specify three calls
for extraordinary shareholders&#146; meetings.</p>

<p>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.</p>

<p>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.</p>

<p>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 Gazzetta Ufficiale 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.</p>

<p>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 &quot;Description of American
Depositary Receipts &#150; Voting of Deposited Securities&quot;.
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.</p>

<p>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;
and (iii) the amendment to the by-laws to adequate its provisions
to the current legislation.</p>

<p>Pursuant to Legislative Decree No. 213 dated June 24, 1998,
Eni SpA&#146;s shares have been &quot;dematerialized&quot; (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.</p>

<p>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.</p>

<p>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.</p>

<p>Meetings of Eni&#146;s shareholders are conducted according to
the &quot;Eni SpA&#146;s Shareholders&#146; Meeting
Regulation&quot; 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
adequate the provision to the new rules content in the Civil Code
for the participation to the Shareholders&#146; Meetings.</p>

<blockquote>
    <p><i>Subscription Rights</i></p>
</blockquote>

<p>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.</p>

<blockquote>
    <p><i>Liquidation Rights</i></p>
</blockquote>

<p>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.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Material Contracts"><font size="3">Table of Contents</font></a></h5>

<p><font size="3"><b>Material Contracts</b></font></p>

<p>None.</p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Exchange controls"><font
size="3">Table of Contents</font></a></h5>

<p><font size="3"><b>Exchange Controls</b></font></p>

<p>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.</p>

<p>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 Ufficio Italiano Cambi (the Italian Exchange
Office) by residents or non-residents that effect such transfers
directly, or by banks, securities dealers or Poste Italiane SpA
(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.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Taxation">Table of Contents</a></h5>

<p><font size="3"><b>Taxation</b></font></p>

<p><i>The information set forth below is a summary only, and
Italian, the 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></p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Italian Taxation</i></b></p>
</blockquote>

<p>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.</p>

<blockquote>
    <p><i>Income tax</i></p>
</blockquote>

<p>Dividends received by Italian resident individuals in relation
to participations exceeding 2% of the voting rights or 5% of the
share capital (&quot;substantial participations&quot;) 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 43% 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.</p>

<p>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%.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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%.</p>

<p>Based on the certification procedure required by the Italian
Tax Authorities, to benefit from the direct application of the
15% substitute tax the U.S. shareholder must provide the dividend
paying agent with a certificate obtained from the U.S. Internal
Revenue Service (the &quot;IRS&quot;) 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.</p>

<p>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
(&quot;treaty refund&quot;) between the domestic rate and the
treaty one by filing specific forms (certificate) with the
Italian Tax Authorities.</p>

<p style="page-break-before:always">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 the 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.</p>

<blockquote>
    <p><i>Transfer tax</i></p>
</blockquote>

<p>In general terms, no Italian transfer tax is payable in the
following cases:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">contracts executed on
        regulated financial markets;</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">contracts concerning shares
        of non-listed companies, executed between non-resident
        persons and banks or other authorized intermediaries
        (provided that certain conditions are met);</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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.</td>
    </tr>
</table>

<p>The mentioned exemption from transfer tax does not entail the
application of stamp duty or registration tax.</p>

<p>To provide a more complete picture, transfer tax is currently
payable at the following rates:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">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.</td>
    </tr>
</table>

<p><i>Capital Gains Tax</i></p>

<p>This paragraph applies with respect to capital gains out of
the scope of a business activity carried out in Italy.</p>

<p>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.</p>

<p>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:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the so-called
        &quot;administered savings&quot; tax regime (risparmio
        amministrato), 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</td>
    </tr>
    <tr>
        <td valign="top" width="2%">&#149;</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="96%">the so-called
        &quot;portfolio management&quot; tax regime (risparmio
        gestito) 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.</td>
    </tr>
</table>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<blockquote>
    <p><i>Inheritance and Gift Tax</i></p>
</blockquote>

<p>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.</p>

<p>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.<br>
</p>

<blockquote>
    <p><b><i>United States Taxation</i></b></p>
</blockquote>

<p>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
&quot;functional currency&quot; is not the U.S. dollar.</p>

<p>This summary is based on the tax laws of the United States
(including the Internal Revenue Code of 1986, as amended, (the
&quot;Code&quot;) 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.</p>

<p>As used in this section, the term &quot;U.S. Holder&quot;
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
the 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.</p>

<p>The discussion does not address any aspects of the 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.</p>

<p>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 the United States
federal income tax.</p>

<blockquote>
    <p><i>Dividends</i></p>
</blockquote>

<p>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 in taxable years beginning 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 121-day period
beginning 60 days before the ex-dividend date and meet other
holding period requirements. Dividends we pay with respect to the
shares or ADSs generally will be qualified dividend income. The
amount of the dividend distribution that you must include in your
income as a U.S. holder will be the US dollar value of the euro
payments made, determined at the spot euro/US dollar rate on the
date the dividend distribution is includible in your income,
regardless of whether the payment is in fact converted into US
dollars. Generally, any gain or loss resulting from currency
exchange fluctuations during the period from the date you include
the dividend payment in income to the date you convert the
payment into US dollars will be treated as ordinary income or
loss and will not be eligible for the special tax rate applicable
to qualified dividend income.</p>

<p>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 &quot;Italian
Taxation &#150; Income Tax&quot; above, for the procedures for
obtaining a tax refund. Dividends paid on the Shares will be
treated as income from sources outside the United States.
Dividend paid in taxable years beginning before January 1, 2007
generally will be of &quot;passive&quot; or &quot;financial
services&quot; income, and dividends paid in taxable years
beginning after December 31, 2006 will, depending on your
circumstances, be &quot;passive&quot; or &quot;general&quot;
income which, in either case, is treated separately from other
types of income for purpose of computing the foreign tax credit
allowable to you.</p>

<blockquote>
    <p><i>Sale or Exchange of Shares</i></p>
</blockquote>

<p>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 US 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 US 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 before January 1,
2009 is generally subject to a maximum tax rate of 15%. 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.</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Docs on Display">Table of Contents</a></h5>

<p><font size="3"><b>Documents on Display</b></font></p>

<p>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 100F Street, NE,
Room 1580, 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 www.sec.gov.
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.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 11">Table of Contents</a></h5>

<p><font size="4"><b>Item 11. QUALITATIVE AND QUANTITATIVE
DISCLOSURES ABOUT MARKET RISK</b></font></p>

<p>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.</p>

<p>Derivative financial instruments are utilized by Eni to reduce
these risks, as explained below.</p>

<p>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.</p>

<p>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.</p>

<p>Eni does not enter into derivative transactions on a
speculative basis.</p>

<p>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. </p>

<p>For a comprehensive disclosure of market risk see Note 23 to
the Consolidated Financial Statements.</p>

<p>&nbsp;</p>

<blockquote>
    <p><b><i>Foreign Exchange Risks</i></b></p>
</blockquote>

<p>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 US dollars and British pounds versus euro.</p>

<p>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:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%"><font size="1">(million
        euro) </font></td>
        <td valign="bottom" width="18%"><p align="center"><font
        size="1"><b>Dec. 31, 2003<br>
        Notional amount</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="center"><font
        size="1"><b>Dec. 31, 2004<br>
        Notional amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Forward exchange contracts</font></td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,165</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">8,501</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Options</font></td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">550</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">91</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>6,715</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>8,592</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>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 increase of
euro 2,336 million in forward exchange contracts is primarily due
to Enifin SpA&#146;s transactions in order to hedge financial
short-term payables of Eni Coordination Center SA (euro 1,785
million).</p>

<p>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. The decrease of euro 459 million is essentially
due to the expiration of options of the Oilfield Services,
Construction and Engineering segment (euro 296 million) and Gas
&amp; Power segment (euro 144 million).</p>

<p>Based on the results of the sensitivity analysis, Eni
estimates that the potential impact of a 10% decrease or increase
in euro exchange rates of each currency on the fair value of
existing financial instruments as of December 31, 2004 amounts to
euro 78 million (euro 57 million at December 31, 2003).</p>

<p>&nbsp;</p>

<blockquote>
    <p><em><b>Interest Rate Risk</b></em></p>
</blockquote>

<p>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:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%"><font size="1">(million
        euro) </font></td>
        <td valign="bottom" width="18%"><p align="center"><font
        size="1"><b>Dec. 31, 2003<br>
        Notional amount</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="center"><font
        size="1"><b>Dec. 31, 2004<br>
        Notional amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="2">Interest rate swaps </font></td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,690</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">5,663</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="2">Interest
        rate collars</font></td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">74</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><p align="right"><font
        size="2">33</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,764</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="18%" bgcolor="#EEEEEE"><p
        align="right"><font size="2"><b>5,696</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="18%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>Eni enters into interest rate derivatives, particularly
&quot;interest rate swaps&quot;, 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.</p>

<p>Eni uses &quot;interest rate collars&quot; 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.</p>

<p>Based on the results of a sensitivity analysis, Eni estimates
that a 10% decrease or increase in the euro would impact on the
fair value of existing financial instruments as of December 31,
2004, in the amount of euro 78 million.</p>

<p>Based on the results of a sensitivity analysis, Eni estimates
that a 10% decrease or increase in the interest rate yield on the
fair value of existing financial instruments as of December 31,
2004 amounts to euro 82 million (euro 90 million at December 31,
2003).</p>

<p>&nbsp;</p>

<blockquote>
    <p><em><b>Commodity Price Risk</b></em></p>
</blockquote>

<p>Eni enters into commodity-based derivative contracts to
minimize the commodities price volatility in order to conform
costs to revenues.</p>

<p>In natural gas trading activity, Eni uses exchange traded
crude oil forward contracts with the aim of hedging the risk
related to natural gas sales at fixed prices following supply
contracts at variable costs with an indexation to the petroleum
products in the international markets.</p>

<p>In refining and marketing activities of petroleum products,
Eni uses derivative instruments with the aim of reducing the
uncertainty of the market prices.</p>

<p>The expiration date of contracts is less than 1 year. The
table below summarizes trade derivative contracts at December 31,
2003 and 2004.</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Buy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Sell</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Buy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Sell</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Crudes</font></td>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(barrels)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">6,629,544</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,146,000</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1,497,121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">2,949,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Oil
        products</font></td>
        <td valign="bottom" width="16%"><p align="right"><font
        size="1">(tonnes)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">159,849</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">381,200</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">434,150</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">287,411</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="2">Oil products</font></td>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(gallons)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">104,580</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4,620</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="2">Electricity</font></td>
        <td valign="bottom" width="16%"><p align="right"><font
        size="1">(megawatthour)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="2">804,507</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%">&nbsp;</td>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>Eni&#146;s commodity market risk exposure as of December 31,
2004 is not material (not material at December 31, 2003 as well).</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 12">Table of Contents</a></h5>

<p><font size="4"><b>Item 12. DESCRIPTION OF SECURITIES OTHER
THAN EQUITY SECURITIES</b></font></p>

<p>Not applicable.</p>

<p align="center">&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 13-15">Table of Contents</a></h5>

<p align="center"><font size="4"><b>PART II</b></font></p>

<p><font size="4"><b>Item 13. DEFAULTS, DIVIDEND ARREARAGES AND
DELINQUENCIES</b></font></p>

<p>None.</p>

<p><font size="4"><b>Item 14. MATERIAL MODIFICATIONS TO THE
RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS</b></font></p>

<p>None.</p>

<p><font size="4"><b>Item 15. CONTROLS AND PROCEDURES</b></font></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 16A">Table of Contents</a></h5>

<p><font size="3"><b>Item 16A. Board of Statutory Auditors
Financial Expert</b></font></p>

<p>Eni&#146;s Board of Statutory Auditors has determined that
four members of Eni&#146;s Board of Statutory Auditors, qualify
as &quot;audit committee financial expert&quot;, as defined in
Item 16A of Form 20-F. These four members are: Paolo Andrea
Colombo, who is the Chairman of the Board, and Filippo Duodo,
Riccardo Perotta and Giorgio Silva.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 16B">Table of Contents</a></h5>

<p><font size="3"><b>Item 16B. Code of Ethics</b></font></p>

<p>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 www.eni.it, under the section Publications -
Corporate Responsibility - Code of Practice.</p>

<p>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.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 16C">Table of Contents</a></h5>

<p><font size="3"><b>Item 16C. Principal Accountant Fees and
Services</b></font></p>

<p>PricewaterhouseCoopers SpA has served as Eni independent
public auditor for fiscal years 2002 and 2003 and as Eni
principal independent public auditor for fiscal year 2004, for
which audited consolidated financial statements appear in this
annual report on Form 20-F.</p>

<p>The following table shows 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:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" height="10">&nbsp;</td>
        <td valign="bottom" width="39%" height="10"><p
        align="center"><font size="1"><b>For the year ended
        December 31,</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" height="5">&nbsp;</td>
        <td valign="bottom" width="39%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" height="10"><font
        size="1">(thousands of euro)</font></td>
        <td valign="bottom" width="18%" height="10"><p
        align="center"><font size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%" height="10">&nbsp;</td>
        <td valign="bottom" width="18%" height="10"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" height="5">&nbsp;</td>
        <td valign="bottom" width="18%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="3%" height="5">&nbsp;</td>
        <td valign="bottom" width="18%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"
        height="9"><font size="2">Audit fees</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="9"><p align="right"><font size="2">7,177</font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="9">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE"
        height="9">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="9"><p align="right"><font size="2">9,344</font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="9">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" height="10"><font
        size="2">Audit-related fees</font></td>
        <td valign="bottom" width="12%" height="10"><p
        align="right"><font size="2">296</font></p>
        </td>
        <td valign="bottom" width="6%" height="10">&nbsp;</td>
        <td valign="bottom" width="3%" height="10">&nbsp;</td>
        <td valign="bottom" width="12%" height="10"><p
        align="right"><font size="2">136</font></p>
        </td>
        <td valign="bottom" width="6%" height="10">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"
        height="10"><font size="2">Tax fees</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="10"><p align="right"><font size="2">695</font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="10"><p align="right"><font size="2">344</font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" height="10"><font
        size="2">All other fees</font></td>
        <td valign="bottom" width="12%" height="10"><p
        align="right"><font size="2">71</font></p>
        </td>
        <td valign="bottom" width="6%" height="10">&nbsp;</td>
        <td valign="bottom" width="3%" height="10">&nbsp;</td>
        <td valign="bottom" width="12%" height="10"><p
        align="right"><font size="2">54</font></p>
        </td>
        <td valign="bottom" width="6%" height="10">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"
        height="10"><font size="2"><b>Total</b></font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="10"><p align="right"><font size="2"><b>8,179</b></font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"
        height="10"><p align="right"><font size="2"><b>9,878</b></font></p>
        </td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"
        height="10">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" height="5">&nbsp;</td>
        <td valign="bottom" colspan="2" width="18%" height="5"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="bottom" width="3%" height="5">&nbsp;</td>
        <td valign="bottom" colspan="2" width="18%" height="5"><hr
        size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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 secretarial
services.</p>

<blockquote>
    <p><i>Pre-approval Policies and Procedures of the Internal
    Control Committee</i></p>
</blockquote>

<p>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 audit services and to the company&#146;s
capital markets transactions have been listed by the Internal
Control Committee.</p>

<p>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.</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 16D">Table of Contents</a></h5>

<p><font size="3"><b>Item 16D. Exemptions from the Listing
Standards for Audit Committees</b></font></p>

<p>Making use of the exemption provided by Rule 10A-3 for non-US
private issuers, Eni has identified the Board of Statutory
Auditors as the body that, starting from June 1, 2005, will be
performing the functions required by the SEC rules and the
Sarbanes-Oxley Act to be performed by the audit committees of
non-US companies listed on the NYSE (see &quot;Item 6 &#150;
Board of Statutory Auditors&quot; above).</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 16E">Table of Contents</a></h5>

<p><font size="3"><b>Item 16E. Purchases of Equity Securities by
the Issuer and Affiliated Purchasers</b></font></p>

<p>Pursuant to Italian law, a company may purchase its own 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 27, 2005 authorized the continuation of the
share buy-back program for an 18-month period starting on May 27,
2005 and up to 400 million ordinary shares, nominal value euro 1
each, for an aggregate amount not exceeding euro 5.4 billion. 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 26, 2005. At that
date, Eni owned 245.158 million shares, equal to approximately
6.12% of Eni&#146;s share capital, for an aggregate amount of
euro 3,440 million (corresponding to an average purchase price of
euro 14.032 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.</p>

<p>The following tables present purchases of treasury shares by
Eni from the beginning of the program through May, 2005:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="39%"><font size="1"><b>Period</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Numbers of shares (million)</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Average price<br>
        (euro per share)</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Total cost<br>
        (million euro)</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Share capital %</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="2">2000</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">44.4</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">12.92</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">574</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.11</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="2">2001</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">110.0</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">13.58</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">1,494</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">2.75</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="2">2002</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">52.2</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">14.74</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">770</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">1.30</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="2">2003</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">23.9</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">13.76</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">329</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">0.60</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="2">2004</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">4.2</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">16.60</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">70</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="2">0.10</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="2">Total held
        as of December 31, 2004</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">234.8</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">13.79</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">3,238</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">5.86</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="49%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Total number of shares purchased</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Average price paid per share<br>
        </b><strong>(euro)</strong></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Total number of shares purchased, as part of
        publicly announced plans or programs</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Maximum number of shares that may yet be
        purchased under the plans or programs</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="49%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="48%"><font size="2">January
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">106,049 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">14.798</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">106,049 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">169,311,485 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">February
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">204,410 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">15.102</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">204,410 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">169,107,075 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">March 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">484,724 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">16.006</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">484,724 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">168,622,351 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">April 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">151,245 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">16.878</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">151,245 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">168,471,106 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">May 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">875,834 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">16.554</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">875,834 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">167,595,272 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">June 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">985,337 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">17.040</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">985,337 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">166,609,935 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">July 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">748,871 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">16.532</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">748,871 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">165,861,064 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">August
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">309,382 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">16.819</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">309,382 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">165,551,682 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">September
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">312,933 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">17.398</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">312,933 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">165,238,749 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">October
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">165,238,749 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">November
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">51,450 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">18.014</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">51,450 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">165,187,299 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">December
        2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">165,187,299 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">January
        2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">560,260 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">18.169</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">560,260 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">164,627,039 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">February
        2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">854,920 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">19.061</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">854,920 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">163,772,119 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">March 2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">1,297,742 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">19.916</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">1,297,742 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">162,474,377 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">April 2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">3,764,013 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">19.494</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">3,764,013 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">158,710,364 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="2">May 2005</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">4,030,350 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">19.800</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">4,030,350 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="2">154,680,014 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<p align="center">&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Item 17-18">Table of Contents</a></h5>

<p align="center"><font size="4"><b>PART III</b></font></p>

<p><font size="4"><b>Item 17. FINANCIAL STATEMENTS</b></font></p>

<p>Not applicable.</p>

<p><font size="4"><b>Item 18. FINANCIAL STATEMENTS</b></font></p>

<p>Index to Financial Statements:</p>

<p>&nbsp;</p>

<p><a href="#RIA">Report of Independent Registered Public
Accounting Firm</a></p>

<p><a href="#Othere RIA">Other Auditors&#146; Reports on the
consolidated financial statements of certain major subsidiaries
of Eni SpA (separate financial statements not included herein)</a></p>

<p><a href="#Balance Sheet">Consolidated Balance Sheets at
December 31, 2003 and 2004</a></p>

<p><a href="#Statemet of Income">Consolidated Statements of
Income for the years ended December 31, 2002, 2003 and 2004</a></p>

<p><a href="#Cash flows">Consolidated Statements of Cash Flows
for the years ended December 31, 2002, 2003 and 2004</a></p>

<p><a href="#Supplementam Info">Supplemental Information for the
years ended December 31, 2002, 2003 and 2004</a></p>

<p><a href="#Change in Sh">Consolidated Statements of Changes in
Shareholders&#146; Equity for the years ended December 31, 2002,
2003 and 2004</a></p>

<p><a href="#Notes">Notes to the Consolidated Financial
Statements</a></p>

<p>&nbsp;</p>

<h5 align="right"><a href="#toc" name="Item 19">Table of Contents</a></h5>

<p><font size="4"><b>Item 19. EXHIBITS</b></font></p>

<p><a href="#By Laws">1. By-laws as amended as of April 13, 2005</a></p>

<p><a href="#Exibit 8">8. List of subsidiaries</a></p>

<p><a href="#Code of Ethics">11. Code of Ethics</a></p>

<p>Certifications:</p>

<p><a href="#12.1">12.1. Certification pursuant to Rule 13a-14(a)
of the Securities Exchange Act</a></p>

<p><a href="#12.2">12.2. Certification pursuant to Rule 13a-14(a)
of the Securities Exchange Act</a></p>

<p><a href="#13.1">13.1. 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)</a></p>

<p><a href="#13.2">13.2. 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)</a></p>

<p align="center">&nbsp;</p>

<p>&nbsp;</p>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p align="center"><b>SIGNATURES</b></p>

<p>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.</p>

<p>Date: June 24, 2005</p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td width="100%">Eni SpA</td>
    </tr>
    <tr>
        <td width="100%">&nbsp;</td>
    </tr>
    <tr>
        <td width="100%">/s/ FABRIZIO COSCO</td>
    </tr>
    <tr>
        <td width="100%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td width="100%">&nbsp;</td>
    </tr>
    <tr>
        <td width="100%">Fabrizio Cosco</td>
    </tr>
    <tr>
        <td width="100%">Title: Deputy Company Secretary</td>
    </tr>
</table>
</div>

<p align="left">&nbsp;</p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="RIA">Table of Contents</a></h5>

<p align="center"><b>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</b></p>

<p>To the Shareholders of<br>
Eni SpA</p>

<p>We have audited the accompanying consolidated balance sheets
of Eni SpA and its subsidiaries as of December 31, 2004 and 2003,
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, 2004, 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 consolidated financial statements based on our
audits. We did not audit the financial statements of certain
subsidiaries, which statements reflect total assets of 24 percent
of the related consolidated totals as of December 31, 2003, and
total revenues of 15 and 13<b> </b>percent, of the related
consolidated totals for each of the two years in the period ended
December 31, 2003. 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. </p>

<p>We conducted our audits of these statements 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, assessing
the accounting principles used and significant estimates made by
management, and evaluating the overall financial statement
presentation. We believe that our audits and the reports of other
auditors provide a reasonable basis for our opinion.</p>

<p>In our opinion, the financial statements referred to above
present fairly, in all material respects, the consolidated
financial position of Eni SpA and its subsidiaries at December
31, 2004 and 2003, and the consolidated results of their
operations and their cash flows for each of the three years in
the period ended December 31, 2004, in conformity with the
Italian law governing consolidated financial statements and
generally accepted accounting principles in Italy.</p>

<p>Accounting laws and principles generally accepted in Italy
vary in certain significant respects from accounting principles
generally accepted in the United States of America. Information
relating to the nature and effect of such differences is
presented in Notes 27, 28 and 29 to the consolidated financial
statements.</p>

<p><b>PricewaterhouseCoopers SpA</b></p>

<p>Rome, June 24, 2005</p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Othere RIA">Table of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><strong>REPORT OF INDEPENDENT REGISTERED PUBLIC
ACCOUNTING FIRM</strong></p>

<p align="center"><b>Italian statutory consolidated financial
statements</b></p>

<p>To the Stockholders<br>
of Saipem S.p.A.</p>

<p>We have audited the Italian statutory consolidated balance
sheets of Saipem SpA and subsidiaries (the &quot;Group&quot;) as
of December 31, 2003, and 2002, and the related consolidated
statements of income, changes in shareholders' equity and cash
flows for each of 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 based on our
audits. We did not audit the 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.</p>

<p>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 other auditors provide a reasonable basis for our
opinion.</p>

<p>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 and 2002, and the consolidated results of
their 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.</p>

<p>April 6, 2004<br>
Milan, Italy</p>

<p><strong>Reconta Ernst &amp; Young S.p.A.</strong></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITORS&#146; REPORT</b></p>

<p align="center"><b>Italian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Italgas &#150; Societ&#224; Italiana per il Gas p.A.</p>

<p>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.</p>

<p>We conducted our audit 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
statements presentation. We believe that our audit and the
reports of others auditors provide a reasonable basis for our
opinion.</p>

<p>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.</p>

<p>Turin, Italy<br>
April 6, 2004</p>

<p><strong>Reconta Ernst &amp; Young S.p.A.</strong></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a
href="#tocpage">Table of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory consolidated financial
statements</b></p>

<p>To the Stockholders<br>
of Italgas-Societ&#224; Italiana per il Gas p.A.</p>

<p>We have audited the Italian statutory consolidated balance
sheet of Italgas-Societ&#224; Italiana per il Gas pA and subsidiaries
(the &quot;Group&quot;) 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.</p>

<p>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 other auditors provide a reasonable basis for our
opinion.</p>

<p>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.</p>

<p>Turin, Italy<br>
April 3, 2003</p>

<p><strong>Reconta Ernst &amp; Young S.p.A.</strong></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITORS&#146; REPORT</b></p>

<p align="center"><b>Slovenian statutory financial statements</b></p>

<p>To the Stockholders<br>
of ADRIAPLIN d.o.o.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>Ljubljana, Slovenia<br>
March 12, 2004</p>

<p><b>Ernst &amp; Young d.o.o.</b></p>

<hr noshade>

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of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Compagnia Napoletana di Illuminazione e Scaldamento col Gas
S.p.A.</p>

<p>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.</p>

<p>We conducted our audit 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 audit provides a reasonable
basis for our opinion.</p>

<p>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.</p>

<p>Naples, Italy<br>
March 31, 2004</p>

<p><b>Reconta Ernst &amp; Young S.p.A.</b></p>

<hr noshade>

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of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>REPORT OF INDEPENDENT AUDITORS</b></p>

<p>To the Stockholders of<br>
Eni Portugal Investment S.p.A.</p>

<p>We have audited the balance sheets of Eni Portugal Investment
S.p.A. (an Italian corporation) as of December 31, 2003, and the
related statements of income, changes in shareholders' equity and
cash flows for each year in the two-year period ended December
31, 2003 expressed in euro (which financial statements are not
enclosed 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.</p>

<p>&nbsp;</p>

<p>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
provide a reasonable basis for our opinion.</p>

<p>&nbsp;</p>

<p>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, 2003 and the results of their operations and their
cash flows for each year in the two-year period ended December
31, 2003, in conformity with accounting principles generally
accepted in Italy.</p>

<p>Rome, Italy<br>
May 7, 2004</p>

<p><b>Deloitte Touche S.p.A.</b></p>

<hr noshade>

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of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Fiorentinagas S.p.A.</p>

<p>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.</p>

<p>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 audit
provides a reasonable basis for our opinion.</p>

<p>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.</p>

<p>Florence, Italy<br>
April 8, 2004</p>

<p><b>Reconta Ernst &amp; Young SpA</b></p>

<hr noshade>

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of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Fiorentinagas Clienti S.p.A.</p>

<p>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.</p>

<p>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 audit
provides a reasonable basis for our opinion.</p>

<p>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.</p>

<p>Florence, Italy<br>
April 8, 2004</p>

<p><strong>Reconta Ernst &amp; Young SpA</strong></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Italgas Pi&#249; S.p.A.</p>

<p>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.</p>

<p>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 audit
provides a reasonable basis for our opinion.</p>

<p>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.</p>

<p>Turin, Italy<br>
April 5, 2004</p>

<p><b>Reconta Ernst &amp; Young S.p.A.</b></p>

<hr noshade>

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of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITORS&#146; REPORT</b></p>

<p align="center"><b>Hungarian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Mol-G&#225;z Kereskedelmi Kft.</p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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 66 of the notes to the financial statements. The validity of
this basis depends on TIG&#225;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.</p>

<p><b>Ernst &amp; Young Kft.</b></p>

<p>Budapest, Hungary<br>
February 13, 2004</p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Napoletanagas Clienti S.p.A.</p>

<p>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.</p>

<p>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 audit
provides a reasonable basis for our opinion.</p>

<p>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.</p>

<p>Naples, Italy<br>
March 31, 2004</p>

<p><b>Reconta Ernst &amp; Young SpA</b></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>REPORT OF INDEPENDENT AUDITORS</b></p>

<p>To the stockholders of<br>
Snam Rete Gas S.p.A.</p>

<p>We have audited the consolidated balance sheets of Snam Rete
Gas S.p.A. (an Italian corporation) and its subsidiary (the
&quot;Company&quot;) as of December 31, 2003, and the related
consolidated statements of income, changes in shareholders&#146;
equity and cash flows for each of the periods in the two-year
period ended December 31, 2003 expressed in euro (which
consolidated financial statements are not enclosed 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.</p>

<p>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 consolidated
financial statements are free of material misstatement. Our audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the consolidated financial statements.
An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as
evaluating the overall consolidated financial statement
presentation. We believe that our audits provide a reasonable
basis for our opinion.</p>

<p>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 SpA
and subsidiary as of December 31, 2003 and the results of their
operations and their cash flows for each year in the two-year
period ended December 31, 2003, in conformity with accounting
principles generally accepted in Italy.</p>

<p><b>Deloitte Touche</b></p>

<p>Milan, Italy<br>
April 5, 2004</p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITOR'S REPORT</b></p>

<p align="center"><b>Italian statutory consolidated financial
statements</b></p>

<p>To the Stockholders<br>
of Societ&#224; Azionaria per la Condotta di Acque Potabili p.A.
(&quot;Acque Potabili S.p.A.&quot;)</p>

<p>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.</p>

<p>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 audit
provides a reasonable basis for our opinion.</p>

<p>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.</p>

<p>Turin, Italy<br>
April 6, 2004</p>

<p><b>Reconta Ernst &amp; Young S.p.A.</b></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><b>INDEPENDENT AUDITORS&#146; REPORT</b></p>

<p align="center"><b>Hungarian statutory financial statements</b></p>

<p>To the Stockholders<br>
of Tig&#225;z Rt.</p>

<p>We have audited the Hungarian statutory balance sheet of
Tig&#225;z 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.</p>

<p>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.</p>

<p>In our opinion, the Hungarian statutory financial statements
referred to above present fairly, in all material respects, the
financial position of Tig&#225;z 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.</p>

<p>Budapest, Hungary<br>
March 18, 2004</p>

<p><b>Ernst &amp; Young Kft</b></p>

<p align="center">&nbsp;</p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Balance Sheet">Table of Contents</a></h5>

<p align="center"><font size="2"><b>BALANCE SHEETS<br>
(Amounts stated in million euro)</b></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>Note</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>ASSETS</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b>Current
        assets:</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Marketable securities</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">1,277</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">1,292</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Receivables,
        net</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">12,877</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">14,204</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Inventories, net:</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><i>Crude
        oil, natural gas and petroleum products</i></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">1,604</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">1,558</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><i>Chemical products</i></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">636</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">700</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><i>Work in
        progress on long-term contracts</i></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">434</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">404</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><i>Other</i></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">619</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">658</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Total
        inventories</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">3,293</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">3,320</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Accrued interest and other</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">533</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">602</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b><i>Total
        current assets</i></b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>19,603</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>20,682</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>Non-current assets:</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#FFFFFF"><font
        size="1">Fixed assets, net of accumulated depreciation,
        amortization and writedowns</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#FFFFFF"><p align="right"><font size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#FFFFFF"><p align="right"><font size="1">36,360</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#FFFFFF"><p align="right"><font size="1">37,616</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Receivables, net</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">2,320</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">1,999</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Investments</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">3,160</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">3,282</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Intangible assets</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">3,610</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">3,190</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Other </font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">2,283</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">2,343</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b><i>Total non-current assets</i></b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>47,733</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>48,430</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b>TOTAL
        ASSETS</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>67,336</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>69,112</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>LIABILITIES AND SHAREHOLDERS' EQUITY</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b>Current
        liabilities:</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Short-term debt</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">7,428</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">4,115</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Current
        portion of long-term debt</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">490</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">936</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Trade accounts payable</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">5,887</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">6,286</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Advances</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">1,551</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">1,352</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Taxes payable</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">2,183</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">2,514</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Accrued
        expenses and other</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">3,841</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">3,845</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b><i>Total current liabilities</i></b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>21,380</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>19,048</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b>Non-current
        liabilities:</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Long-term debt</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">8,336</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">7,674</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Reserve
        for employee termination indemnities</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">555</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">590</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Reserves for contingencies</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">5,708</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">6,102</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Deferred
        and other non-current income tax liabilities</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">2,442</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">2,768</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Accrued expenses and other</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">597</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">464</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b><i>Total
        non-current liabilities</i></b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>17,638</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>17,598</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>TOTAL LIABILITIES</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>39,018</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>36,646</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b><i>Minority
        interests</i></b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>1,622</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>2,128</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>Shareholders&#146; equity:</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Capital
        stock 4,004,424,476 fully paid shares nominal value 1
        euro each (4,002,922,176 shares at December 31, 2003)</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">4,003</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">4,004</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Reserves</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">20,272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">22,289</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Treasury
        shares</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(3,164</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(3,229</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Net income for the year</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">5,585</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">7,274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b><i>Total
        shareholders&#146; equity</i></b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>26,696</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>30,338</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>TOTAL LIABILITIES AND SHAREHOLDERS&#146;
        EQUITY</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>67,336</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>69,112</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p align="center">&nbsp;</p>

<p align="center"><font size="2"><i>(The accompanying notes are
an integral part of these consolidated financial statements)</i></font></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Statemet of Income">Table of Contents</a></h5>

<p align="center"><font size="2"><b>STATEMENTS OF INCOME</b></font><font
size="1"><b><br>
(Amounts stated in million euro, except per Share and per ADS
data)</b></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="49%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>Note</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="49%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1"><b>Revenues:</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1">Net sales
        from operations</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">47,922</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">51,487</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">58,382</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1">Other income and revenues</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">1,080</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">913</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">1,298</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1"><b>Total
        revenues</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>49,002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>52,400</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>59,680</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1"><b>Operating expenses:</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1">Purchases,
        services and other</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">31,893</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">34,566</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">39,092</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1">Payroll and related costs</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">3,103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">3,166</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">3,264</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1">Depreciation,
        amortization and writedowns</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">17</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">5,504</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">5,151</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">4,861</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1"><b>Operating income</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>8,502</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>9,517</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>12,463</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1"><b>Interest
        and other income (expense):</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1">Financial income (expense) and exchange
        differences, net <sup>(a)</sup></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(167</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(154</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1">Other
        income (expense) from investments</font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">229</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1"><b>Total interest and other income (expense)</b></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>(124</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>(171</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>134</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1">Income
        before extraordinary income (expense) and income taxes</font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">8,378</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">9,346</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">12,597</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1">Extraordinary income (expense) <sup>(b)</sup></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(29</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1"><b>Income
        before income taxes</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>8,349</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>9,395</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>12,541</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1">Income taxes</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(3,127</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(3,241</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(4,653</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1"><b>Income
        before minority interest</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>5,222</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>6,154</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>7,888</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1">Minority interest in net income</font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(629</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(569</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(614</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1"><b>Net
        income</b></font></td>
        <td align="right" valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>4,593</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>5,585</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>7,274</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%"><font size="1"><b>Earnings
        per Share (based on the weighted-average number of shares
        outstanding for each period)</b> <sup>(c)</sup></font></td>
        <td align="right" valign="bottom" width="6%"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>1.20</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>1.48</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>1.93</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="49%" bgcolor="#EEEEEE"><font
        size="1"><b>Earnings per ADS (based on five shares per
        ADS)</b> <sup>(c)</sup></font></td>
        <td align="right" valign="bottom" width="6%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>6.00</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>7.39</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>9.64</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p><font size="1">___________________</font></p>

<p><font size="1">(a) Included financial income and expense and
changes in value of financial assets net of interest capitalized.<br>
(b) Before income taxes.<br>
(c) Amount in euro.</font></p>

<p align="center"><font size="2"><i>(The accompanying notes are
an integral part of these consolidated financial statements)</i></font></p>

<p align="center">&nbsp;</p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Cash flows">Table of Contents</a></h5>

<p align="center"><font size="2"><b>STATEMENTS OF CASH FLOWS<br>
</b></font><font size="1"><b>(Amounts stated in million euro)</b></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="14%"><p
        align="center"><font size="1"><b>2002</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="14%"><p
        align="center"><font size="1"><b>2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="14%"><p
        align="center"><font size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="14%"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="14%"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td align="center" valign="bottom" width="14%"><hr
        size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash flows from operating activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Net income</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">4,593</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">5,585</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">7,274</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Minority interest in net income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">629</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">569</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">614</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Depreciation
        and amortization</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">4,962</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">4,710</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">4,566</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Writedowns, net</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">591</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">586</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">235</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Net change
        in other reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">96</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">144</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">408</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Net change in the reserve for employee
        termination indemnities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Gain on
        disposal of assets, net</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(152</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(35</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(374</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Dividend income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Interest
        income</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(322</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(197</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(201</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Interest expense</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">568</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">574</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">575</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Exchange
        differences</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(65</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(279</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(76</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Extraordinary expense (income), net</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">29</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Income
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">3,127</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">3,241</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">4,653</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><i>Cash generated from operating income before
        changes in working capital</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14,057</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14,880</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17,694</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">(Increase)
        decrease:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- inventories</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(209</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(162</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(68</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- accounts
        receivable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(925</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(622</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(1,183</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- accrued interest and other current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">88</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- trade
        and other accounts payable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">555</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">451</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">704</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- accrued expenses and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(198</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1"><i>Cash
        from operations</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">13,547</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">14,415</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">17,130</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Dividends received</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">147</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">189</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">200</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Interest
        received</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">164</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">234</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">197</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Interest paid</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(579</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(432</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(541</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Net
        extraordinary expense paid</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(162</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(50</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(400</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Income taxes paid</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,539</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,529</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,224</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1"><b>Net
        cash provided from operating activities</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1"><b>10,578</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1"><b>10,827</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1"><b>12,362</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash flows from investing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Investments:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,205</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(959</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(732</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- fixed
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(6,843</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(7,843</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(6,771</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- new consolidated subsidiaries and businesses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,043</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(283</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(272</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(702</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(316</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(683</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        financing receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(661</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(1,095</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">(428</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- change in accounts payable in relation to
        investments and capitalized depreciation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">193</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">207</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(9,892</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(10,778</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(8,943</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Disposals:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">- intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">77</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- fixed assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">475</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">177</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">260</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">- consolidated subsidiaries and businesses</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">270</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">338</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">563</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">113</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">57</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">- securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">194</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">301</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">648</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- financing receivables</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">234</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,758</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">830</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">- change in accounts receivable in relation to
        disposals</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,363</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,720</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,367</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1"><b>Net cash used in investing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>(8,529</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>(8,058</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>(6,576</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash flows from financing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">Proceeds from long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,145</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">3,118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Payments of long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(503</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(485</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(797</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">Additions to (reductions of) short-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,094</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(1,004</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(4,051</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,736</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,629</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(3,619</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">Payments by minority shareholders</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">62</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Sale (purchase) of additional interests in
        subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,606</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">631</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">Dividends to minority shareholders</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(3,035</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(3,011</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(3,077</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(770</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(329</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1"><b>Net cash used in financing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>(110</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>(4,304</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>(6,128</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><i>Effect of change in consolidation area</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">57</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1"><i>Effect of exchange rate differences</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(29</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Net cash flow for the year</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,875</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(1,642</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(359</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1"><b>Cash and cash equivalent at beginning of the
        year</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>1,390</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>3,265</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#FFFFFF"><p
        align="right"><font size="1"><b>1,623</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash and cash equivalent at end of the year</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,265</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,623</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,264</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p align="center"><font size="2"><i>(The accompanying notes are
an integral part of these consolidated financial statements)</i></font></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Supplementam Info">Table of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><font size="2"><b>SUPPLEMENTAL INFORMATION<br>
</b></font><font size="1"><b>(Amounts stated in million euro)</b></font></p>

<p align="center">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="14%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Effect of investments in new consolidated
        subsidiaries and businesses</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Non-current
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">1,245</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">1,179</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">697</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">567</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Net
        borrowings</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">125</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(683</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Other liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(844</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(768</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1"><i>Net
        effect of investments</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>1,223</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>295</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Transferred from equity investment</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Minority
        interest and reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><i>Purchase price</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>1,219</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>292</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">less: cash
        acquired</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(176</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(9</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash from investments in consolidated
        subsidiaries</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>1,043</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>283</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1"><b>Effect
        of disposal of consolidated subsidiaries and businesses</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Non-current assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">153</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">108</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">381</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Current
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">263</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Net borrowings</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(227</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Other
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(85</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(174</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Exchange differences from translation in the
        period</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1"><i>Net
        effect of disposal</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>105</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>105</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1"><b>288</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Gain (loss) on disposal</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">194</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">233</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">327</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Minority
        interest and reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><i>Selling price</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>293</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>338</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>615</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">less: cash
        conferred</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(23</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"><p
        align="right"><font size="1">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash flow on disposal</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>270</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>338</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="right" valign="bottom" width="13%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>563</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p align="center"><font size="2"><i>(The accompanying notes are
an integral part of these consolidated financial statements)</i></font></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Change in Sh">Table of Contents</a></h5>

<p>&nbsp;</p>

<p align="center"><font size="2"><b>STATEMENTS OF CHANGES IN
SHAREHOLDERS&#146; EQUITY<br>
</b></font><font size="1"><b>(Amounts stated in million euro)</b></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td align="center" valign="bottom" width="10%"
        height="10">&nbsp; </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Share
        capital</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Legal
        <br>
        reserve of Eni SpA</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Reserv
        for treasury shares</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Reserve<br>
        from<br>
        mergers</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Distri-<br>
        butable reserve of Eni SpA</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Former
        <br>
        Agip SpA<br>
        reserves reconsti-<br>
        tuted</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>State
        grants</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Consoli-<br>
        dation reserves</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Reserve
        for shares granted to employees Article 2349 civil code</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Reserve
        Article 13 Law Decree 124/1993 </code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Cumulative
        translation adjustment reserve</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Treasury
        shares</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Retained
        earnings</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Net
        income for the year</code></font></p>
        </td>
        <td align="center" valign="bottom" width="1%" height="10">&nbsp;</td>
        <td align="center" valign="bottom" width="5%" height="10"><p
        align="center"><font size="1" face="Times New Roman"><code>Total</code></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1"><strong>Balance at December
        31, 2001</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>4,001</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>959</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>3,400</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>3,514</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>103</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>62</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>31</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>3</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>1,362</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>(2,068</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>8,365</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>7,751</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1"><strong>27,483</strong></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Dividend distribution (euro 0.75 per Share)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(757</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(2,119</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(2,876</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Allocation of 2001 net income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">5,629</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(5,632</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Increase of reserve for shares granted to
        employees Article 2349 civil code</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Authorization to repurchase
        shares</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">2,000</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,000</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Reserve from mergers</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">1,390</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(1,391</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Shares repurchased</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(770</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(770</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Shares issued under stock grant plan</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Exchange differences due to
        the translation of financial statements prepares in
        currencies other than euro</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,125</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,125</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Other changes</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(48</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(48</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Net income for the year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">4,593</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">4,593</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1"><strong>Balance at December 31, 2002</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>4,002</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>959</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>5,400</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>1,390</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>758</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>103</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>62</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>31</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>4</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>1</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>(763</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>(2,838</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>12,555</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>4,593</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>26,257</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Dividend distribution (euro
        0.75 per Share)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,833</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,833</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Allocation of 2002 net income</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">789</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">971</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(1,760</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Shares repurchased</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(329</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(329</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Reduction in value of stock grant</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Shares issued under stock
        grant plan</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Reclassification</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(1,390</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">1,500</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(110</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Exchange differences arising
        on the translation of foreign currency financial
        statements</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(1,845</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(1,845</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Exchange differences arising on the distribution
        of dividendsand other changes</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">103</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(245</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(142</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Net income for the year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">5,585</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">5,585</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1"><strong>Balance at December 31, 2003</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>4,003</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>959</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>5,397</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>3,050</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>103</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>62</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>31</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>3</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>1</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>(2,505</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>(3,164</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>13,171</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>5,585</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>26,696</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Dividend distribution (euro
        0.75 per Share)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,828</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(2,828</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Allocation of 2003 net income</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">2,735</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(2,757</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Shares repurchased</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Shares issued under stock grant plan</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Cost of stock option</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Former Italgas SpA reserves reconstituted</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(43</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Reserves from mergers of
        EniData SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Reclassification</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">859</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(84</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(775</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Exchange differences arising
        on the translation of foreign currency financial
        statements</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(760</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">(760</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1">Exchange differences arising on the distribution
        of dividends and other changes</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">63</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">(45</font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1">)</font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"
        height="16"><font size="1">Net income for the year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">7,274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%"
        bgcolor="#EEEEEE" height="16"><p align="right"><font
        size="1">7,274</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"
        height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="10%" height="16"><font
        size="1"><strong>Balance at December 31, 2004</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>4,004</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>959</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>5,392</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>4</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>3,896</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>19</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>62</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>31</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>2</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>1</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>(3,202</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>(3,229</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16"><font size="1"><strong>)</strong></font></td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>15,125</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>7,274</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
        <td align="right" valign="bottom" width="4%" height="16"><p
        align="right"><font size="1"><strong>30,338</strong></font></p>
        </td>
        <td valign="bottom" width="1%" height="16">&nbsp;</td>
    </tr>
</table>

<p align="center"><font size="2"><i>(The accompanying notes are
an integral part of these consolidated financial statements)</i></font></p>

<hr noshade>

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Notes">Table of Contents</a></h5>

<p>&nbsp;</p>

<p><font size="4"><b>Notes to the Consolidated Financial
Statements</b></font></p>

<p>&nbsp;</p>

<p><b>1 General</b></p>

<p><font size="2">Eni SpA and its subsidiaries (&quot;Eni&quot;)
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 a 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
&quot;Government&quot;), 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
&quot;Shareholders&#146; equity&quot; for further information
regarding share capital.</font></p>

<p>&nbsp;</p>

<p><b>2 Summary of significant accounting and reporting policies</b></p>

<p><font size="2"><b>Basis of presentation</b></font></p>

<p><font size="2">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 by the Organismo Italiano di Contabilit&#224; 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, &quot;Italian GAAP&quot;). Italian GAAP differs in
certain respects from generally accepted accounting principles in
the United States (&quot;U.S. GAAP&quot;). A description of these
differences and their effects on net income and
shareholders&#146; equity is set forth in Notes 27 and 28, and,
in Note 29, the additional financial statement disclosures
required by U.S. GAAP and the SEC. 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 &quot;SEC&quot;). Reclassifications reflect
essentially a different aggregation of certain items that were
segregated 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, respectively.</font></p>

<p><font size="2"><b>Principles of consolidation</b></font></p>

<p><font size="2">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 to reflect the company&#146;s interest in
the activity, 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 in liquidation, if their exclusion does not result in a
misrepresentation of the company&#146;s financial condition and
consolidated results, and companies purchased exclusively for
sale, are not included in the scope of consolidation. A
subsidiary is considered insignificant when it does not exceed
two of these limits: (i) total assets or liabilities: euro 3,125
thousand; (ii) total revenues euro 6,250 thousand; (iii) average
number of employees: 50 units. Moreover, companies, for which the
consolidation does not produce significant effects, are not
included in the scope of consolidation. Such companies represent
subsidiaries that work for other companies as the operator in the
management of upstream oil contracts and that are proportionally
financed, on the basis of the budgets approved, by the companies
involved in the oil contract, to which the company reports costs
and revenues following the management activity of the oil
contract. Costs and revenues and other operating data
(production, reserves, etc.) of exploration activities are
recognized on a proportional basis in the financial statements of
the companies involved, as well as the obligations for the
exploration activities. The effects of these exclusions are not
material.</font></p>

<p><font size="2">Companies excluded from consolidation are
accounted for under the equity method or cost basis as described
below under the heading Investments.</font></p>

<p><font size="2"><b>Investments</b></font></p>

<p><font size="2">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>

<p><font size="2"><b>Sale of stakes in consolidated subsidiaries</b></font></p>

<p><font size="2">Gains or losses on sale 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 in net equity.</font></p>

<p><font size="2"><b>Intercompany transactions</b></font></p>

<p><font size="2">All intercompany balances and transactions have
been eliminated in consolidation.</font></p>

<p><font size="2"><b>Foreign currency translation</b></font></p>

<p><font size="2">Assets and liabilities of foreign consolidated
companies have been translated at exchange rates prevailing 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.</font></p>

<p><font size="2">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>

<p><font size="2"><b>Accounting principles</b></font></p>

<p><font size="2"><b>Cash and cash equivalents</b></font></p>

<p><font size="2">Eni considers cash and cash equivalents to be
its cash on hand and in deposit with banks and short-term
investments with original maturities of 90 days or less.</font></p>

<p><font size="2"><b>Marketable securities</b></font></p>

<p><font size="2">Marketable securities are stated at the lower
of purchase cost or market value and are usually available for
sale.</font></p>

<p><font size="2"><b>Inventories</b></font></p>

<p><font size="2">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 hydrocarbons (crude oil
and natural gas) and petroleum products, representing 49% and 47%
of Eni&#146;s inventories at December 31, 2003 and 2004,
respectively, is determined by the last-in, first-out (LIFO)
method; the cost of inventories of the Petrochemicals segment,
representing 19% and 21% of Eni&#146;s inventories at December
31, 2003 and 2004, respectively, is determined by the average
cost method.</font></p>

<p><font size="2">Contract work in progress, representing 13% and
12% of inventories at December 31, 2003 and 2004, 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 into euro
using the current exchange rates at year-end and the effects are
recorded in the income statement. Future losses related to
contracts whose future costs exceed future revenues, are accrued
for as soon as the company becomes aware of such losses.</font></p>

<p><font size="2">The remaining inventories are determined,
generally, by the average cost method.</font></p>

<p><font size="2"><b>Fixed assets</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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><font 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>

<p><font size="2">Depreciation rates used are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="70%">
    <tr>
        <td valign="bottom" width="82%"><font size="2">(%)</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="82%"><font size="2">Buildings</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">3</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="82%"><font size="2">Plant and
        machinery:</font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="82%"><font size="2">-
        pipelines, distribution networks and related plant and
        machinery</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">2</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">5</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="82%"><font size="2">- other
        plant and machinery</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">4</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">25</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="82%"><font size="2">Industrial
        and commercial equipment</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">10</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="2">25</font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font 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.</font></p>

<p><font size="2">When the circumstances causing impairment cease
to exist, Eni reverses previously recorded impairment charges net
of depreciation.</font></p>

<p><font size="2">Renewals and improvements which extend asset
lives are capitalized; maintenance and ordinary repairs are
expensed as incurred.</font></p>

<p><font size="2"><b>Intangible assets</b></font></p>

<p><font size="2">Intangible assets are stated at cost, including
interest on debt incurred in connection with specific projects as
indicated previously for fixed assets.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Other intangible assets, except for those
related to exploration and production activities, are amortized
using the straight-line method 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>

<p style="page-break-before:always"><font size="2"><b>Exploration
and production activities</b></font></p>

<p><font size="2"><i>Acquisition of mineral rights</i></font></p>

<p><font size="2">Costs associated with the acquisition of
mineral rights, including reserves purchased in connection with
such acquisitions, 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 other mineral rights are not amortized until
classified as proved reserves. Capitalized costs related to
abandoned drilling programs are expensed.</font></p>

<p><font size="2"><i>Exploration</i></font></p>

<p><font size="2">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>

<p><font size="2"><i>Development</i></font></p>

<p><font size="2">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
development wells are expensed immediately as loss on disposal.</font></p>

<p><font size="2">Writedowns and revaluations of development
costs are made on the same basis as those for fixed assets.</font></p>

<p><font size="2"><i>Production</i></font></p>

<p><font size="2">Production costs are costs to operate and
maintain wells and field equipment and are expensed as incurred.</font></p>

<p><font size="2"><i>Abandonment</i></font></p>

<p><font size="2">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>

<p><font size="2"><b>Reserve for employee termination indemnities
and other employee benefits</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Expenses relating to Eni&#146;s pension
obligations of subsidiaries operating outside Italy are settled
in relation to the period of employment in accordance with local
laws and work contracts.</font></p>

<p><font size="2"><b>Treasury shares</b></font></p>

<p><font size="2">Treasury shares 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.</font></p>

<p><font size="2"><b>Recognition of revenues and costs</b></font></p>

<p><font size="2">Revenues from sales of products and services
are recognized upon transfer of title or completion of service.
In particular, revenues are recognized:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">for petroleum
        products sold to retail distribution networks, generally
        upon delivery to the service stations; for all the other
        sales, generally, upon shipment;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">for natural
        gas when the natural gas leaves Eni&#146;s distribution
        network and is delivered to the customer;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">for crude
        oil, generally upon shipment;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">for chemicals
        and all other sales, generally upon shipment.</font></td>
    </tr>
</table>

<p><font size="2">In all instances where revenue is recognized
upon shipment, all risk of loss is transferred to the buyer upon
shipment.</font></p>

<p><font 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 volumes and
actual production volumes are not significant.</font></p>

<p style="page-break-before:always"><font size="2">Revenues
related to long-term construction contracts are recognized using
the percentage-of-completion method measured on the cost-to-cost
basis. Long-term construction contracts denominated in currencies
other than euro are translated into the euro using the exchange
rate of the day the percentage of completion are evaluated with
the purchaser or using the exchange rate of the day advances are
paid; long-term construction contracts not yet accepted by the
purchaser are translated using the year-end exchange rate; the
same criteria is used for the corresponding hedging derivatives.
Provisions for anticipated losses on long-term contracts are
recorded in full when such losses become evident. 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 revenues and
the amount of the claim can be reasonably estimated.</font></p>

<p><font 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>

<p><font size="2">Eni is a 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 Eni&#146;s share of oil and gas production. The company
records such income taxes owed by Eni but paid on its behalf in
revenues and income tax expense.</font></p>

<p><font size="2">Starting in 2003, stock grant and stock options
granted to Group managers were recognized as compensation
expense, as these amounts represent a part of employee
compensation. The cost of stock-based compensation is measured by
the fair value of the award at the grant date and recognized 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 over the vesting period. The fair
value of stock grants is represented by the market value of the
share at the grant date, less the present value of dividends
expected in the vesting period. The fair value of stock options
is represented by the value of the option determined with the
Black-Scholes model, which takes into account the conditions for
the exercise of the options, the present value of shares, the
expected volatility and the risk-free interest rate.The cost of
stock grants with the use of treasury shares and the related
social security contributions and termination indemnity are
recognized as a contra-entry to the item &quot;Reserve for risks
and contingencies - Other&quot; and the cost of stock options is
recognized as a contra-entry to the item &quot;Disposable
reserves&quot;.</font></p>

<p><font size="2">Revenues and costs expressed in currencies
other than euro are translated at the exchange rate prevailing on
the day of the transaction.</font></p>

<p><font size="2"><b>Accounting for Buy/Sell Contracts</b></font></p>

<p><font size="2">In January and February 2005, the Securities
and Exchange Commission (&quot;SEC&quot;)&nbsp;issued comment
letters to Eni and other companies in the oil and gas industry
requesting disclosure of information related to the accounting
for buy/sell contracts. Eni routinely enters buy/sell contracts,
principally in the downstream business in Italy, associated
mainly with refined products. For refined products, buy/sell
arrangements are used to support the company&#146;s refined
products marketing activity, which includes the production,
purchase and sale of refined products in order to fulfill the
company&#146;s marketing needs and supply agreements to customer
locations and specifications.</font></p>

<p><font size="2">Eni accounts for buy/sell transactions in the
consolidated income statement on a net basis, regardless whether
terms of the buy/sell agreements were established jointly, in a
single contract, or separately, in individual contracts that are
entered into concurrently or in contemplation of one another with
a single counterparty. This accounting is consistent with the
most recent guidance of the SEC staff who considers that the
accounting for buy/sell contracts should be shown net on the
income statement.</font></p>

<p><font size="2">The topic is under deliberation by the Emerging
Issues Task Force (EITF) of the FASB as Issue No. 04-13,
&quot;Accounting for Purchases and Sales of Inventory with the
Same Counterparty.&quot; The EITF first discussed this issue in
November&nbsp;2004. Additional research is being performed by the
FASB staff, and the topic will be discussed again at a future
EITF meeting. While this issue is under deliberation, the SEC
staff directed Eni and other oil companies in its February 2005
comment letter to disclose on the face of the income statement
the amounts associated with buy/sell contracts and to discuss in
a footnote to the financial statements the basis for the
underlying accounting.</font></p>

<p><font size="2">In Eni&#146;s consolidated income statement,
&quot;Net sales from operations&quot; and &quot;Purchases,
services and other&quot; for the three years ending
December&nbsp;31, 2004, were netted of euro 1,763&nbsp;million,
euro 1,490&nbsp;million and euro 1,511 million, respectively, for
the above described buy/sell contracts.</font></p>

<hr size="1" align="left" noshade width="18%">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">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></td>
    </tr>
</table>

<p align="left" style="page-break-before:always">&nbsp;</p>

<p><font size="2"><b>Income taxes</b></font></p>

<p><font size="2">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 &quot;Non-current income tax liabilities&quot;
account, while deferred tax assets are recorded in
&quot;Other&quot; (non-current assets). Deferred tax assets are
offset against deferred tax liabilities if they relate to the
same tax paying entity.</font></p>

<p><font size="2"><b>Derivatives</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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, with
the exclusion of non-current securities, are recorded in
&quot;Accrued interest and other current assets&quot; or
&quot;Accrued expenses and other&quot; (current liabilities) as
applicable until recognized in the income statement as
&quot;Financial expense and exchange differences net&quot;. Gains
on exchange on hedge derivatives of non-current securities are
recorded in income to compensate losses on exchange relating to
the hedged activities.</font></p>

<p><font size="2">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. 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 &quot;Marketable
securities&quot; or &quot;Other assets&quot;, depending on the
maturity of the contract.</font></p>

<p><font size="2">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>

<p><font size="2"><b>Environmental expenditures</b></font></p>

<p><font size="2">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>

<p><font size="2"><b>Restructuring costs</b></font></p>

<p><font size="2">The costs of redundancy incentives are accrued
when a workforce reduction program is defined and the conditions
required 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>

<p><font size="2"><b>Research and development costs</b></font></p>

<p><font size="2">Research and development costs are generally
expensed as incurred.</font></p>

<p><font size="2">For the years ended December 31, 2002, 2003 and
2004, total research and development costs were euro 175 million,
euro 238 million and euro 257 million, respectively, and euro 11
million, euro 52 million and euro 47 million as capitalized
costs.</font></p>

<p><font size="2"><b>Statements of cash flows</b></font></p>

<p><font size="2">The cash flow statements are prepared in
accordance with International Accounting Standards, using the
indirect method.</font></p>

<p><font size="2">Unless otherwise indicated, all monetary
amounts in the financial statements and in these notes are
presented in millions of euro, except share, per share, ADS and
per ADS data.</font></p>

<p>&nbsp;</p>

<p><b>3 Marketable securities</b></p>

<p><font size="2">Marketable securities consist of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="64%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>Net value at<br>
        Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>Net value at<br>
        Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">Investments</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Other
        securities:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">- Italian treasury bonds</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">963</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">982</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">- other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1">301</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1">288</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,264</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,270</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>1,277</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>1,292</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#FFFFFF"><hr
        size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Investments of euro 22 million concern the
shares of Saipem SpA which were purchased for stock option and
stock grant plans.</font></p>

<p><font size="2">On December 31, 2004, the due dates of other
securities of euro 1,270 million were the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="64%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>Net value at<br>
        Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>Net value at<br>
        Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">within 12 months</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">119</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">119</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">within 5
        years</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1">942</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1">965</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">beyond 5 years</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">203</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="15%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">186</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>1,264</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="right"><font
        size="1"><b>1,270</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="64%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Securities for euro 474 million are considered
coverage of technical reserves of Padana Assicurazioni SpA (euro
483 million at December 31, 2003).</font></p>

<p>&nbsp;</p>

<p><b>4 Receivables</b></p>

<p><font size="2">Receivables by type and due date consist of the
following:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="41%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="29%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="29%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Current</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Non-current</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Total</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Current</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Non-current</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%" bgcolor="#EEEEEE"><font
        size="1">Trade:</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="41%"><font size="1">-
        customers</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">9,243</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">233</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">9,476</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">10,369</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">160</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">10,529</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%" bgcolor="#EEEEEE"><font
        size="1">- other</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">256</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">256</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>9,539</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>233</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>9,772</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>10,625</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>160</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>10,785</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%" bgcolor="#EEEEEE"><font
        size="1">Financing</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">551</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,098</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,649</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">525</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">893</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,418</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%"><font size="1">Other</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,787</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">989</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,776</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,054</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">946</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12,877</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,320</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>15,197</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>14,204</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,999</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>16,203</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="41%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">&quot;Trade&quot; receivables of euro 10,785
million increased by euro 1,013 million. This increase relates
primarily to the Gas &amp; Power (euro 274 million),
Petrochemicals (euro 250 million) and Exploration &amp;
Production segments (euro 214 million).</font></p>

<p><font size="2">&quot;Financing&quot; receivables of euro 1,418
million include loans made for operating purposes for euro 1,178
million (euro 1,409 million at December 31, 2003). The euro 231
million decrease in loans made for operating purposes is
primarily due to the collection of the loans made on behalf of
Trans Austria Gasleitung GmbH (euro 65 million),
Transmediterranean Pipeline Co Ltd (euro 57 million) and to
exchange rate differences of euro 78 million due to the
translation of financial statements prepared in currencies other
than euro.</font></p>

<p><font size="2">Repayment of such receivables of euro 42
million (euro 32 million at December 31, 2003) is contingent upon
the outcome of financed activities, while a portion of the loans
may be converted into capital.</font></p>

<p><font size="2">&quot;Other&quot; receivables consist of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Accounts receivable from:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Italian
        tax authorities related to:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;</font><font size="1">. income tax
        credits</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,024</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">580</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">&nbsp;&nbsp;</font><font
        size="1">. value added tax (VAT)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">149</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">396</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="2">&nbsp;&nbsp;</font><font size="1">. interest on
        tax credits</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">337</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">322</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="2">&nbsp;&nbsp;</font><font
        size="1">. other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">97</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">62</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- joint venture operators in exploration and
        production</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">532</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">546</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        insurance companies</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">278</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">349</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- foreign tax authorities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">232</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">261</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Italian
        governmental entities</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">198</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">216</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- receivables from affiliates and unconsolidated
        subsidiaries</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">77</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">69</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Prepayments
        for services</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">150</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">215</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Receivables relating to factoring activities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">171</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Other
        receivables</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">702</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">813</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,776</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,000</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Receivables relating to factoring activities
for euro 171 million concern Serfactoring SpA which has been
included in the scope of consolidation from January 1, 2004.</font></p>

<p><font size="2">The interest rate applicable to tax credits
from Italian tax authorities was 1.375% for each six month period
from July 1, 2003 (2.5% in the first half of 2003).</font></p>

<p><font size="2">Approximately 43.8% of Eni&#146;s non-current
receivables at December 31, 2004 were denominated in currencies
other than the euro (56.5% at December 31, 2003).</font></p>

<p><font size="2">Eni did not have any significant concentration
of credit risk as of December 31, 2003 and 2004.</font></p>

<p><font size="2">The above amounts are net of the allowance for
doubtful accounts, which amounts to euro 778 million, 730 million
and 875 million at December 31, 2004, 2003 and 2002,
respectively. The evolution of the allowance in the past three
years is as follows:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Balance<br>
        at the beginning<br>
        of the year</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Additions</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Deductions</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Other<br>
        changes</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Year-end<br>
        amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">December 31, 2002</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,277</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">111</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(106</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(407</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">875</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%"><font size="1">December
        31, 2003</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">875</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">129</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(44</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(230</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">730</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">December 31, 2004</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">730</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">778</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><b>5 Inventories</b></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="21%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Crude oil, gas and petroleum products</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Chemical products</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Work in progress long-term contracts</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Other</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Crude oil, gas and petroleum products</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Chemical products</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Work in progress long-term contracts</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Other</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%" bgcolor="#EEEEEE"><font
        size="1">Raw and auxiliary materials and consumables</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">361</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">205</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">466</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,032</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">377</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">199</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">525</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,101</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%"><font size="1">Products
        being processed and semi finished products</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">87</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">72</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%" bgcolor="#EEEEEE"><font
        size="1">Work in progress long-term contracts</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">433</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">433</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">404</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">404</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%"><font size="1">Finished
        products and goods</font></td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,170</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">416</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">41</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,627</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,130</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">482</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,659</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%" bgcolor="#EEEEEE"><font
        size="1">Advances</font></td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">106</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">114</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">84</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">84</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,604</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>636</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>434</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>619</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,293</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,558</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>700</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>404</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>658</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,320</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Oil and petroleum products inventories of euro
623 million represent certain minimum quantities
(&quot;compulsory stock&quot;) required by law (euro 682 million
at December 31, 2003) and natural gas inventories of euro 39
million represent strategic stock (the same amount at December
31, 2003), while natural gas inventories valued at euro 348
million are used to satisfy peak demand (euro 465 million at
December 31, 2003).</font></p>

<p><font size="2">The excess of market value over the book value
of crude oil, petroleum products and purchased natural gas at
year-end was euro 1,014 million (euro 912 million at December 31,
2003).</font></p>

<p><font size="2">The above amounts are net of the valuation
allowance amounting to euro 99 million, 107 million and 108
million at December 31, 2004, 2003 and 2002, respectively. The
evolution of this allowance in the past three years is as
follows:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Balance<br>
        at the beginning <br>
        of the year</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Additions</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Deductions</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Other<br>
        changes</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Year-end<br>
        amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">December 31, 2002</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">159</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(38</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">108</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%"><font size="1">December
        31, 2003</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">25</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(9</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">107</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">December 31, 2004</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">99</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><b>6 Fixed assets</b></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="19%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Net value at Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Investments</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Depreciation</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Writedown</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Change<br>
        in scope of consolidation</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Exchange rate differences</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Other changes</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Net value at Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Reserve amortization writedown<br>
        at Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="1">Buildings</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,795</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(26</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,747</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,740</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="1">Plant and
        machinery</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">25,217</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,865</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(3,197</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(119</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(107</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(792</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">4,112</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">27,979</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">37,051</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="1">Industrial and commercial equipment</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">522</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">149</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(122</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">420</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,206</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%"><font size="1">Other
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">291</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(102</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">322</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">797</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%" bgcolor="#EEEEEE"><font
        size="1">Fixed assets in progress and advances</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,535</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,613</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(178</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(302</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,481</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7,148</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">558</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>36,360</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>6,771</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>(3,525</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>(311</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>(209</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>(1,099</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>(371</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>37,616</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>41,352</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="19%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Capital expenditure of euro 6,771 million (euro
7,843 million in 2003) primarily relate to the Exploration &amp;
Production segment (euro 4,398 million), Gas &amp; Power segment
(euro 1,344 million), Refining &amp; Marketing segment (euro 654
million) and Oilfield Services, Construction and Engineering
segment (euro 186 million, of which euro 176 million related to
the construction and drilling activity). Additional information
on capital expenditure is included in the &quot;Operating
Review&quot; of the &quot;Report of the Directors&quot;.</font></p>

<p><font size="2">Writedowns of euro 311 million concern
primarily the Exploration &amp; Production segment (euro 266
million), the Refining &amp; Marketing segment (euro 20 million)
and Syndial SpA (euro 18 million).</font></p>

<p><font size="2">The changes in scope of consolidation of euro
209 million concern, primarily, the sale of LukAgip NV (euro 95
million), Agip do Brasil SA (euro 71 million), Stargas Italia SpA
(euro 33 million) and Eni Nederland BV (euro 22 million). This
decrease is partially offset by the inclusion in the scope of
consolidation of Marghera Servizi Industriali Srl (euro 15
million).</font></p>

<p><font size="2">Exchange rate differences due to the
translation of financial statements prepared in currencies other
than euro amount to euro 1,099 million related to companies whose
functional currency is the US dollar (euro 1,173 million).</font></p>

<p><font size="2">Other changes for euro 371 million related
primarily to the sale and elimination of businesses and assets
(euro 457 million) mainly in the Exploration &amp; Production
segment (euro 301 million).</font></p>

<p><font size="2">Monetary revaluations included in the gross and
net value of fixed assets, amount to euro 1,067 and 76 million,
respectively (euro 1,084 million and euro 82 million respectively
at December 31, 2003).</font></p>

<p><font size="2">At December 31, 2004 fixed assets have been
pledged for euro 482 million primarily as collateral on debt
incurred by Eni (euro 486 million at December 31, 2003).</font></p>

<h5 align="left" style="page-break-before:always"><font size="2"><b>Fixed
assets by segment</b></font></h5>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Fixed assets, gross:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        Exploration &amp; Production</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">38,811</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">39,479</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Gas &amp; Power</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18,926</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20,038</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8,652</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">9,002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Petrochemicals</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,266</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,252</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,531</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,644</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Other activities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,403</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,359</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        Corporate and financial companies</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">149</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">194</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>76,738</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>78,968</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Accumulated
        depreciation, amortization and writedowns:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18,473</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18,899</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">9,426</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">9,593</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,482</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,700</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        Petrochemicals</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,085</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,098</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,790</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,912</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Other
        activities</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2,065</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2,064</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Corporate and financial companies</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">57</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">86</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>40,378</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>41,352</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Fixed assets, net:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        Exploration &amp; Production</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">20,338</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">20,580</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Gas &amp; Power</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9,500</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10,445</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,170</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,302</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Petrochemicals</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,181</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,154</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,741</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,732</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- Other activities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">338</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">295</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        Corporate and financial companies</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">92</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">108</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>36,360</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>37,616</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>7 Investments</b></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="12%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Net value at Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Acquisitions and subscriptions</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Increase in value</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Reduction in value</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Exchange rate differences</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Other changes</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Net value at Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Accumulated<br>
        impairment charges<br>
        at Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><font
        size="1">Investments in unconsolidated subsidiaries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">285</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">231</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">273</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="12%"><font size="1">Investments
        in affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,562</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">240</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">173</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(184</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(27</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,712</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">815</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><font
        size="1">Investments in other companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">313</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">339</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>3,160</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>316</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>200</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>(226</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>(78</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>(90</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>3,282</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,148</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Acquisitions and subscriptions for euro 316
million concerned mainly the subscriptions of capital increase of
Darwin LNG Pty Ltd (euro 58 million), of EnBW - Eni
Verwaltungsgesellschaft mbH (euro 53 million), of Albacom SpA
(euro 41 million) Raffineria di Milazzo ScpA (euro 35 million),
and the acquisition of Acam Gas SpA by Italgas SpA (euro 44
million, of which euro 9 million related to the subscriptions of
capital increase).</font></p>

<p><font size="2">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 method. Specifically,
the increase of euro 200 million relates primarily to Trans
Austria Gasleitung GmbH (euro 32 million), Transmediterranean
Pipeline Co Ltd (euro 19 million) and Azienda Energia e Servizi
Torino SpA (euro 19 million); reductions for euro 226 million
concern primarily the decrease in the carrying value of companies
accounted for under the equity method for the receipt of
dividends (euro 153 million, of which euro 31 million relate to
Galp Energia SGPS SA, euro 29 million to Trans Austria Gasleitung
GmbH and euro 24 million to Transmediterranean Pipeline Co Ltd)
and reductions of investments (euro 73 million, of which 41
million relate to Albacom SpA).</font></p>

<p><font size="2">Other changes for euro 90 million relate
primarily to the inclusion in the scope of consolidation of Eni
Gas &amp; Power CH SA (euro 19 million), Marghera Servizi
Industriali Srl (euro 12 million) and Serfactoring SpA (euro 10
million) and to the sale of investments (euro 32 million).</font></p>

<p align="left" style="page-break-before:always"><font size="2">The
net value of euro 3,282 million (euro 3,160 million at December
31, 2003) consists of the following companies:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="33%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="32%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="32%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%">&nbsp;</td>
        <td valign="bottom" width="32%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="32%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="33%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Net value</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Eni&#146;s interest</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Accounting method</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Net value</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Eni&#146;s interest</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Accounting method</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">Unconsolidated subsidiaries:</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">-
        Transmediterranean Pipeline Co Ltd</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">57</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Eni BTC Ltd</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">100.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">48</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">100.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">168</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">126</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>285</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>231</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">Affiliates:</font></td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Galp Energia SGPS SA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">602</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33.34</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">568</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33.34</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Uni&#243;n
        Fenosa Gas SA</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">416</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">408</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Azienda Energia e Servizi Torino SpA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">168</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">171</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">-
        Raffineria di Milazzo ScpA</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">131</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">168</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Eteria Parohis Aeriou Thessaloniki SA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">151</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">151</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- EnBW -
        Eni Verwaltungsgesellschaft mbH</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">94</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">148</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Blue Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">125</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">116</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Erg
        Raffinerie Mediterranee Srl <sup>(a)</sup></font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">100</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">28.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">cost</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">100</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">28.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">cost</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- United Gas Derivatives Co</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">82</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33.33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">97</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33.33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">-
        Superoctanos CA</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">80</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">82</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Fertilizantes Nitrogenados de Oriente CEC</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">75</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Trans
        Austria Gasleitung GmbH <sup>(b)</sup></font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">58</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">89.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">60</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">89.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Supermetanol CA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">34.51</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">34.51</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Toscana
        Gas SpA</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">49</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">46.07</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">56</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">46.10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Siciliana Gas SpA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Acam Gas
        SpA</font></td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">44</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Eteria Parohis Aeriou Thessalia SA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">41</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Haldor
        Tops&#248;e A/S</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">50.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Distribuidora de Gas del Centro SA</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31.35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31.35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">-
        Transitgas AG</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">45.99</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">46.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Termica Milazzo Srl</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">40,00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">40,00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">equity method</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Other</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">167</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">182</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,562</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,712</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">Other
        companies:</font></td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Darwin LNG Pty Ltd</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12.04</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">cost</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">89</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12.04</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">cost</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Nigeria
        LNG Ltd</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">10.40</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">cost</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">86</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">10.40</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">cost</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Ceska Rafinerska AS</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16.33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">cost</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16.33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">cost</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">-
        Interconnector (UK) Ltd</font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">25</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">5.00</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">cost</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">23</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">4.62</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">cost</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE"><font
        size="1">- Discovery Producer Services Llc</font></td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">28</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16.67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">cost</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16.67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">cost</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="33%"><font size="1">- Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">96</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>313</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>339</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>3,160</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>3,282</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="33%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 25 million.<br>
(a) To the company was granted a call option for the purchase
with a fixed contract price (see Note 23 &quot;Other
commitments&quot;).<br>
(b) The company is a joint venture.</font></p>

<p><font size="2">The net value of investments in unconsolidated
subsidiaries and affiliates includes the differences between
purchase price and Eni&#146;s share of net assets of euro 474
million. Such differences relate primarily to Uni&#243;n Fenosa Gas
SA (euro 185 million), EnBW - Eni Verwaltungsgesellschaft mbH
(euro 180 million) and Azienda Energia e Servizi Torino SpA (euro
72 million).</font></p>

<p><font size="2">The following are the amounts, according to
Eni&#146;s interest, from the last available financial statements
of unconsolidated subsidiaries and affiliates:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="48%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="48%" height="21">&nbsp;</td>
        <td valign="bottom" width="1%" height="21">&nbsp;</td>
        <td valign="bottom" width="12%" height="21"><p
        align="center"><font size="1"><b>Unconsolidated
        subsidiaries</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="21">&nbsp;</td>
        <td valign="bottom" width="12%" height="21"><p
        align="center"><font size="1"><b>Affiliates</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="21">&nbsp;</td>
        <td valign="bottom" width="12%" height="21"><p
        align="center"><font size="1"><b>Unconsolidated
        subsidiaries</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="21">&nbsp;</td>
        <td valign="bottom" width="12%" height="21"><p
        align="center"><font size="1"><b>Affiliates</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="1">Total assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,340</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,232</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,502</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,637</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="1">Total
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,132</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">5,735</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,331</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">5,958</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="1">Net sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">140</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,658</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">110</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,476</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%"><font size="1">Operating
        income</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">278</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">330</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="48%" bgcolor="#EEEEEE"><font
        size="1">Net income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">123</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">150</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="48%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p align="left" style="page-break-before:always"><font size="2">The
reserve for losses related to investments, included in the
reserve for contingencies (Note 12) concerns the following
companies:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Industria Siciliana Acido Fosforico - ISAF SpA
        (in liquidation)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Consorzio
        Set Sviluppo Elettrico Trecate</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">15</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">18</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Caspian Pipeline Consortium R - Closed Joint
        Stock Company</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Lasmo
        Petroleum Development BV</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">10</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Other companies</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">44</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>121</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>91</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>8 Intangible assets</b></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%" height="53"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="10%" height="53"><p
        align="center"><font size="1"><b>Net value <br>
        at Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="53">&nbsp;</td>
        <td valign="bottom" width="10%" height="53"><p
        align="center"><font size="1"><b>Investments</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="53">&nbsp;</td>
        <td valign="bottom" width="10%" height="53"><p
        align="center"><font size="1"><b>Amortization</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="53">&nbsp;</td>
        <td valign="bottom" width="10%" height="53"><p
        align="center"><font size="1"><b>Other changes</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="53">&nbsp;</td>
        <td valign="bottom" width="10%" height="53"><p
        align="center"><font size="1"><b>Net value<br>
        at Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="53">&nbsp;</td>
        <td valign="bottom" width="10%" height="53"><p
        align="center"><font size="1"><b>Reserve amortization
        writedown<br>
        at Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">Organizational and financing costs</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%"><font size="1">Costs for
        research and development</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">167</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">550</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(608</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">106</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">740</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">Industrial patent right and intellectual
        property rights</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">162</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(139</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">174</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">808</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%"><font size="1">Concessions,
        licenses, trademarks and similar items</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">934</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(108</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(12</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">824</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,346</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">Goodwill</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,982</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(135</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(45</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,815</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">416</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%"><font size="1">Intangible
        assets in progress and advances</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">133</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">75</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(148</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">60</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%" bgcolor="#EEEEEE"><font
        size="1">Other intangible assets</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">212</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">201</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">335</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>3,610</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>732</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>(1,043</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>(109</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>3,190</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>3,713</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="35%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Organizational and financing costs of euro 10
million concern costs for extraordinary corporate operations,
costs for setting up or expanding production activities and costs
for share capital increases.</font></p>

<p><font size="2">Costs for research and development of euro 106
million concern mainly the purchase of mineral rights (euro 96
million). This item also includes exploration expenditures
amortized in the year for euro 491 million (euro 632 million in
2003).</font></p>

<p><font size="2">Concessions, licenses, trademarks and similar
items for euro 824 million concern primarily the transmission
rights for natural gas imported from Algeria (euro 664 million)
and concessions for mineral exploration (euro 76 million).</font></p>

<p><font size="2">Goodwill of euro 1,815 million concerns
primarily the Gas &amp; Power segment (euro 788 million, of which
euro 770 million relates to the Public Offering for Italgas SpA
shares), the Oilfield Services, Construction and Engineering
segment (euro 785 million, of which euro 754 million relates to
the purchase of Bouygues Offshore SA, now Saipem SA), the
Exploration &amp; Production segment (euro 195 million relates to
the purchase of Lasmo Plc, now Eni Lasmo Plc), the Refining &amp;
Marketing segment (euro 46 million). Other changes of euro 45
million relate primarily to the change in the scope of
consolidation following the sale of Agip do Brasil SA (euro 51
million).</font></p>

<p><font size="2">Other intangible assets of euro 201 million
concern primarily royalties for the use of licenses by Polimeri
Europa SpA (euro 90 million) and investments in assets of third
parties (euro 16 million).</font></p>

<p><font size="2">Changes in goodwill for the years indicated by
segment are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="33%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Initial balance</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Capital Expenditure</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Depreciation Amort. charges</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Change in Consolidation</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Exchange difference conversion</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Other changes</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Final balance</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Reserve for amort. depreciation</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE"><font
        size="1"><b>Dec. 31, 2003</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%"><font size="1">Exploration
        &amp; Production</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>250</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="1">(18</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">(19</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>213</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">54</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE"><font
        size="1">Gas &amp; Power</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>77</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(45</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">798</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>832</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">49</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%"><font size="1">Refining
        &amp; Marketing</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>93</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">26</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="1">(21</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">10</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>109</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">124</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE"><font
        size="1">Oilfield Services Construction and Engineering</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>880</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(55</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(7</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>825</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">97</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%"><font size="1">Other
        segments</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>7</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="1">(2</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">(2</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>3</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">9</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,307</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>28</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(141</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(29</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>813</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,982</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>333</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%"><font size="1"><b>Dec. 31,
        2004</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE"><font
        size="1">Exploration &amp; Production</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>213</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(19</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">195</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">71</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%"><font size="1">Gas &amp;
        Power</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>832</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="1">(45</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">(4</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">788</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">94</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE"><font
        size="1">Refining &amp; Marketing</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>109</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(16</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(51</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">46</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">90</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%"><font size="1">Oilfield
        Services Construction and Engineering</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>825</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">12</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="1">(53</font></p>
        </td>
        <td valign="top" width="1%"><font size="1">)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">785</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1">150</font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%" bgcolor="#EEEEEE"><font
        size="1">Other segments</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3</b></font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="top" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="33%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>1,982</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>13</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="7%"><p align="right"><font
        size="1"><b>(135</b></font></p>
        </td>
        <td valign="top" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="8%"><p align="right"><font
        size="1"><b>(51</b></font></p>
        </td>
        <td valign="top" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>7</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>(1</b></font></p>
        </td>
        <td valign="top" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>1,815</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="6%"><p align="right"><font
        size="1"><b>416</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td width="33%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="8%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="9%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
        <td width="1%">&nbsp;</td>
        <td width="7%"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><b>9 Other non-current assets</b></p>

<p><font size="2">Other non-current assets consist of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Securities held as long-term assets:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- Italian
        treasury bonds</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">22</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">22</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- other securities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">93</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">117</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Deferred tax assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,167</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,203</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2,283</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2,343</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">Securities held as long-term assets are carried
at cost, adjusted for permanent impairment, and represent
security deposits from customers of euro 22 million (euro 21
million at December 31, 2003).</font></p>

<p><font size="2">Deferred tax assets are described in Note 12
&quot;Reserves for contingencies and deferred and other
non-current tax liabilities&quot;.</font></p>

<p>&nbsp;</p>

<p><b>10 Taxes payable</b></p>

<p><font size="2">Taxes payable include the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="top" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%" bgcolor="#EEEEEE"><font
        size="1">Customs and excise duties</font></td>
        <td valign="top" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">273</font></p>
        </td>
        <td valign="top" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">793</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%"><font size="1">Income taxes
        payable</font></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><p align="right"><font
        size="1">1,262</font></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><p align="right"><font
        size="1">1,213</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%" bgcolor="#EEEEEE"><font
        size="1">Other</font></td>
        <td valign="top" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">648</font></p>
        </td>
        <td valign="top" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="top" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">508</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><p align="right"><font
        size="1"><b>2,183</b></font></p>
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><p align="right"><font
        size="1"><b>2,514</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Taxes payable of euro 2,514 million increased
by euro 331 following the increase in customs and excise tax
duties (euro 520 million) due to circumstance that in 2004 the
fiscal measure providing the anticipated payment in December of
the excise tax on petroleum products sold during the second half
of December has not been renewed. Such increase has been
partially offset by the decrease in income taxes payable and
other taxes payable (euro 189 million).</font></p>

<p>&nbsp;</p>

<p><b>11 Debt</b></p>

<p><font size="2"><b>Short-term debt</b></font></p>

<p><font size="2">Eni&#146;s short-term debt is composed of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Due to:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- banks</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,633</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2,196</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- other financing institutions</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">151</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">233</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        commercial paper</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,510</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,540</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- unconsolidated subsidiaries</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">65</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">54</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        affiliates</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">69</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">92</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7,428</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,115</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Short-term debt by currency is as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Euro</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,628</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,389</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">US dollar</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,218</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,302</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">British pound</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">84</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">253</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Norwegian
        kroner</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">278</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">21</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Other</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">220</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">150</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>7,428</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>4,115</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">The average interest rate of Eni&#146;s
short-term debt was 2.13% and 2.49% for the years ended December
31, 2003 and 2004, respectively.</font></p>

<p><font size="2">Short-term debt of euro 4,115 million decreased
by euro 3,313 million. Such decrease was primarily due to the
balance of payments and new liabilities (euro 3,622 million) and
to the exchange rate differences related to the translation of
financial statement prepared in currencies other than euro (euro
22 million). This decrease was partially offset by the inclusion
in the scope of consolidation of Serfactoring SpA (euro 332
million).</font></p>

<p><font size="2">On December 31, 2004 Eni maintained committed
and uncommitted unused lines of credit with various domestic and
foreign banks for euro 5,304 and 7,771 million, respectively
(euro 4,647 million and euro 4,799 million, respectively, at
December 31, 2003). These agreements provide for interest charges
based on prevailing market conditions. Commission fees on unused
lines of credit are not significant.</font></p>

<p>&nbsp;</p>

<p><font size="2"><b>Long-term debt</b></font></p>

<p><font size="2">Eni&#146;s long-term debt, including current
maturities, as of December 31, 2003 and 2004, and the related
maturity schedules are as follows:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="26%" height="32"><font
        size="1">(million euro)</font></td>
        <td valign="bottom" width="11%" height="32">&nbsp;</td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="13%" height="32"><p
        align="center"><font size="1"><b>Dec. 31</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="6%" height="32"><p
        align="center"><font size="1"><b>Current maturity</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="41%" height="32"><p
        align="center"><font size="1"><b>Long-term maturity</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="26%"><font size="1"><b>Type of
        debt instrument</b></font></td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>Maturity range</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2005</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2006</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2007</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2008</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>2009</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>After</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Due to banks:</font></td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%"><font size="1">- ordinary
        loans</font></td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>2005-2017</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">2,722</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">2,167</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">151</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">473</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">380</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">152</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">348</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">663</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">2,016</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">- interest rate assisted loans</font></td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="center"><font size="1"><b>2005-2013</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">137</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">101</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">74</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%"><font size="1">- other
        financings</font></td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>2005-2007</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">359</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">286</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">225</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">284</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,218</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,554</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>227</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>546</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>609</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>155</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>350</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>667</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,327</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%"><font size="1">Notes of
        credit</font></td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Ordinary bonds</font></td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="center"><font size="1"><b>2005-2027</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,793</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,331</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">660</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">860</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">406</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">125</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">496</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,784</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,671</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%"><font size="1">Other
        financing institutions</font></td>
        <td valign="bottom" width="11%"><p align="center"><font
        size="1"><b>2005-2019</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">782</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">725</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">49</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">89</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">107</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">34</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">120</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">326</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">676</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,826</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,610</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>936</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,495</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,122</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>314</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>966</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,777</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7,674</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="26%">&nbsp;</td>
        <td valign="bottom" width="11%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="6%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Long-term debt of euro 8,610 million decreased
by euro 216 million. Such decrease was primarily due to the
effect of exchange rate differences on the translation of
financial statements prepared in currency other than euro (euro
210 million) and to the effect of exchange rate differences on
the alignment to the year-end exchange rate of debts in
currencies other than functional currencies (euro 57 million).
The increase was partially offset by the balance of payments and
liabilities (euro 22 million).</font></p>

<p><font size="2">Eni entered into financing arrangements with
the European Investment Bank, relating to bank debt that requires
maintenance of certain financial ratios generally based on
Eni&#146;s consolidated financial statements or of a rating not
inferior to A - (S&amp;P) and A3 (Moodys). At December 31, 2003
and 2004, the amount of short and long-term debt subject to
restrictive covenants was euro 865 million and euro 1,104
million, respectively (of which, euro 300 million relating to
rating). Furthermore, Saipem SpA entered into financing
arrangements with banks for euro 300 million, that require
maintenance of certain financial ratios generally based on
Saipem&#146;s consolidated financial statements. Eni and Saipem
are in compliance with the covenants contained in these financing
arrangements.</font></p>

<p style="page-break-before:always"><font size="2">Ordinary bonds
of euro 5,331 million concern primarily notes issued by Eni in
its Euro Medium Term Notes program for a total of euro 4,296
million and other ordinary bonds for a total of euro 1,035
million. Ordinary bonds, including the issuing entity, the
expiration dates and the interest rates, by currency, are as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp; </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>Maturity</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>% rate</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="0" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="0" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="39%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Amount</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1"><b>Value</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>from</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>to</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>from</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>to</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1"><b>Issuing entity</b></font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1"><i>Euro
        Medium Term Notes:</i></font></td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni SpA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,500</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">Euro</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2013</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.625</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">851</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">British
        pound</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2010</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2019</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4.875</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5.250</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">696</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">Euro</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2015</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">variable</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni SpA</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">500</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">Euro</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2010</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6.125</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">213</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">US dollar</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2007</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">variable</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Enifin
        SpA</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">100</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">Euro</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2005</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">variable</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">95</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">US dollar</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2014</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.610</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6.820</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">93</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">Japanese
        yen</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2008</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2019</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">0.810</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2.320</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">Swiss franc</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2007</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">variable</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni
        Coordination Center SA</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">73</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">Euro</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2008</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2024</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4.750</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5.050</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Coordination Center SA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">Swiss franc</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2006</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1.750</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Enifin
        SpA</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">Euro</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2005</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3.350</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,296</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1"><i>Other
        bonds:</i></font></td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni USA Inc</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">294</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">US dollar</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2027</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7.300</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni USA
        Inc</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">220</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">US dollar</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2006</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">7.500</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Lasmo Plc <sup>(*)</sup></font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">212</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">British pound</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2009</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10.375</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni USA
        Inc</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">147</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">US dollar</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2007</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6.750</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Enifin SpA</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">129</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">Euro</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2005</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">variable</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">- Eni
        Investment Plc</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><font size="1">British
        pound</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2005</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">variable</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1">- Eni Finance Inc</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><font
        size="1">US dollar</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2005</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10.300</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,035</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,331</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) The bond is guaranteed by a fixed deposit
recorded under non-current receivables (euro 234 million).</font></p>

<p><font size="2">Ordinary bonds due within 18 months amount to
euro 953 million and concern Eni Coordination Center SA (euro 440
million), Enifin SpA (euro 260 million), Eni USA Inc (euro 220
million), Eni Investments Plc (euro 18 million) and Eni Finance
Inc (euro 15 million). During 2004 Eni Coordination Center SA
issued obligations for euro 712 million.</font></p>

<p><font size="2">Long-term debt, including current maturities
and average interest rates, by currency, is as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Average</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Average</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>interest rate</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>interest rate</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Euro</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,235</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.56</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,709</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.33</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">US dollar</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,855</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">5.67</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,548</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">6.54</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">British pound</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">517</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6.47</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,082</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6.09</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Swiss
        franc</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">146</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">0.47</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">146</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1.14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Japanese yen</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">40</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">0.65</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">96</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1.37</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Other</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">33</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">9.99</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">29</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8.74</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,826</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,610</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">At December 31, 2004 Eni maintains committed
unused long-term lines of credit for euro 710 million (completely
used at December 31, 2003). These agreements provide for interest
charges based on prevailing market conditions. Commission fees on
unused lines of credit are not significant.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Certain debt, in the amount of euro 332 million
and euro 274 million at December 31, 2003 and 2004, 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>

<p>&nbsp;</p>

<p style="page-break-before:always"><b>12 Reserves for
contingencies and deferred and other non-current tax liabilities</b></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Amount at the beginning of the year</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Additions</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Deduction</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Other changes</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="center"><font
        size="1"><b>Year-end amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Employee
        retirement and similar obligations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>128</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>31</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(12</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>28</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>175</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Other reserves for contingencies:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- site
        restoration and abandonment</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1,980</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">173</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(51</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(62</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,040</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- environmental risks</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,608</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">97</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(143</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">69</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,631</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- loss
        adjustments and actuarial reserves for Eni&#146;s
        insurance companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">593</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">599</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- contract penalties and disputes reserve</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">211</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">181</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">-
        restructuring or decommissioning of production facilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">304</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(61</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(75</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">218</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- losses related to investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">106</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(24</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">-
        financial risks</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- reserve for redundancy incentives</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">42</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- other<sup>
        (*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">542</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">269</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(86</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">673</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,394</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>720</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(475</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(106</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,533</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Non-current
        income tax liabilities:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- deferred taxation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,386</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">802</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,276</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">348</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,260</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- other
        tax reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">225</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(73</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">182</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,611</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>826</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(1,349</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>354</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,442</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>8,133</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,577</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(1,836</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>276</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>8,150</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>December 31, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Employee
        retirement and similar obligations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>175</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>57</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(11</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>9</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>230</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Other reserves for contingencies:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- site
        restoration and abandonment</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,040</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">319</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(48</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(254</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,057</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- environmental risks</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,631</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">141</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(136</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,639</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- loss
        adjustments and actuarial reserves for Eni&#146;s
        insurance companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">599</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">58</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(26</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">62</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">693</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- contract penalties and disputes reserve</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">181</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">213</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">-
        restructuring or decommissioning of production facilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">218</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(20</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">179</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- losses related to investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(28</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- OIL
        insurance</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- financial risks</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- reserve
        for redundancy incentives</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(60</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">673</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">465</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(246</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">809</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,533</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,192</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(568</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(285</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,872</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Non-current income tax liabilities:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">- deferred
        taxation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,260</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">797</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(208</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(316</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,533</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">- other tax reserves</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">182</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">73</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">235</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2,442</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>870</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(214</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(330</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2,768</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,150</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,119</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(793</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(606</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,870</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p><font size="2">At December 31, 2004 deductions in reserves
amounted to euro 568 million, of which euro 102 million related
to deductions not corresponding to cash expenditures. The most
significant deductions not corresponding to cash expenditures in
2004 primarily relate to: (i) the reserve created in 2002 by
Stoccaggi Gas Italia SpA following the difference of retroactive
storage tariffs relating to the decision No. 26/2002 of the
Authority for Electricity and Gas. Following compensation made to
interested customers in 2004 Eni believes further compensation to
be unlikely, for this reason the residual amount of the reserve
is considered to be redundant (euro 28 million); and (ii) an
adjustment by Padana Assicurazioni SpA to the &quot;loss
adjustment and actuarial reserve for Eni&#146;s insurance
companies&quot; arising from estimates concerning accident rates
differing from actual experiences (euro 26 million). Other
deductions not corresponding to cash expenditures relate to
various immaterial items.</font></p>

<p><font size="2">At December 31, 2003 deductions in reserves
amounted to euro 475 million, of which euro 129 million related
to deductions not corresponding to cash expenditures. The most
significant deductions not corresponding to cash expenditures in
2003 primarily relate to: (i) an adjustment by Padana
Assicurazioni SpA to the &quot;loss adjustment and actuarial
reserve for Eni&#146;s companies&quot; arising from estimates
concerning accident rates differing from actual experiences (euro
21 million); and (ii) a reversal of the item &quot;Contract
penalties and disputes reserve&quot; (euro 19 million) due to the
fact that previously Eni had accrued a provision 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.</font></p>

<p><font size="2">The &quot;Site restoration and
abandonment&quot; reserve of euro 2,057 million represents
primarily the estimated costs for well-plugging, abandonment and
site restoration (euro 2,024 million). Other changes for euro 254
million concern primarily the transfer of the site restoration
and abandonment reserve due to the sale of mineral assets (euro
221 million) and an exchange rate loss from the translation of
financial statements denominated in currencies other than the
euro (euro 27 million). The total estimated future site
restoration and abandonment costs for Eni&#146;s worldwide oil
and gas properties totaled approximately euro 2,964 million at
December 31, 2004 (euro 2,700 million at December 31, 2003).</font></p>

<p><font size="2">The &quot;Environmental risks&quot; reserve of
euro 1,639 million represents primarily the estimated costs of
remediation in accordance with existing laws and regulations, of
active production facilities for Syndial SpA (euro 1,275
million), the Refining &amp; Marketing segment (euro 233 million)
and the Gas &amp; Power segment (euro 64 million). Additions euro
141 million relate primarily to the Refining &amp; Marketing
(euro 122 million) and Exploration &amp; Production (euro 18
million) segments.</font></p>

<p><font size="2">The &quot;Loss adjustment and actuarial
reserves for Eni&#146;s insurance companies&quot; of euro 693
million represents the liabilities accrued for claims on
insurance policies underwritten by Eni&#146;s captive insurance
company.</font></p>

<p><font size="2">Contingent liabilities are included primarily
under the caption &quot;Contract penalties and disputes
reserve&quot;.The balance of euro 213 million at December 31,
2004 is comprised of numerous matters of differing nature.
Accruals have been based on Eni&#146;s best estimate of the
expected probable liability.</font></p>

<p><font size="2">The &quot;Restructuring or decommissioning of
production facilities&quot; reserve of euro 179 million mainly
represents the estimated costs related to divestments and
facilities closures of Syndial SpA (euro 157 million). Other
changes relate in particular to the reclassifications to
&quot;Reserve for redundancy incentives&quot; made by Syndial SpA
(euro 20 million).</font></p>

<p><font size="2">The &quot;Reserve for losses on
investments&quot; of euro 91 million represents losses on
investments incurred to date in excess of their carrying value
(Note 7).</font></p>

<p><font size="2">The &quot;OIL insurance&quot; reserve of euro
91 million include a provision related to the estimated charges
due by Eni for the participation in the mutual insurance of Oil
Insurance Ltd, relating to accidents occurred in the past 5
years.</font></p>

<p><font size="2">The &quot;Financial risks&quot; reserve of euro
64 million includes, essentially, the charge related to the sale
to British Telecom Plc of a credit of euro 87 million towards
Eni&#146;s affiliate Albacom SpA (euro 62 million).</font></p>

<p><font size="2">The &quot;Reserve for redundancy
incentives&quot; of euro 36 million represents liabilities
primarily for the Refining &amp; Marketing segment (euro 15
million), the Oilfield Services, Construction and Engineering
segment (euro 9 million) and the Petrochemicals segment (euro 8
million). Other changes for euro 24 million concern primarily the
reclassification from the &quot;Restructuring or decommissioning
of production facilities&quot; reserve made by Syndial SpA (euro
20 million).</font></p>

<p><font size="2">With respect to the foregoing liabilities, Eni
does not expect any material, reasonably possible, additional
loss beyond the amounts accrued above.</font></p>

<p><font size="2">&quot;Net Deferred tax liabilities&quot; of
euro 2,533 million have already been reduced by deferred tax
assets for which Eni possesses the legal right of offset. Other
changes of euro 316 million concern, primarily, the set-off, for
each company, of tax assets and deferred tax liabilities (euro
220 million) and net exchange differences due to the translation
of financial statements prepared in currencies other than euro
(euro 51 million).</font></p>

<p><font size="2"><b>Net deferred income tax liabilities</b></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Deferred income taxes</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,032</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,560</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Deferred
        tax assets may be offset</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(1,772</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(2,027</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,260</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,533</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Deferred
        tax assets may not be offset</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(2,167</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(2,203</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>93</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>330</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">The most significant temporary differences
giving rise to net deferred tax liabilities are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="12%"><p
        align="right"><font size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="12%"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Deferred tax liabilities:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        anticipated and accelerated depreciation</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">3,132</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">3,778</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- differences between purchase cost and net book
        value of acquired consolidated companies</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">448</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">294</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- reserve
        for uncollectable receivables</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">150</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">137</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- reserves for accelerated contingencies</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">89</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- gains
        taxable in the future</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">62</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">46</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- distributable reserves subject to taxes</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">130</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">202</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>4,032</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,560</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Deferred
        tax assets:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- accruals for doubtful accounts and reserve for
        contingencies</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(1,869</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,054</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- tax loss
        carryforwards</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">(1,403</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(1,124</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- asset revaluations as per Law 342/2000</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(760</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(855</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        investment revaluations in accordance with Law 292/1993
        and the allocation <br>
        &nbsp;&nbsp;&nbsp;of the merger difference arising from
        the merger of Agip SpA into Eni SpA</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">(818</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(818</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- asset revaluations as per Law 448/2001</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(424</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(639</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- losses
        of investments and subsidiaries in excess of currently
        allowable tax deductions</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">(644</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(472</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- future deductible amortization</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(432</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        writeoffs of tangible, intangible assets and or
        inventories deductible in the future</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">(355</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(255</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- other</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1">(724</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(599</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1"><b>(7,269</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(7,248</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Less:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Valuation
        allowance</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1">3,330</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">3,018</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"
        bgcolor="#EEEEEE"><p align="right"><font size="1"><b>(3,939</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(4,230</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        deferred tax liabilities</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="11%"><p
        align="right"><font size="1"><b>93</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>330</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td align="center" valign="bottom" width="12%"><hr
        size="1" noshade color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">The valuation allowance for deferred tax assets
(euro 3,330 and 3,018 million for the years ending December 31,
2003 and 2004 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.</font></p>

<p><font size="2"><b>Tax loss carryforwards</b></font></p>

<p><font size="2">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, which have no
expiration date. For non-Italian tax loss carryforwards, the
period generally averages 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 36%
for foreign companies.</font></p>

<p><font size="2">Gross tax loss carryforwards of euro 3,413
million expire as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Domestic</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Foreign</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">2005</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">2006</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">415</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">55</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">2007</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">944</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">143</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">2008</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">275</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">190</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">2009</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">19</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">over 2009</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">206</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">without expiration</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,090</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>1,684</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>1,729</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Tax loss carryforwards expected to be utilized
amount to euro 295 million and relate primarily to foreign
companies (euro 206 million). The tax effect of such tax loss
carryforward is euro 73 million.</font></p>

<p><font size="2">Other tax reserves of euro 235 million include
primarily estimated charges 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 1999 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, with a few exceptions, all tax years prior to
1999 have been settled.</font></p>

<p>&nbsp;</p>

<p><b>13 Shareholders&#146; equity</b></p>

<p><font size="2"><b>Share capital</b></font></p>

<p><font size="2">Eni SpA had 4,004,424,476 shares (nominal value
euro 1 each) fully paid-up as of December 31, 2004 (4,002,922,176
at December 31, 2003), of which: (i) 2,556,297,973 shares,
corresponding to 63.84% are publicly held; (ii) 813,443,277
shares, corresponding to 20.31% are held by the Ministry of
Economy and Finance; (iii) 400,288,388 shares, corresponding to
10% are held by Cassa depositi e prestiti SpA; (iv) 234,394,888
shares, corresponding to 5.85% are held by Eni SpA. During 2004
1,502,300 shares subscribed by managers have been issued under
the stock grant plan following the expiration of the plan issued
in 2001 (1,344,750 shares) and the agreed termination of
employment of some managers (157,550 shares, of which 112,450
shares related to the plan issued in 2001 and 45,100 shares
related to the plan issued in 2002).</font></p>

<p><font size="2"><b>Reserves</b></font></p>

<p><font size="2">The legal reserve of Eni SpA represents
earnings restricted from the payment of dividends pursuant to the
Italian Civil Code (the &quot;Civil Code&quot;). 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&#146;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&#146;s issued and outstanding share
capital. Such dividend restriction also applies to each Italian
subsidiary of Eni.</font></p>

<p><font size="2">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 No. 730/1983, No.
749/1985 and No. 41/1986, were obligations of the Government.</font></p>

<p><font size="2">The &quot;Reserve for the issue of shares in
accordance with Article 2349 of the Italian Civil Code&quot;
contains earnings destined to increase share capital under the
stock option plan. At December 31, 2004 the number of shares to
assign for no consideration is 938,000 shares nominal value 1
euro (2,443,050 shares at December 31, 2003).</font></p>

<p><font size="2">Exchange rate differences due to the
translation of financial statements prepared in currencies other
than euro amounted to euro 697 million, of which euro 500 million
related to companies whose functional currency is the US dollar.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Approximately euro 23,300 million was
unrestricted as to payment of dividends at December 31, 2004, a
portion of which is subject to taxation upon distribution.
Deferred tax liabilities for euro 20 million have been recorded
in relation to the reserves expected to be distributed.</font></p>

<p><font size="2"><b>Treasury shares</b></font></p>

<p><font size="2">Treasury shares amount to euro 3,229 million
(euro 3,164 million at December 31, 2003) and consist of
234,394,888 ordinary shares nominal value euro 1 owned by Eni SpA
(230,568,453 ordinary shares nominal value euro 1 as of December
31, 2003). Such shares are valued at cost and have been
repurchased to increase shareholder&#146;s value in accordance
with the decisions of Eni&#146;s shareholders meeting.</font></p>

<p style="page-break-before:always"><font size="2"><b>Reconciliation
of statutory net income and shareholders&#146; equity to
consolidated net income and shareholders&#146; equity</b></font></p>

<p><font size="2">The statutory financial statements of
subsidiaries reflect certain tax-driven entries. In addition, Eni
SpA&#146;s statutory financial statements do not reflect the
consolidation of subsidiary companies.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">The reconciliation of net income and
shareholders&#146; equity as reported in Eni SpA&#146;s statutory
financial statements to those reported in the consolidated
financial statements is as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="26%"><p align="center"><font
        size="1"><b>Net income</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="32%"><p align="center"><font
        size="1"><b>Shareholders&#146; equity</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="26%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="32%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1"><b>As recorded in Eni SpA&#146;s financial
        statements</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,880</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,850</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,684</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>26,498</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>27,566</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>29,433</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Treasury
        shares</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(2,838</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(3,164</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(3,229</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Difference between the equity value and result
        of consolidated companies and the equity value and result
        of consolidated companies as accounted for in Eni SpA
        financial statements</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,049</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,526</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7,118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,413</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,852</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Consolidation
        adjustments:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">- difference between cost and underlying value
        of equity</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(169</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(161</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,131</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,873</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,745</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">-
        elimination of tax adjustments and compliance <br>
        </font><font size="2">&nbsp;&nbsp;&nbsp;</font><font
        size="1">with accounting policies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,261</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,453</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,736</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(1,218</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(1,432</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(4,816</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">- elimination of unrealized intercompany
        (profits) losses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,024</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">132</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,777</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,409</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,468</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">- deferred
        taxation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">120</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(138</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,318</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">120</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">117</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,645</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">- other adjustments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">360</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">317</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">354</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">304</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,222</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>6,154</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,888</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>28,351</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>28,318</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>32,466</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Minority interest</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(629</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(569</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(614</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,094</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,622</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,128</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1"><b>As
        recorded in consolidated financial statements</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>4,593</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,585</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,274</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>26,257</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>26,696</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>30,338</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">In 2004, other adjustments of net income of
euro 360 million include euro 311 million, which is related to
the fact that the gains from the sale to Mediobanca SpA of shares
representing 9.054% of the share capital of Snam Rete Gas SpA
were higher in the consolidated financial statements than in Eni
SpA financial statements.<br>
<br>
<br>
</font><b>14 Net sales from operations</b></p>

<p><font size="2">Net sales from operations are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Gross sales from operations</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">61,500</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">65,362</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">72,509</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Change in
        contract work in progress</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,127</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,150</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Less:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- excise
        tax</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(13,139</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(13,520</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(14,060</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- services billed to joint venture partners </font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,566</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,505</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,175</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>47,922</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>51,487</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>58,382</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Net sales from operations for the three years
ending December&nbsp;31, 2004, are netted of euro
1,763&nbsp;million, euro 1,490&nbsp;million and euro 1,511
million, respectively, for buy/sell contracts associated with
crude oil and refined products.</font><b><br>
<br>
<br>
15 Purchases, services and other</b></p>

<p><font size="2">Purchases, services and other include the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Production costs-raw, ancillary and consumable
        materials and goods</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22,658</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">24,087</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27,489</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Production
        costs-services</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">8,614</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">10,431</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">10,675</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Lease, rental and royalty expenses</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,454</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,407</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,600</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Other
        expenses</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,575</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,433</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,552</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>34,301</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>37,358</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>41,316</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">less:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- services billed to joint venture partners</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,566</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,505</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,175</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        capitalized direct costs associated with self-constructed
        assets</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(842</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(1,277</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(1,010</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- repayment of royalties</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(23</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        personnel seconded</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(10</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>31,893</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>34,566</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>39,092</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Lease, rentals and royalty expenses include
royalties on hydrocarbons extracted for euro 508 million, euro
538 million and euro 744 million in 2002, 2003 and 2004
respectively.</font></p>

<p><font size="2">Production costs-raw, ancillary and consumable
materials and goods for the three years ending December&nbsp;31,
2004, 2003 and 2002 are netted of euro 1,763&nbsp;million, euro
1,490&nbsp;million and euro 1,511 million, respectively, for
buy/sell contracts associated with crude oil and refined
products.<br>
<br>
<br>
</font><b>16 Payroll and related costs</b></p>

<p><font size="2">Payroll and related costs are analyzed as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Wages and salaries</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,441</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,412</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,481</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Social
        security contributions</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">650</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">693</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">672</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Employee termination indemnities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">126</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">124</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Pensions
        and similar obligations</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">58</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Other costs</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">119</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">99</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,346</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,353</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,434</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Plus:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        personnel seconded</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Less:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- revenues
        related to personnel costs</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(53</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(36</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(35</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- capitalized direct costs associated with
        self-constructed assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(190</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(161</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(151</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,103</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,166</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,264</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>17 Depreciation, amortization and writedowns</b></p>

<p><font size="2">Depreciation, amortization and writedowns
consist of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Depreciation and amortization:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        intangible assets</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,423</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,266</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,043</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- fixed assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,543</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,447</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,525</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,966</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,713</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,568</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Writedowns:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        intangible assets</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">95</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- fixed assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">447</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">411</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">293</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>542</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>441</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>295</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,508</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,154</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,863</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Less:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- direct costs associated with self-constructed
        assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>5,504</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>5,151</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,861</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>18 Financial income (expense) and exchange differences, net</b></p>

<p><font size="2">Financial expense and exchange differences,
net, consist of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Interest and other financial income</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">512 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">436 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">451</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Securities
        gains</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">44 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">34 </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Interest and other financial expense</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(737</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(710</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(729</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Exchange
        differences, net</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(30</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Less:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#FFFFFF"><font
        size="1">- interest capitalized</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">44 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">86 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">154</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(167</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(154</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(95</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">Interest and other financial expense of euro
729 million include the charge related to the sale to British
Telecom Plc of a credit of euro 87 million towards Eni&#146;s
affiliate Albacom SpA (euro 62 million).</font></p>

<p>&nbsp;</p>

<p><b>19 Other income (expense) from investments</b></p>

<p><font size="2">Other income (expense) from investments
consists of the following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Income from equity investments</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">178</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">180</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">199</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Dividends </font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">72</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Gains on disposals</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Other
        revaluation of investments</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Writedown of investments</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(222</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(81</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>43 </b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(17</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>229</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>20 Extraordinary income (expense)</b></p>

<p><font size="2">Extraordinary income (expense) consists of the
following:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Extraordinary income</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Gains on
        disposals</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">257</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">290</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">661</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Other extraordinary income</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">112</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">273</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">44</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>369</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>563</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>705</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Extraordinary expense</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Restructuring
        cost:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- provisions for risks</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(157</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(248</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(601</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- cost of
        redundancy incentives</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(114</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(116</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(54</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- writedowns of fixed assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(326</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(430</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(675</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Other extraordinary expenses</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(84</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(398</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(514</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>(761</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(29</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>49</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(56</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>2004 Extraordinary items</b></font></p>

<p><font size="2">Gains on disposals of euro 661 million concern
primarily: (i) the sale to Mediobanca SpA of shares representing
9.054% of the share capital of Snam Rete Gas SpA (euro 519
million); (ii) the sale of the oil and LPG products distribution
company Agip do Brasil SA (euro 94 million); (iii) the sale of a
business related to the waste disposal in Ravenna (euro 27
million); (iv) the sale of service stations in the Refining &amp;
Marketing segment (euro 12 million).</font></p>

<p><font size="2">Provisions for risks of euro 601 million relate
primarily to: (i) charges for environmental remediation of
Syndial SpA (euro 162 million) and the Refining &amp; Marketing
segment (euro 141 million); (ii) provisions for future risks
related to the estimated charges due by Eni for the participation
in the mutual insurance Oil Insurance Ltd relating to accidents
occurred in the past 5 years (in particular, to substantial
damages recorded in 2004).This amount will be paid in the next 5
years (euro 91 million); (iii) charges for liabilities considered
probable relating to guarantees given in relation to sale
transactions in the Refining &amp; Marketing segment (euro 64
million); (iv) provisions for tax proceedings due to a tax claim
in Angola (euro 39 million) and restructuring costs (euro 14
million) in relation to the rationalization of the presence of
the Exploration &amp; Production segment in the United Kingdom;
(v) future operating costs of inactive sites in Syndial SpA (euro
20 million).</font></p>

<p><font size="2">Redundancy incentives of euro 54 million
concern primarily the Refining &amp; Marketing segment (euro 20
million), the Gas &amp; Power segment (euro 10 million), the
Petrochemicals segment (euro 6 million) and the Corporate and
financial companies segment (euro 11 million).</font></p>

<p><font size="2">Writedowns and losses of euro 20 million
concern essentially the writedown of the Fornovo plant following
the reorganization of solvent production activities (euro 18
million).</font></p>

<p><font size="2"><b>2003 Extraordinary items</b></font></p>

<p><font size="2">Gains on disposals relate to the 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).</font></p>

<p><font size="2">Other extraordinary income of euro 273 million
relate primarily to the compensation paid by Edison SpA to
Syndial SpA in relation to the Enimont dispute (euro 200
million), the release of reserves for excess provisions and the
definition of legal proceedings (euro 47 million, of which euro
38 million relating to Syndial SpA).</font></p>

<p><font size="2">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).</font></p>

<p><font size="2">Redundancy incentives of euro 116 million
concern primarily the Petrochemical segment (euro 37 million),
the Refining &amp; Marketing segment (euro 32 million), the Gas
&amp; Power segment (euro 15 million) and the Oilfield Services,
Construction and Engineering segments (euro 15 million).</font></p>

<p><font size="2">Writedowns and losses of euro 66 million
include the loss of concessions for highway service stations
(euro 35 million) and the writedown of plants in the
Petrochemicals segment (euro 11 million).</font></p>

<p><font size="2"><b>2002 Extraordinary items</b></font></p>

<p><font size="2">Gains on disposals relate to sales of
investments, businesses and fixed assets as a result of
restructuring activities. In particular gains on disposal 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).</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Redundancy incentives of euro 114 million
concern primarily the Petrochemical segment (euro 34 million),
the Gas &amp; Power segment (euro 27 million), the Refining &amp;
Marketing segment (euro 25 million) and the Oilfield Services,
Construction and Engineering segments (euro 14 million).</font></p>

<p><font size="2">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 related to the
Gas &amp; Power segment).</font></p>

<p>&nbsp;</p>

<p><b>21 Income taxes</b></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Current taxes:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- Italian
        subsidiaries</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,451</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,583</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1,138</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- foreign subsidiaries operating in the
        Exploration &amp; Production segment</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,040</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,127</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- other
        foreign subsidiaries</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">163</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">201</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">231</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,654</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,080</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,496</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Less:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- Tax credits on dividend distributions not
        offset with current tax payment</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,654</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,080</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,457</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Deferred taxes:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- Italian
        subsidiaries</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(542</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(904</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">184</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- foreign subsidiaries operating in the
        Exploration &amp; Production segment</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- other
        foreign subsidiaries</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(38</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(527</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(839</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>196</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,127</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>3,241</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>4,653</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Income taxes payable of euro 1,138 million
relate to Ires (National income tax) for euro 863 million and
Irap (Regional income tax) for euro 262 million and foreign
income taxes of euro 13 million.</font></p>

<p><font size="2">The effective tax rate is 37.1% compared with a
statutory tax rate of 38.5%, calculated by applying a 33% tax
rate (Ires) to income before taxes and 4.25% tax rate (Irap) to
the net value of production as provided for by Italian laws.</font></p>

<p style="page-break-before:always"><font size="2">The difference
between the statutory and effective tax rate is due to the
following factors:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(%)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1"><b>Statutory tax rate</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>42.1</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>39.9</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>38.5</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Items
        increasing (decreasing) statutory tax rate:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- higher (lower) foreign subsidiaries tax rate</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7.4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5.4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">-
        permanent differences</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">0.8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(0.2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(0.9</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- revaluation of anticipated taxes</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1.0</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- effect
        of the application of Law No. 448/2001</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(3.1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(2.0</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- effect of the application of Law No. 342/2000</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4.7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3.6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2.1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">- tax
        benefit due to the application of favorable tax laws</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(4.9</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(1.4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">- effect of the budget Law 2004</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4.4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">1.5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(0.1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(0.8</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(4.6</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(5.4</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(1.4</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1"><b>Effective
        tax rate</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>37.5</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>34.5</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1"><b>37.1</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Permanent differences in 2004 concern mainly
the gain recorded in the consolidated financial statements due to
the sale of 9.054% of the share capital of Snam Rete Gas SpA
(1.4%). The tax benefit due to the application of Law No.
448/2001 relates to Stoccaggi Gas Italia SpA that aligned the tax
bases of the assets received in 2001 by Eni SpA and Snam SpA to
the conferral value by paying a discounted tax rate of 9%. In
2004, Eni recognized deferred tax assets on natural gas
inventories, that had been previously depreciated, because they
were considered to not be recoverable with reasonable certainty
in the future, as Law No. 170/1974 did not envision limits for
the renewal of storage concessions. During 2004 Law No. 239/2004
was approved, that provided that the holder of a storage
concession can have only two extensions of 10 years, therefore
there are no longer uncertainties about the recovery of deferred
tax assets. The recording of deferred tax assets follows the
inclusion of Syndial SpA in the Consolidato fiscale nazionale
(National Consolidated tax return) that allows the recognition of
deferred tax assets deriving mainly from reserves for
contingencies and the writedown of fixed assets that were not
fiscally deducted. Tax benefits on revaluation of assets,
relating to 2003, are due to the application of the budget Law
for 2004 that allowed companies to revalue the assets within
certain limits made in accordance with tax laws by paying a lower
tax rate of 19%.</font></p>

<p>&nbsp;</p>

<p><b>22 Earnings per share</b></p>

<p><font size="2">Earnings per share is calculated by dividing
&quot;Net income&quot; by the weighted-average number of shares
issued and outstanding during the year, excluding treasury
shares.</font></p>

<p><font size="2">In order to compare earnings per share in the
years presented, the number of shares issued through stock grants
made in 2003 and 2004 has been added to the number of shares
outstanding in the years 2002 and 2003. Based on this criterion,
the number of shares outstanding was 3,828,447,971, 3,779,938,557
and 3,771,692,584 in the years 2002, 2003 and 2004, respectively.</font></p>

<p><font size="2">The dilutive effect of potential ordinary
shares on earnings per share, when stock options and stock
grants, are converted into ordinary shares, is not material.</font></p>

<p>&nbsp;</p>

<p><b>23 Commitments and contingencies</b></p>

<p><font size="2"><b>Derivative financial instruments</b></font></p>

<p><font size="2">Eni operates internationally in the oil and
natural gas, electricity generation, petrochemicals and oilfield
services, construction and engineering businesses and is subject
to exposure to market risks from changes in interest rates,
foreign exchange rates and commodity prices.</font></p>

<p><font size="2">Derivative financial instruments are utilized
by Eni to reduce these risks, as explained below.</font></p>

<p><font size="2">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>

<p><font size="2">Eni&#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>

<p><font size="2">Eni does not enter into derivative transactions
on a speculative basis.</font></p>

<p><font size="2"><i>(a) Notional amounts and credit exposures of
derivatives</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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&#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><font size="2"><i>(b) Interest rate risk management</i></font></p>

<p><font size="2">Eni enters into various types of interest rate
contracts in managing its interest rate risk, as indicated in the
following table:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Dec. 31, 2003 Notional amount</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Dec. 31, 2004 Notional amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Interest rate swaps</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,690</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,663</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Interest
        rate collars</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">74</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">33</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,764</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,696</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Eni enters into interest rate derivatives,
particularly interest rate swaps, 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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="58%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="1">Receive-fixed/Pay-floating swaps-notional amount</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">867</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">745</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="1">- weighted
        average receive rate</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">6.03</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">5.78</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="1">- weighted average pay rate</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.26</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.19</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="1">- weighted
        average maturity</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(years)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2.97</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2.26</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="1">Receive-floating/Pay-floating swaps-notional
        amount</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,941</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,989</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="1">- weighted
        average receive rate</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2.25</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2.32</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="1">- weighted average pay rate</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.91</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.00</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="1">- weighted
        average maturity</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(years)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3.38</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2.38</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="1">Pay-fixed/Receive-floating swaps-notional amount</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(million euro)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,882</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,929</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="1">- weighted
        average pay rate</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">4.31</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">4.18</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%" bgcolor="#EEEEEE"><font
        size="1">- weighted average receive rate</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1.77</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.25</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%"><font size="1">- weighted
        average maturity</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(years)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">6.64</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">6.37</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="58%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font 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. At year-end 2004 Eni holds a single
interest rate collar contract, that will expire on June 30, 2006.</font></p>

<p><font size="2"><i>(c) Foreign exchange risk management</i></font></p>

<p><font size="2">Eni enters into various types of foreign
exchange contracts in managing its foreign exchange risk, as
indicated in the following table:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Dec. 31, 2003 Notional amount</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Dec. 31, 2004 Notional amount</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Forward exchange contracts</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,165</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,501</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Purchased
        options</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">550</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">91</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,715</b></font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,592</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font 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 increase of
euro 2,336 million in forward exchange contracts is primarily due
to Enifin SpA&#146;s transactions in order to hedge financial
short-term payables of Eni Coordination Center SA (euro 1,785
million).</font></p>

<p><font size="2">Eni generally uses a combination of currency
options that enable a predetermined risk rate band, related to
expenses denominated in currencies 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. The decrease of euro 459 million is
essentially due to the expiration of options of the Oilfield
Services, Construction and Engineering segment (euro 296 million)
and Gas &amp; Power segment (euro 144 million).</font></p>

<p style="page-break-before:always"><font size="2">The table
below summarizes, by major currency, the contractual amounts of
Eni&#146;s forward exchange and option contracts.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="43%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Buy</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Sell</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Buy</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Sell</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%" bgcolor="#EEEEEE"><font
        size="1">US dollar</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,019</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,955</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">622</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,024</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%"><font size="1">British
        pound</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,432</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">342</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,065</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">107</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%" bgcolor="#EEEEEE"><font
        size="1">Norwegian kroner</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">140</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">299</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">267</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">162</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%"><font size="1">Euro</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">100</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">126</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">71</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">113</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%" bgcolor="#EEEEEE"><font
        size="1">Japanese yen</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">99</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">97</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%"><font size="1">Swiss
        franc</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">177</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">51</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%" bgcolor="#EEEEEE"><font
        size="1">Other</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2,970</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>3,745</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>4,180</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>4,412</b></font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><i>(d) Commodity price risk management</i></font></p>

<p><font size="2">Exchange traded crude oil and petroleum product
derivative instruments are used to minimize the commodity price
volatility.</font></p>

<p><font size="2">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 petroleum products in the international markets.</font></p>

<p><font size="2">In refining and marketing activities of
petroleum products, Eni uses derivative instruments with the aim
of reducing the risk of marketing activities related to the
uncertainty of market prices in the period between the purchase
of crude oil, the refining and the trade of finished products.</font></p>

<p><font size="2">The expiration date of contracts is less than 1
year.</font></p>

<p><font size="2">The table below summarizes trade derivative
contracts at December 31, 2003 and 2004.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Buy</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Sell</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Buy</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Sell</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="1">Crudes</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(barrels)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,629,544</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,146,000</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,497,121</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,949,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="1">Oil
        products</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(tonnes)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">159,849</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">381,200</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">434,150</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">287,411</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%" bgcolor="#EEEEEE"><font
        size="1">Oil products</font></td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(gallons)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">104,580</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,620</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="28%"><font size="1">Electrical
        energy</font></td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">(megawatthour)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">804,507</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="43%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2"><i>(e) Sales of government bonds</i></font></p>

<p><font size="2">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, 2003 and 2004, euro 181 million and euro 183 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><font size="2"><b>Guarantees</b></font></p>

<p><font size="2">Guarantees have been given by Eni to third
parties. At December 31, 2003 and 2004, these guarantees were as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="21%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>At Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="39%"><p align="center"><font
        size="1"><b>At Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="39%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="21%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Unsecured guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Other guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Secured guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Total</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Unsecured guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Other guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Secured guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="32">&nbsp;</td>
        <td valign="bottom" width="9%" height="32"><p
        align="center"><font size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
        <td>&nbsp;</td>
        <td><hr size="1" noshade color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%" bgcolor="#EEEEEE"><font
        size="1">Unconsolidated subsidiaries</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">302</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">309</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">532</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">539</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%"><font size="1">Affiliated
        companies</font></td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,685</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">77</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,792</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">72</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,834</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">40</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,946</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%" bgcolor="#EEEEEE"><font
        size="1">Consolidated companies</font></td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,894</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,090</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10,984</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,894</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9,715</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14,609</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%"><font size="1">Others</font></td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">198</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">198</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">169</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">174</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,931</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,275</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>77</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>13,283</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,978</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12,250</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>40</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>17,268</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="21%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Unsecured guarantees and other guarantees given
on behalf of unconsolidated subsidiaries and affiliated companies
of euro 2,485 million (euro 2,101 million as of December 31,
2003) consist primarily of: (i) unsecured guarantees, letters of
patronage and other guarantees given to banks in relation to
loans and lines of credit received for euro 1,699 million (euro
1,473 million at December 31, 2003), of which euro 731 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 686 million as of December 31, 2003)
and euro 404 million relating to unsecured guarantees given by
Enifin SpA on behalf of Spanish Egyptian Gas Co SAE, a company
controlled by Uni&#243;n Fenosa Gas SA, (euro 238 million at December
31, 2003); (ii) unsecured guarantees and letters of patronage
given to customers in relation to contractual performance and bid
bonds for euro 214 million (euro 242 million as of December 31,
2003); (iii) the fulfilment of obligations related to hydrocarbon
exploration activities given on behalf of Eni Middle East BV
against the contractual commitments with the Government of the
Kingdom of Saudi Arabia for euro 367 million; (iv) performance
guarantees of euro 111 million (euro 104 million at December 31,
2003) given on behalf of Uni&#243;n Fenosa SA and Uni&#243;n Fenosa Gas
SA (Eni&#146;s interest 50%). These guarantees were given in
relation to contractual commitments related to the results of
operations of Uni&#243;n Fenosa Gas SA; (v) unsecured guarantees
given to third parties in relation to the construction of a
hydrocarbon treatment plant in Libya for euro 17 million (euro
160 million at December 31, 2003). The decrease of euro 143
million regards primarily the partial extinguishment of
guarantees; (vi) secured guarantees of euro 40 million (euro 77
million at December 31, 2003), relate to mortgages, liens and
privileges granted to banks in connection with loans to
affiliated and consolidated companies. As of December 31, 2004,
the underlying commitment covered by such guarantees was euro
1,825 million (euro 1,959 million as of December 31, 2003).</font></p>

<p><font size="2">Guarantees given on behalf of consolidated
companies of euro 14,609 million (euro 10,984 million as of
December 31, 2003) consist primarily of: (i) a guarantee of euro
4,894 million (the same amount as of December 2003) 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 CEPAV (Consorzio Eni per l&#146;Alta Velocit&#224;) Uno
consortium; consortium members gave Eni liability of surety
letters and bank guarantees amounting to 10% of their respective
portion of the work; (ii) parent company guarantees given
relating to contractual commitments for hydrocarbon exploration
activities for euro 4,601 million determined on the basis of
investment plans (euro 1,186 million at December 31, 2003). The
increase of euro 3,415 million was primarily due to an increase
in the guarantees given by Eni SpA on behalf of Agip Caspian Sea
BV relating to contractual commitments for hydrocarbon
exploration activities in the Republic of Kazakhstan for euro
3,329 million; (iii) guarantees given to third parties relating
to bid bonds and performance bonds for euro 2,977 million (euro
2,841 million as of December 31, 2003); (iv) VAT recoverable from
tax authorities for euro 1,196 million (euro 1,113 million as of
December 31, 2003); (v) insurance risk for euro 396 million
reinsured by Eni (euro 379 million as of December 31, 2003). The
underlying commitment covered by such guarantees was euro 9,882
million as of December 31, 2004 (euro 7,930 million as of
December 31, 2003).</font></p>

<p><font size="2">Other guarantees given to third parties for
euro 174 million (euro 198 million as of December 31, 2003)
regard essentially: (i) guarantees given by Eni to banks and
other financing institutions in relation to loans and lines of
credit on behalf of subsidiaries and companies sold for euro 95
million (euro 96 million as of December 31, 2003); (ii)
performance guarantees given on the behalf of Uni&#243;n Fenosa SA
and Uni&#243;n Fenosa Inversiones SA in relation to contractual
commitments related to the results of operations of subsidiaries
of Uni&#243;n Fenosa Gas SA for euro 41 million (euro 73 million at
December 31, 2003). The underlying commitment covered by such
guarantees was euro 76 million as of December 31, 2004 (euro 97
million as of December 31, 2003).</font></p>

<p><font size="2"><b>Other commitments</b></font></p>

<p><font size="2">Other commitments and potential risks consist
primarily of:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">Obligations
        for purchase and sale of fixed assets of euro 324 million
        (euro 355 million as of December 31, 2003) related to
        marketable securities for euro 183 million (euro 181
        million as of December 31, 2003) and investments for euro
        141 million (euro 174 million as of December 31, 2003).
        In particular, obligations related to marketable
        securities concerned the placement on the market of
        securities managed by Sofid Sim SpA. This company sold
        Italian Government bonds to investors, primarily
        employees, and simultaneously entered into interest rate
        swaps with such investors wherein it receives the rate of
        interest on such Italian Government bonds and pays a
        floating rate of interest linked to Euribor. Such
        investors may sell their securities back to Sofid Sim SpA
        at any time for par value plus related interest with the
        simultaneous cancellation of the related swaps. Against
        the commitment related to interest rate swaps Sofid Sim
        receives a variable rate more profitable than the one
        renown by the shareholders. Obligations relating to
        investments concerned primarily the concession to Erg SpA
        of a call option for the purchase of a 28% share of Erg
        Raffinerie Mediterranee SpA for euro 100 million (the
        same amount as of December 31, 2003).</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">Commitments
        of euro 319 million (euro 379 million as of December 31,
        2003) primarily related to: (i) a memorandum of intent
        signed with the Basilicata Region whereby Eni has agreed
        to invest, also on account of Shell Italia E&amp;P SpA,
        euro 206 million in the future in connection with
        Eni&#146;s development plan of oil fields in Val
        d&#146;Agri (euro 217 million as of December 31, 2003);
        (ii) agreements for the area of Porto Marghera between
        Syndial SpA and various government entities, employee and
        trade groups whereby Syndial SpA has committed to invest
        approximately euro 90 million (euro 149 million as of
        December 31, 2003) in order to further develop the
        chemical segment and protect the environment with respect
        to the Porto Marghera plant.</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">Risks of euro
        1,151 million (euro 902 million as of December 31, 2003)
        are primarily associated with: (i) contractual assurances
        given to acquirors of certain investments and businesses
        of Eni for euro 406 million (euro 400 million as of
        December 31, 2003); (ii) potential risks associated with
        the value of assets of third parties under the custody of
        Eni for euro 551 million (euro 317 million as of December
        31, 2003). The euro 234 million increase regards
        primarily the increase in natural gas volumes stored by
        Stoccaggi Gas Italia SpA (euro 236 million); (iii)
        environmental damages for euro 137 million (the same
        amount as of December 31, 2003); (iv) tax proceedings for
        euro 37 million (euro 18 million as of December 31,
        2003).</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
</table>

<p><b>Legal proceedings</b></p>

<p><font size="2">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.</font></p>

<p><font size="2">Following is a description of the most
significant proceedings currently pending; unless otherwise
indicated below, no provisions have been made for these legal
proceedings as Eni believes that negative outcomes are not
probable or because the amount of the provision is not reasonably
quantifiable.</font></p>

<p><font size="2"><b>Environment</b></font></p>

<p><font size="2"><i>Eni SpA</i></font></p>

<p><font size="2">In 1997, Grifil SpA summoned AgipPetroli SpA
(merged into Eni SpA in 2002) before the Court of La Spezia.
Grifil requested payment for the remediation of a polluted land
parcel part of the La Spezia refinery (which was closed in 1985),
sold to it in 1996 by Italiana Petroli SpA and later merged into
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, the total amount of which was set by an
independent appraisal at euro 19 million, with AgipPetroli&#146;s
share corresponding 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 fulfill its
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
assistance 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 paying the relevant costs on its
own. Eni requested 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 the right of Eni
legitimate, based on the sale contract stipulated between
Italiana Petroli and Grifil, to claim the payment of all clean-up
expenses that Eni will incur as Grifil did not fulfil its
obligation. The judge closed the inquiry phase and stated that
the judgment can be brought to an end. The final decision is
expected for July 2005. 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 requested Eni to file the
contracts for the remediation work with the court, in which the
amounts paid are recognized. The contract with an international
company specializing in remediation was signed on April 15, 2004
and immediately presented to the Court. In order to preserve
Grifil&#146;s asset as a way to recover its credit versus Grifil,
Eni, which is paying for the remediation works, also filed an
ordinary revocation of title, so that, while waiting for the
Court&#146;s ruling, Grifil will not be able to sell the land
parcel to third parties. Recently, this international company
specializing in remediation has updated the cost to be incurred
for the remediation of this land parcel on the basis of new
information regarding the level of soil pollution. This new
estimate amounts to euro 45 million, for which a relevant charge
has been accrued to the risk reserve.</font></p>

<p><font size="2">In 1999, the public prosecutor of Gela started
an investigation in order to ascertain alleged soil and sea
pollution caused by the discharge of pollutants by Eni's Gela
refinery. In November 2002, &quot;Italia Nostra&quot; and the
association &quot;Amici della Terra&quot; filed civil claims
related to 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
preliminary hearing was carried out on May 24, 2005. The next
hearing is scheduled on October 18, 2005.</font></p>

<p><font 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 emissions in violation of
Presidential Decree No. 203 of 1988. The investigation ended with
an action for events occurred 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 pending.</font></p>

<p><font size="2">In 2002, the public prosecutor of Gela started
an investigation in order to ascertain alleged pollution caused
by emissions of the Gela plant, 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. On January 17, 2005, a second inquiry phase commenced in
2003 to ascertain which sort of emissions had eventually produced
the alleged pollution caused by the refinery of Gela, was
completed.</font></p>

<p><font 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 requested a technical opinion, not yet concluded,
to ascertain alleged infiltrations of refinery 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 wells for drinking water in an area farther
from and higher than 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>

<p><font 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 natural heritage. On May
12, 2004 the first hearing was held for an immediate decision.
The proceeding is pending.</font></p>

<p><font size="2">In 2002, the public prosecutor of Gela started
a penal investigation concerning the refinery of Gela to
ascertain the quality of ground 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 the presence
of infiltrations of refinery products into the deep water-bearing
stratum, due to a breakage in some tanks. The investigation
concerns the environmental rules about the pollution of water and
soil and illegal disposal of liquid and solid waste materials.
With a decision of 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 activity at the refinery of
Gela in November 17, 2003 following the inquiry phase and many
investigations, inspections and analyses were made by experts
appointed by the judge for the preliminary investigation. These
experts declared there had been no reasonable loss of products
from storage tanks. Thereafter, 42 storage tanks were reopened
and this allowed activity at the facility to restart of the on
January 19, 2004. Following this, another 38 tanks were reopened,
12 remained under seizure at December 31, 2004.</font></p>

<p><font 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 - 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 -
Ravenna Mare Sud fields and related wells and platforms. On March
10, 2005, the Supreme Court confirmed the decision of the Court
of Rovigo lifting the seizure on Eni&#146;s fields, thus
rejecting the appeal presented by the Public Prosecutor. 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 to the Casalborsetti facility. Eni believes
it has 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, chaired by Prof. Enzo
Boschi, professor of seismology at the Universit&#224; degli Studi di
Bologna and chairman of the Istituto nazionale di geofisica e
vulcanologia, 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 safety 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.</font></p>

<p><font size="2"><i>EniPower SpA</i></font></p>

<p><font size="2">In autumn 2004 the Public Prosecutor of Rovigo
started an investigation for alleged crimes related to
unauthorized waste management activities in Loreo. Samples of the
soil taken from Loreo and from EniPower&#146;s site in Mantova
are currently being examined.</font></p>

<p><font size="2"><i>Polimeri Europa SpA</i></font></p>

<p><font size="2">In 2002, the public prosecutor of Gela started
a criminal action in order to ascertain alleged illegally
discharge of effluents produced by the Gela plant, owned by
Polimeri Europa SpA, Syndial SpA (former EniChem SpA) and
Raffineria di Gela SpA. In January 2005, the Court for
preliminary investigation, on the basis of the request of the
public prosecutor, resolved to close this proceeding against all
the defendants.</font></p>

<p><font size="2">Before the Court of Gela two criminal actions
took place, one in relation to the activity of the F3001 furnace
and the other concerning the ACN plant (disposal of FOK residue).
In both cases the accused were found guilty. For the proceeding
concerning the F3001 furnace the sentence was passed to the civil
court for the quantification of the damage to be paid to the
Caltanissetta Province. Eni appealed the Court&#146;s decision.</font></p>

<p style="page-break-before:always"><font size="2"><i>Syndial SpA
(former EniChem SpA)</i></font></p>

<p><font size="2">In 1992, the Ministry of Environment summoned
EniChem SpA and Montecatini SpA before the Court of Brescia. The
Ministry requested, primarily, to require environmental
remediation for the alleged pollution caused by the Mantova plant
from 1976 until 1990, and provisionally, in case there was no
possibility to remediate, require them to pay environmental
damages. The amount is going to be determined during the
proceeding, but it will not be lower than euro 136 million, or
determined by the judge as compensatory liquidation. EniChem
acquired the Mantova plant in June 1989, as part of the Enimont
deal. Edison SpA must hold Eni harmless or pay compensatory
damage for any damage caused to third parties by plant operations
before Montedison&#146;s sale, even if the damage occurred later.</font></p>

<p><font 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. 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 on behalf of the Ministry of
Environment and the Council of Ministers, 5 public entities, 12
associations and other entities and 48 individual persons. On
December 15, 2004 the Venice Court of Appeals confirmed the
preceding judgment, changing only some marginal parts. As
concerns some defendants of Eni and Syndial, the Court of Appeals
decided not to proceed due to the statute of limitations for some
crimes, while it confirmed the preceding judgment for the other
matters. All plaintiffs appealed this decision before the court
of final instance. Eni recorded a provision to the risk reserve
for this legal proceeding. </font></p>

<p><font 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, some
of which were managed by EniChem from 1983 to 1993. At the end of
the preliminary investigation phase, 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. The relevant hearing is set for
September 23, 2005. </font></p>

<p><font 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 compensation for environmental damages,
not quantified, caused to the lagoon of Venice by the Porto
Marghera plants, which were already the subject of two previous
proceedings against employees and managers. In a related action,
European Vinyls Corporation Italia presented an action for
recourse against EniChem and Ambiente. The requests for damage of
the Province of Venice and that of EVC Italia to EniChem and
Ambiente have not been quantified. In 2004, the proceedings
continued with both parties presenting memoranda; the next
hearing is set on December 9, 2005.</font></p>

<p><font 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
management relating to the production, disposal and treatment of
liquid and solid waste materials and of obtaining illicit income.
Polimeri Europa and EniChem, as injured parties, named their
defense attorneys. The collection of evidence effected before the
hearing starts in Court has been concluded and preliminary
investigations have ended with the confirmation of accusations.</font></p>

<p><font size="2">Press reports have suggested that the Public
Prosecutor of Siracusa has started preliminary investigations on
alleged malformations related to the ingestion of mercury
contaminated sea food.</font></p>

<p><font 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 about euro 129
million and to financial and non-financial damages for euro 250
million (plus interest and compensation) allegedly caused by
Pertusola Sud SpA (merged into 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 remediation works already underway. The
relevant hearing is set on July 5, 2005 in order to allow parties
to submit memoranda. The Province of Crotone entered the
proceeding, claiming environmental damages for euro 300 million.
Syndial was notified on October 21, 2004 of the request of the
Calabria Region to appear before the Court of Milan in order to
obtain a preliminary damage payment, in anticipation of the
expiration of the special office for managing emergency events in
Calabria. The Region requested payments for over euro 800
million. The first hearing is set on July 5, 2005.</font></p>

<p><font size="2">In March 2004, Sitindustrie SpA, which in 1996
purchased a plant in Paderno Dugnano from Enirisorse (now merged
into Syndial SpA), summoned Syndial SpA before the Court of
Milan, requesting to establish the responsibility of Syndial SpA
in the alleged pollution of soils around the plant and to require
it to pay environmental damages necessary for remediation.
Syndial opposed the claim based on an absence of the right of
action of the plaintiff. The judge has not yet decided on
Syndial&#146;s opposition.</font></p>

<p><font size="2">In October 2004, Sitindustrie SpA started an
analogous proceeding against Syndial concerning the plant for the
manufacture of products in copper and copper alloy at Pieve
Vergonte. The relevant hearing is set on November 10, 2005;
parties are allowed to submit memoranda prior to the hearing.</font></p>

<p><font size="2">In May 2003 the Minister of the 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 the Pieve
Vergonte plant. On September 23, 2004 the judge summoned the
parties and defined the date for the submission of memoranda. At
the hearing of March 25, 2005 the judge acquired the memoranda of
both parties; the decision is still pending.</font></p>

<p><font size="2">The municipality of Carrara started an action
at the Court of Genova requesting to Syndial SpA the remediation
and reestablishment of the previous environmental conditions at
the Avenza site and the payment of environmental damage. This
request is related to an accident occurred in 1984, as a
consequence of which EniChem Agricoltura SpA (later merged into
Syndial SpA), at the time owner of the site, had carried out
safety and remediation works. The Ministry of the Environment
joined the action and requested the environmental damage payment
&#150; from a minimum of euro 53.5 million to a maximum of euro
78.5 million &#150; to be broken down among the various companies
that managed the plant in the past. Previous managers include
Syndial, called into the action as a guarantor, Rumianca SpA, Sir
Finanziaria SpA and Sogemo SpA. A technical survey requested by
the Court is underway in order to ascertain the actual
environmental damage to the site.</font></p>

<p><font size="2"><b>Tax Proceedings</b></font></p>

<p><font size="2"><i>Eni SpA</i></font></p>

<p><font size="2">With a decree dated December 6, 2000 the
Lombardia Region decided that natural gas used for electricity
generation is subject to an additional regional excise tax in
relation to which Snam SpA (merged into Eni SpA in 2002) will
substitute for 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 from 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 No. 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>

<p><font 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 Eni&#146;s Taranto refinery in 2000, 2001 and 2002 to Eni SpA,
as the successor entity of AgipPetroli SpA following its merger
into Eni. The notification regards about 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 ordinary customs tariffs allow exemption.
The formal assessment does not contain the determination of any
administrative penalties provided for 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. 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. With a
decision of November 26, 2004 the Regional Director accepted
Eni&#146;s appeal and ended the litigation by cancelling the 147
formal assessments.</font></p>

<p><font size="2">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
offense 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 about euro 26
million. For the offense 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, that was concluded
in favor of Eni by the Regional Director.</font></p>

<p><font size="2"><i>Agip Karachaganak BV</i></font></p>

<p><font size="2">In July 2004 relevant Kazakh authorities
informed Agip Karachaganak BV and Agip Karachaganak Petroleum
Operating BV, shareholder and operator of the Karachaganak
contract, respectively, the final outcome of the tax audits
performed for fiscal years 2000 to 2003. Claims by the Kazakh
authorities concern unpaid taxes for a total of dollar 43
million, net to Eni, and the anticipated offsetting of VAT
credits for dollar 140 million, net to Eni, as well as the
payment of interest and penalties for a total of dollar 128
million. Both companies filed a counterclaim. With an agreement
reached on November 18, 2004, the original amounts were reduced
to dollar 22 million net to Eni; meetings are underway for
finding an agreement on residual matters. Eni recorded a
provision to the risk reserve for this matter.</font></p>

<p><font size="2"><i>Snam Rete Gas SpA</i></font></p>

<p><font size="2">With Regional Law No. 2 of March 26, 2002, the
Sicilia Region introduced an environmental tax upon the owners of
primary pipelines in Sicily (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 for Electricity and Gas 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 the above 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&#146; 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 such
countries and a distortion in access and competition rules. The
Commission initially requested the Italian Government to present
its observations about the argument and later with its opinion
presented on July 7, 2004 it formally requested Italy to cancel
the tax. The Italian Government must conform within two months
from the reception of the opinion. As it did not conform, on
December 20, 2004 the European Commission passed the case to the
Court of Justice requesting a ruling. 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 installment. On April 2, 2004 the Sicilia Region
presented recourse to the Regional Tax Commission at Palermo,
which, on January 5, 2005 rejected this appeal and confirmed the
illegitimacy of the tax, condemning the Region to repay the
amounts paid and interest accrued to Snam Rete Gas. On April 15,
2005 the Sicilia Region presented recourse to the Regional Tax
Commission at Palermo. On November 3, 2003, the Sicilia Region,
following the procedure presented by Snam Rete Gas concerning the
yearly liquidation of the tax for 2002, requested liquidation of
tax, fines and interest (euro 14.2 million) relating to the
unpaid December 2002 installment. On December 30, 2003 Snam Rete
Gas filed a claim with request of suspension of payment as a
result of the liquidation notice received from the Sicilia Region
with the Provincial Tax Commission of Palermo, that, on June 25,
2004 accepted Snam Rete Gas&#146;s claim and decided the
cancellation of the liquidation notice served by the Sicilia
Region. On September 13, 2004 the Sicilia Region appealed this
decision with the Regional Tax Commission at Palermo, which, on
March 7, 2005 rejected this appeal and confirmed the illegitimacy
of the tax. In any case Snam Rete Gas will not have to pay the
tax: if the tax is considered illegitimate in other Courts of
law, the company will have the right to the restitution of the
money. If, to the contrary, the tax is considered legitimate by
the other Courts, the Authority for Electricity and Gas will
include the tax (Decision No. 146/2002 and No. 71/2003) in tariff
with automatic and retroactive effects.</font></p>

<p><font size="2"><b>Other judicial or arbitration proceedings</b></font></p>

<p><font size="2"><i>Syndial SpA (former EniChem SpA) -
Serfactoring SpA</i></font></p>

<p><font size="2">In 1991, Agrifactoring SpA commenced
proceedings against Serfactoring SpA, a company 49% owned by
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), and Terni Industrie Chimiche SpA (merged into
Agricoltura SpA (in liquidation), that has been merged into
EniChem SpA (now Syndial SpA)). Such receivables were transferred
by Agricoltura and Terni Industrie Chimiche to Serfactoring,
which appointed Agrifactoring as its agent to collect payments.
Agrifactoring guaranteed to pay the amount of such receivables to
Serfactoring, regardless of whether or not it received payment 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 46 million following partial
payment of the original receivables by the liquidator of
Federconsorzi and various setoffs. These proceedings, which have
all been joined, were decided with a partial judgment, deposited
on February 24, 2004: the request of Agrifactoring has been
rejected and the company has been ordered to pay the sum
requested by Serfactoring and damages in favor of Agricoltura, to
be determined following the decision. Agrifactoring appealed
against this partial decision, requesting in particular the
annulment of the first step judgement, the reimbursment of the
euro 180 million amount from Serfactoring along with the
rejection of all its claims and the payment of all expense of the
proceeding. The appeal pending will be discussed in a hearing set
for March 16, 2007. The judge of the Court of Rome, responsible
for the determination of the amount of damages to be paid to
Serfactoring and Agricoltura decided on May 18, 2005 to suspend
this determination until the publication of the decision of the
Court of Appeals, in accordance with Article 295 of the Code of
civil procedure.</font></p>

<p><font size="2"><i>Syndial SpA (former EniChem SpA)</i></font></p>

<p><font size="2">In 2002, EniChem SpA 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 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. During 2004 the preliminary inquiry was
completed. Conclusions were filed by the parties on the relevant
hearing of May 26, 2005. The procedure is due for a decision.</font></p>

<p><font size="2"><i>Snamprogetti SpA</i></font></p>

<p><font size="2">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. In December 2004,
Fertinitro and Snamprogetti reached an agreement that provides
for: (i) the acceptance of the plant in Jose, Venezuela, and in
return, the Stand-by Letter of Credit it provided to Fertinitro;
(ii) the recovery of the Stand-By Letter of Credit; (iii) a
settlement between the parties for the payables related to the
awarding of licenses from Snamprogetti and a dollar 6.5 million
compensation to be paid to Fertinitro; and (iv) the decision of
both parties to supersede all requests/claims made to the
arbitration court. In December 2004 Snamprogetti executed the
agreement.</font></p>

<p><font size="2"><b>Antitrust, EU Proceedings, actions of the
Authority for Electricity and Gas and of other regulatory
Authorities</b></font></p>

<p><font size="2"><i>Eni SpA</i></font></p>

<p><font size="2">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 primary
distribution of natural gas relating to the transportation and
distribution tariffs applied to third parties and the access of
third parties to infrastructure; (ii) fined Snam 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 requesting its suspension. 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 decision on this dispute is still pending.</font></p>

<p><font size="2">With a decision of December 9, 2004, the
Italian Antitrust Authority started an inquiry on the
distribution of jet fuel against six Italian companies, including
Eni and some of its subsidiaries, that store and load jet fuel in
the Rome Fiumicino, Milan Linate and Milan Malpensa airports. The
inquiry intends to ascertain the existence of alleged limitations
to competition as oil companies would agree to divide among
themselves the supplies to airlines. The date set for the closing
of the inquiry March 31, 2006.</font></p>

<p><font size="2">Detailed information on the investigations by
the Antitrust Authority (BluGas, closed in October 2004 and TTPC,
started in February 2005) is included in the &quot;Operating
Review &#150; Gas &amp; Power segment &#150; Regulatory
Framework&quot;, which is considered an integral part of these
Notes.</font></p>

<p><font size="2"><i>GNL Italia SpA</i></font></p>

<p><font size="2">With Decision No. 16/2004 published on February
16, 2004, the Italian Authority for Electricity and Gas initiated
a formal investigation of GNL Italia SpA concerning the refusal
to Gas Natural Vendita Italia SpA to access on an annual basis
the regasification service at Eni&#146;s Panigaglia terminal for
volumes amounting to about 220 million cubic meters of natural
gas.</font></p>

<p><font size="2">On November 19, 2003 GNL Italia informed the
Authority for Electricity and Gas, in accordance with Article 24
paragraph 3 of Legislative Decree No. 164/2000, of the request
for regasification services on a continuous basis from Gas
Natural Vendita Italia for about 220 million cubic meters of
natural gas. GNL Italia offered only spot capacity as the whole
regasification capacity had been conferred to Eni SpA under a
contract signed on January 29, 2002 and filed with the same
Authority for Electricity and Gas, and approved with Decision No.
38/2002. With Decision No. 120 of July 22, 2004 the Authority for
Electricity and Gas ordered GNL Italia to provide continuous
capacity to Gas Natural Vendita and initiated a formal
investigation aimed at requesting a fine under Article 2,
paragraph 20, letter c of Law No. 481/1995 in violation of
Articles 14 and 15 of Decisions No. 120/2001 and 38/2002 of the
Authority for Electricity and Gas. In order to execute the
requirements of Decision No. 120/2004, GNL Italia: (i) obtained
by Eni a change in its contract planning of discharges of ships
in order to allow Gas Natural Vendita Italia to access the
regasification services in August and September with one
discharge a month; (ii) assigned capacity to Gas Natural Vendita
Italia and entered a regasification contract with Gas Natural
Vendita Italia that provide for a discharge per month in the
months of August and September 2004. On November 19, 2004 Eni
filed a claim against this decision with the Regional
Administrative Court of Lombardia. This claim, concerning in
particular the Authority for Electricity and Gas&#146;s decisions
on access to regasification services at the Panigaglia terminal
is still pending. With decision No. 2 of January 12, 2005 the
Authority for Electricity and Gas fined GNL Italia euro 50,000
that the company paid on February 21, 2005.</font></p>

<p><font size="2"><i>Polimeri Europa SpA and Syndial SpA</i></font></p>

<p><font size="2">In December 2002, inquiries were commenced
concerning alleged anti-competitive agreements in the area of
elastomers. These inquiries were commenced concurrently by
European and U.S. authorities. The first product under scrutiny
was EP(D)M: the European Commission submitted to inspection the
manufacturing companies of that product, among which Polimeri
Europa SpA and Syndial and requested information to those two
companies and to their controlling company, Eni SpA. After the
inquiries the Commission decided to open a procedure for
violation of competition laws and notified Eni, Polimeri Europa
and Syndial to that effect on March 8, 2005. Syndial filed
memoranda. EP(D)M manufacture is also under scrutiny in the
United States, where the Department of Justice of San Francisco
requested information and documents to Polimeri Europa Americas
Inc, a U.S. subsidiary of Polimeri Europa and to its deputy
chairman and sales manager. Class actions were filed claiming
damages in relation to the alleged violation. The investigation
was also extended to the following products: NBR, CR, BR, SSBR
and SBR. The European Commission started an investigation
regarding BR, SBR, SSBR. On January 26, 2005 the Commission
dropped the charges in relation to SSBR, while for the other
products the Commission started an infraction procedure. NBR and
CR are under scrutiny in Europe and the USA, where class actions
have been started. With regard to CR, Syndial entered into a plea
agreement with the Department of Justice pursuant to which
Syndial would agree to pay a fine of US dollar 9 million, while
the Department of Justice would agree that it will not bring
further criminal charges against Syndial or against its affiliate
companies. A court hearing has been scheduled for June 27, 2005
for the approval of the plea agreement and sentencing. Eni
recorded a provision for this matter. The European Commission
requested Eni, Polimeri Europa and Syndial to provide information
about CR.</font></p>

<p><font size="2"><i>Stoccaggi Gas Italia SpA</i></font></p>

<p><font 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 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 for
Electricity and Gas repealed Stogit&#146;s proposal and defined
tariffs for the first regulated period. Stogit applied the tariff
determined by the two decisions, but filed an appeal against both
Authority for Electricity and Gas 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 filed an
appeal to the Council of State against the sentence of first
instance.</font></p>

<p><font size="2"><i>Distribuidora de Gas Cuyana SA</i></font></p>

<p><font size="2">The agency entrusted with the regulations for
the natural gas market in Argentina (&quot;Enargas&quot;) started
a formal investigation on some operators, among these
Distribuidora de Gas Cuyana SA, a company controlled by Eni.
Enargas stated that the company has applied improperly calculated
conversion factors to volumes of natural gas invoiced to
customers and requested the company to apply the conversion
factors imposed by local regulations from the date of the default
notification (March 31, 2004) without prejudice to any damage
payment and fines that may be decided after closing the
investigation. On April 27, 2004, Distribuidora de Gas Cuyana
presented a defense memorandum to Enargas, without prejudice to
any possible appeal. At this date it is not possible to quantify
any negative effects deriving from this action, given its very
early phase.</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>Other commitments and risks not included in the balance
sheet</b></p>

<p><font size="2">Commitments regarding long-term natural gas
supply contracts stipulated by Eni, which contain take or pay
clauses, are described in &quot;Item 4 &#150; Information on the
Company &#150; Gas &amp; Power&quot;. 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><font size="2"><b>Environmental Regulations</b></font></p>

<p><font size="2">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, petrochemical 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 of the Ministry of Environment published in January 8,
2004, that regards the fixing of new quality standards for
aquatic environment and dangerous substances and the legislative
decree on integrated environmental authorization already approved
by Parliament, but not yet published on the Official Gazette, as
well as the effects that may derive from the legislative decree
yet to be issued for implementing Directive 2000/60/CE which
establishes a European framework on waters and of the legislative
decrees that shall be issued in order to implement: a) Law No.
308 of December 15, 2004 which delegated to the Government the
reorganization of all regulations concerning waste management and
remediation of polluted sites, protection of water bodies from
pollution and management of water resources, indemnities for
environmental damage, procedures for the environmental impact
evaluation and strategic environmental evaluation, as well as
protection of air and reduction of emissions into the atmosphere;
b) a law approved by the Chamber of Deputies and currently being
examined by the Senate which implements Directive 2003/87/CE on
emission trading in Europe and Directive 2004/35/CE on
environmental responsibility in terms of prevention and
remediation of environmental damage; (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>

<p>&nbsp;</p>

<p style="page-break-before:always"><b>24 Segment information</b></p>

<p><font size="2">Segment information is presented in accordance
with the revised IAS 14. Intersegment sales are conducted on an
arm&#146;s length basis.</font></p>

<p><font size="2"><b>Information by industry segment</b></font></p>

<p><font size="2">Following the merger of EniData SpA into Eni
SpA, segment information related to this company for the years
2002 and 2003 were moved from &quot;Other activities&quot; to the
segment &quot;Corporate and financial companies&quot; in which
ICT activities have been concentrated.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="26%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Exploration &amp; Production</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Gas &amp; Power</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Refining &amp; Marketing</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="center"><font
        size="1"><b>Petrochemicals</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Oilfield Services Construction and
        Engineering</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Other activities</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Corporate and financial companies</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" bgcolor="#FFFFFF"><hr size="1"
        noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1"><b>2002</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Net sales from operations <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">12,877</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">15,297</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">21,546</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,516</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,546</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,449</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">586</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Less: intersegment sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(8,795</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(623</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,037</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(746</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(479</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(748</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(467</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Net sales to customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,082</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">14,674</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">20,509</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">3,770</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,067</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">701</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">119</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">47,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Operating income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,175</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,244</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">321</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(126</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">298</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(214</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(196</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,502</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Identifiable assets <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">23,686</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">12,482</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">7,634</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,821</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,026</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">901</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">327</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">52,877</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Unallocated assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12,931</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Identifiable liabilities <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,764</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,969</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,861</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">631</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,741</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,221</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">887</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">17,074</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Unallocated liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20,383</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Capital expenditure</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,615</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,315</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">550</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">145</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">233</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">119</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">8,048</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Depreciation, amortization and writedowns</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,884</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(512</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(494</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(231</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(267</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(5,504</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Interest income</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">38</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">138</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">322</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Interest expense</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(185</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(26</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(568</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1"><b>2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Net sales from operations <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12,746</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16,067</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22,148</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,487</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,306</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,178</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">700</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Less: intersegment sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(8,468</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(450</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(621</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(438</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(897</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(733</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(538</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Net sales to customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,278</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">15,617</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">21,527</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,049</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,409</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">445</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">162</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">51,487 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Operating income</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,746</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">3,627</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">583</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(176</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">311</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(293</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(281</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">9,517 </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Identifiable assets <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23,433</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">15,824</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,025</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,523</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,361</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">856</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">614</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">56,636</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Unallocated assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">10,700</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Identifiable liabilities <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,629</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,007</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,835</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">612</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,463</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,139</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">984</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17,669</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Unallocated liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">21,349</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Capital expenditure</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,681</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,760</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">730</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">141</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">278</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">142</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,802</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Depreciation, amortization and writedowns</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(3,360</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(567</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(494</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(248</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(271</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(5,151</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Interest income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">110</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">197</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Interest expense</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(141</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(374</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(574</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1"><b>2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Net sales from operations <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">15,349</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">17,258</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">26,094</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,417</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">6,494</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,279</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">851</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Less: intersegment sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10,231</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(450</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(759</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(499</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(888</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(800</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(733</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Net sales to customers</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">16,808</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">25,335</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,918</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,606</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">479</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">58,382</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Operating income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,017</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,463</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">965</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">271</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">260</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(244</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(269</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12,463</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Identifiable assets <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">23,348</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">16,998</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">8,330</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,799</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5,191</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">709</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,166</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">58,541</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Unallocated assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10,571</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Identifiable liabilities <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,406</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">3,121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">3,175</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">630</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">3,174</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2,073</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,615</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">18,194</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Unallocated liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18,452</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Capital expenditure</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">4,912</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1,446</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">669</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">99</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">209</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">48</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">120</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">7,503</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Depreciation, amortization and writedowns</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,286</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(579</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(469</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(109</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(251</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,861</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#FFFFFF"><font
        size="1">Interest income</font></td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">144</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">201</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="26%" bgcolor="#EEEEEE"><font
        size="1">Interest expense</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(403</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(575</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="26%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">__________________</font></p>

<p><font size="1">(a) Before elimination of intersegment sales.<br>
(b) Includes assets directly related to the generation of
operating income.<br>
(c) Includes liabilities directly related to the generation of
operating income.<br>
</font></p>

<p style="page-break-before:always"><font size="2"><b>Geographic
financial information</b></font></p>

<p><font size="2"><i>Assets and Investments by geographic area of
origin</i></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="32%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Other EU</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Rest of Europe</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Americas</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Asia</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Other areas</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%" bgcolor="#EEEEEE"><font
        size="1"><b>2002</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="32%"><font size="1">Identifiable
        assets <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">24,524</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7,150</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3,519</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">9,122</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3,432</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">4,385</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">745</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">52,877</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%" bgcolor="#EEEEEE"><font
        size="1">Investments in fixed and intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,396</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">567</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">284</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,497</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">721</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,333</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">250</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,048</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%"><font size="1"><b>2003</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="32%" bgcolor="#EEEEEE"><font
        size="1">Identifiable assets <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27,355</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7,229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,466</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10,509</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,921</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,801</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">355</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">56,636</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%"><font size="1">Investments
        in fixed and intangible assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,708</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,067</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">302</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3,026</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">369</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">795</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">535</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8,802</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%" bgcolor="#EEEEEE"><font
        size="1"><b>2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="32%"><font size="1">Identifiable
        assets <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">28,578</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8,540</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,843</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">10,927</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,288</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">5,086</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">279</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">58,541</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%" bgcolor="#EEEEEE"><font
        size="1">Investments in fixed and intangible assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,613</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">370</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">387</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,626</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">356</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,073</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">78</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7,503</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="32%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(a) Includes assets directly related to the
generation of operating income.</font></p>

<p><font size="2">Geographic information relating to 2002 and
2003 was reorganized due to the entry into the European Union of
10 new States. In particular, euro 344 million and euro 539
million, respectively, relating to &quot;Identifiable
assets&quot; and euro 21 million and euro 32 million,
respectively, relating to &quot;Investments in tangible and
intangible assets&quot;, were moved from &quot;Rest of
Europe&quot; into &quot;Other European Union&quot;.</font></p>

<p><font size="2"><i>Sales from operations by geographic area of
destination</i></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="55%"><font size="1">(%)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Italy</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23,797</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">25,491</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27,096</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Other
        European Union</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8,974</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">10,785</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">13,469</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Americas</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,317</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,778</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,790</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Africa</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">2,478</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">5,854</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">4,105</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Rest of Europe</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,188</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,303</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,743</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%"><font size="1">Asia</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,154</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,245</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">3,631</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%" bgcolor="#EEEEEE"><font
        size="1">Other areas</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">548</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>47,922</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>51,487</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>58,382</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="55%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Sales from operations by geographic area of
destination relating to 2002 and 2003 were reorganized due to the
entry into the European Union of 10 new States. In particular,
euro 524 million and euro 790 million, respectively, were moved
from &quot;Rest of Europe&quot; into &quot;Other European
Union&quot;</font></p>

<p>&nbsp;</p>

<p><b>25 Fair value of financial instruments</b></p>

<p><font 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></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">Marketable
        securities: the fair values of marketable securities are
        based upon market value.</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">Current
        investments: such investments are publicly traded and
        their fair value is represented by their market price.</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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, 2003 and 2004,
        excluding tax credits with Italian tax authorities, were
        not significant. In relation to tax credits, the interest
        rate of 1.375% is aligned with the average market rate
        trend.</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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 based on
        discounted cash flow analyses.</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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, 2003 and
        2004 were not significant.</font></td>
    </tr>
</table>

<p style="page-break-before:always">&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Carrying Value</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Fair Value</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Carrying Value</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Fair Value</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Marketable securities and current investments</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,300</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,317</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,315</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,345</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Bonds and
        long-term debt, including current maturities <sup>(1)</sup></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8,826</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">9,099</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8,610</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8,824</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(1) The carrying value is increased by the fair
value of fixed interest rate financial debt acquired, recorded in
accrued expenses and deferred income, and decreased by implicit
interest recorded in accrued income and prepaid expenses.</font></p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><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></td>
    </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="27%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Carrying Value</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Fair Value</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Carrying Value</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1"><b>Fair Value</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Interest rate derivatives:</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#FFFFFF"><font
        size="1">- assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">- liabilities</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(117</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(135</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#FFFFFF"><font
        size="1">Foreign exchange derivatives:</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">- assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">175</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">289</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">277</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">344</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#FFFFFF"><font
        size="1">- liabilities</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(118</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
        <td valign="bottom" width="3%" bgcolor="#FFFFFF">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#FFFFFF"><p
        align="right"><font size="1">(46</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#FFFFFF"><font
        size="1">)</font></td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><b>26 Transactions with related parties</b></p>

<p><font size="2">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.</font></p>

<p><font size="2">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
on an arm&#146;s lenght basis in the interest of Eni companies.</font></p>

<p><font size="2">Relevant transactions carried out with entities
controlled by the Italian government are only those with Enel,
the Italian National Electric Company.</font></p>

<p><font size="2">The following is a description of trade and
financing transactions with related parties.</font></p>

<p style="page-break-before:always"><font size="2"><b>2004 Trade
and other transactions</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="31%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="36%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="31%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="36%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="31%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Costs</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Revenues</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="31%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Commitments</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Services</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Services</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Affiliated companies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Agip Oil
        Co Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">163</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Albacom SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Azienda
        Energia e Servizi Torino SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">68</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Bayernoil Raffineriegesellschaft mbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">791</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Bernhard
        Rosa Inh. Ingeborg Plochinger GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Blue Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Bronberger
        &amp; Kessler Handelsgesellschaft U. Gilg &amp; Schweiger
        GmbH &amp; Co Kg</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">141</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Erg Raffinerie Mediterranee Srl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">100</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,043</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">412</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Gruppo
        Distribuzione Petroli Srl</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">45</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Karachaganak Petroleum Operating BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">42</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Petrobel
        Belayim Petroleum Co</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">240</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Promgas SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">230</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">259</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Raffineria
        di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">245</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">62</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Supermetanol CA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">24</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Superoctanos
        CA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">212</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Trans Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">167</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Trans
        Europa Naturgas Pipeline GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Transitgas AG</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Uni&#243;n
        Fenosa Gas SA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">111</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">85</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">105</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>262</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>571</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>209</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,580</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,050</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,133</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>88</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Non consolidated subsidiaries</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Eni BTC
        Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">143</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Eni Gas BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Eni Middle
        East BV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">367</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Transmediterranean Pipeline Co Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">20</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>63</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>45</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>537</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>117</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>21</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>325</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>616</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>746</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,585</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,167</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,135</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>109</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Entities owned or controlled by the
        Government</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Enel</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">234</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,287</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">350</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>559</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>619</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>746</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,587</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,187</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,422</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>459</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p><font 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 29 million and 28 million in 2003 and 2004,
respectively.</font></p>

<p style="page-break-before:always"><font size="2">Most
significant transactions concern:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">specialized
        services in upstream activities to Agip Oil Co Ltd, Eni
        Gas BV, Karachaganak Petroleum Operating BV, Petrobel
        Belayim Petroleum Co; services are invoiced on the basis
        of incurred costs; exclusively 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 and with Karachaganak
        Petroleum Operating BV, the providing of services by
        Eni&#146;s construction and drilling activity;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">communication
        services, data transmission and concessions of optical
        fibers with Albacom SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">transportation
        and distribution activities with Azienda Energia e
        Servizi Torino SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">sale of
        petrochemical products, supply of crude oil, refining
        activities and fuel additive purchase from Bayernoil
        Raffineriegesellschaft GmbH, Bernhard Rosa Inh. Ingeborg
        Plochinger GmbH, Bronberger &amp; Kessler
        Handelsgesellschaft U. Gilg &amp; Schweiger GmbH Co Kg,
        Gruppo Distribuzione Petroli Srl, Supermetanol CA and
        Superoctanos CA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">acquisition
        of natural gas transport services outside Italy from Blue
        Stream Pipeline Co BV, Trans Europa Naturgas Pipeline
        GmbH and Transmediterranean Pipeline Co Ltd and only with
        Blue Stream Pipeline Co BV the providing of services by
        Eni&#146;s construction and drilling activity;
        transactions related to the acquisition of natural gas
        transport services are regulated on the basis of tariffs,
        which permit the recovery of operating expenses and
        capital employed; transactions related to the providing
        of services by Eni&#146;s construction and drilling
        activities are regulated on the basis of compensation
        calculated following the same criteria used in third
        party transactions;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">acquisition
        of refining services from Erg Raffinerie Mediterranee Srl
        and Raffineria di Milazzo ScpA on the basis of general
        conditions applied to third parties for Erg Raffinerie
        Mediterranee Srl and of incurred costs for Raffineria di
        Milazzo ScpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">sale and
        acquisition of natural gas outside Italy with Promgas
        SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">acquisition
        of natural gas transport services outside Italy from
        Trans Austria Gasleitung GmbH and Transitgas AG,
        transactions are regulated on the basis of general
        conditions applied to third parties;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">guarantees
        given in relation to the construction of an oil pipeline
        on behalf of Eni BTC Ltd;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">guarantees
        given to Eni Middle East BV against contractual
        commitments with the Government of the Kingdom of Saudi
        Arabia.</font></td>
    </tr>
</table>

<p><font size="2">Transactions with Enel concern the sale and
transportation of natural gas, sale of fuel oil and sale and
purchase of electricity.</font></p>

<p><font size="2"><b>2004 Financing transactions</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><p align="center"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Charges</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Gains</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>Affiliated companies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Albacom
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">88</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Blue Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">768</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">29</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">EnBW - Eni
        Verwaltungsgesellschaft mbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">250</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Planta de regassificaci&#242;n de Sagunto SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Raffineria
        di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">107</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Spanish Egyptian Gas Co SAE</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">404</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">389</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>463</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>92</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,737</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>6</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>55</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>Non consolidated subsidiaries</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Transmediterranean
        Pipeline Co Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">197</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">68</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">54</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>265</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>54</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>4</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>11</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>728</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>146</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,739</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>10</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>66</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p>&nbsp;</p>

<p><font size="2">Most significant transactions concern:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">lendings and
        guarantees to Albacom SpA and Serfactoring SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">bank debt
        guarantees to Blue Stream Pipeline Co BV, EnBW - Eni
        Verwaltungsgesellschaft mbH, Planta de Regasificaci&#242;n de
        Sagunto SA, Raffineria di Milazzo ScpA and Spanish
        Egyptian Gas Co SAE;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
</table>

<p><font size="2">During the year, business transactions have
occured between Eni and unconsolidated subsidiaries and
affiliates for non significant amounts.</font></p>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><b>2003 Trade
and other transactions</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="31%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="36%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="31%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="36%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="31%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="16%"><p align="center"><font
        size="1"><b>Costs</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Revenues</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="16%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="31%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Commitments</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Services</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Services</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Affiliated companies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Agip Oil
        Co Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">61</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Albacom SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Azienda
        Energia e Servizi SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">74</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Bayernoil Raffineriegesellschaft mbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">713</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Bernhard
        Rosa Inh. Ingeborg Plochinger GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">41</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">96</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Blue Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">51</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">43</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Bronberger
        &amp; Kessler Handelsgesellschaft U. Gilg &amp; Schweiger
        GmbH &amp; Co Kg</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">67</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">135</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Erg Raffinerie Mediterranee Srl</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">28</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">100</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">567</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">210</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Gruppo
        Distribuzione Petroli Srl</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">73</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Karachaganak Petroleum Operating BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">46</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">183</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Petrobel
        Belayim Petroleum Co</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">78</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">138</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Promgas SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">230</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">250</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Raffineria
        di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">161</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">58</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Serfactoring SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">128</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Supermetanol
        CA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Superoctanos CA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">142</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">171</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Trans Europa Naturgas Pipeline GmbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">38</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Transitgas
        AG</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Uni&#243;n Fenosa Gas SA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">36</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">44</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">117</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">63</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">18</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>245</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>550</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>221</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,018</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,846</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>887</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>255</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1"><b>Non
        consolidated subsidiaries</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Eni BTC Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">120</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Eni Gas BV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">191</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">160</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Transmediterranean Pipeline Co Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">30</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>128</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>239</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>302</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>149</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>30</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>373</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>789</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>523</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,022</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,995</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>895</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>285</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Entities owned or controlled by the
        Government</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Enel</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">261</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">31</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,465</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">341</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>634</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>791</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>523</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,022</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,026</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,360</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>626</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="31%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p><font 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.</font></p>

<p style="page-break-before:always"><font size="2">Most
significant transactions concern:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">communication
        services, data transmission and concessions of optical
        fibers with Albacom SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">transportation
        and distribution activities with Azienda Energia e
        Servizi SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">sale and
        purchase of natural gas outside Italy with Promgas SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">factoring
        activities with Serfactoring SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">guarantees
        given in relation to the construction of an oil pipeline
        on behalf of Eni BTC Ltd;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
</table>

<p><font size="2">Transactions with Enel concern the sale and
transportation of natural gas, sale of fuel oil and sale and
purchase of electricity.</font></p>

<p>&nbsp;</p>

<p><font size="2"><b>2003 Financing transactions</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><p align="center"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Charges</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Gains</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>Affiliated companies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Albacom
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">54</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">88</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Blue Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">725</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">26</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">EnBW - Eni
        Verwaltungsgesellschaft mbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">275</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Raffineria di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">113</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Serfactoring
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Trans Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">399</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>553</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>69</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,305</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>16</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>51</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1"><b>Non
        consolidated subsidiaries</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Transmediterranean Pipeline Co Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">241</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">90</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>331</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>65</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>18</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>13</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>884</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>134</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,312</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>34</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>64</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p><font size="2">Most significant transactions concern:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">lendings and
        guarantees to Albacom SpA and Serfactoring SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">bank debt
        guarantees to Blue Stream Pipeline Co BV, EnBW - Eni
        Verwaltungsgesellschaft mbH and Raffineria di Milazzo
        ScpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
</table>

<p><font size="2">During the year, business transactions have
occured between Eni and unconsolidated subsidiaries and
affiliates for non significant amounts.</font></p>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><b>2002 Trade
and other transactions</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="42%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><p align="center"><font
        size="1"><b>Dec. 31, 2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="31%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="25%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="31%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Costs</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>Revenues</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="68%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="42%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Services</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Goods</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>Services</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1"><b>Affiliated companies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Bayernoil
        Raffineriegesellschaft mbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">28</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">652</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Promgas SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">25</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">212</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">227</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Erg
        Raffinerie Mediterranee Srl</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">27</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">30</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">137</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">69</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Petrobel Belayim Petroleum Co</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">164</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Raffineria
        di Milazzo ScpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">159</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Superoctanos CA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">181</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">176</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Bronberger &amp; Kessler Handelsgesellschaft U.
        Gilg &amp; Schweiger GmbH &amp; Co Kg</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">117</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Albacom
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">53</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Serfactoring SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">94</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Bernhard
        Rosa Inh. Ingeborg Plochinger GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">35</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Azienda Energia e Servizi SpA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Gruppo
        Distribuzione Petroli Srl</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Karachaganak Petroleum Operating BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">214</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Transitgas
        AG</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">56</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Trans Europa Naturgas Pipeline GmbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Blue
        Stream Pipeline Company BV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">50</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">489</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Agip Oil Co Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">67</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">147</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">55</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">57</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">105</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>269</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>441</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>147</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>464</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,782</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>727</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>728</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1"><b>Non
        consolidated subsidiaries</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">AgipGas BV</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">94</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">412</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Agip (Btc)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">206</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1">Transmediterranean Pipeline Co Ltd</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">122</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">26</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">35</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">32</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>45</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>113</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>657</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>160</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>32</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>314</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>554</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>804</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>471</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,942</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>735</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>760</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE"><font
        size="1"><b>Entities owned or controlled by the
        Government</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="42%"><font size="1">Enel</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">42</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">76</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,475</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">308</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>356</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>559</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>804</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>471</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,018</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,210</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,068</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="42%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p><font 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.</font></p>

<p style="page-break-before:always"><font size="2">The most
significant transactions related to:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">sale of
        natural gas outside Italy with Promgas SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">communication
        services, data transmission and concessions of optical
        fibers with Albacom SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">the
        construction of a pipeline between Turkey and the Russian
        Federation for Blue Stream Pipeline Co BV;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">factoring
        activities with Serfactoring SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">transportation
        and distribution activities with Azienda Energia e
        Servizi SpA;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">guarantees
        given in relation to the construction of an oil pipeline
        by Agip (Btc).</font></td>
    </tr>
</table>

<p><font size="2">Transactions with Enel concern the sale and
transportation of natural gas, sale of fuel oil and sale and
purchase of electricity.</font></p>

<p>&nbsp;</p>

<p><font size="2"><b>2002 Financing transactions</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><p align="center"><font
        size="1"><b>Dec. 31, 2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="29%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="19%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="50%"><font size="1"><b>Name</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Receivables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Payables</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Guarantees</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Charges</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Gains</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>Affiliated companies</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Blue
        Stream Pipeline Co BV</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">874</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">30</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Transitgas AG</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">655</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Trans
        Austria Gasleitung GmbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">448</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">15</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">EnBW - Eni Verwaltungsgesellschaft mbH</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">264</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Serfactoring
        SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">46</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Superoctanos CA</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">40</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Bayernoil
        Raffineriegesellschaft mbH</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">72</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">80</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,511</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>95</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,005</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>9</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>64</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1"><b>Non consolidated subsidiaries</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Transmediterranean
        Pipeline Co Ltd</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">326</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">95</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">18</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE"><font
        size="1">Agip (Btc)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">27</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="50%"><font size="1">Other <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">47</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">68</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>400</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>68</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>100</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>20</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,911</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>163</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,105</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>16</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>84</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="50%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(*) Each individual amount included herein does
not exceed euro 50 million.</font></p>

<p>&nbsp;</p>

<p><font size="2">The most significant transactions related to:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">guarantees
        provided to banks and related fees to Turkey, the
        financing of the doubling of the Italy/the 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></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">concessions
        of loans to EnBW - Eni Verwaltungsgesellschaft mbH for
        the acquisition of Gasversorgung S&#252;ddeutschland GmbH;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">concessions
        and guarantees provided to banks in relation to lendings
        to Serfactoring SpA, Bayernoil Raffineriegesellschaft
        mbH, Superoctanos CA and Agip (Btc).</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p style="page-break-before:always"><b>27 Summary of significant
differences between Italian accounting principles and U.S. GAAP</b></p>

<p><font size="2">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><font size="2"><b>A) Consolidation policy</b></font></p>

<p><font size="2">Eni&#146;s consolidation policy is described
under &quot;Principles of consolidation&quot; 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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">In addition, U.S. GAAP also requires an entity
who absorbs the majority of a variable interests entity&#146;s
(&quot;VIE&quot;) expected losses or, in the absence of this, the
majority of a VIE&#146;s expected residual returns (such an
entity being the &quot;Primary Beneficiary&quot;) to consolidate
the VIE. 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>

<p><font size="2"><b>B) Exploration &amp; Production activities</b></font></p>

<p><font size="2"><i>Exploration</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under U.S. GAAP, costs relating to exploratory
wells are initially capitalized as &quot;incomplete wells and
other&quot; until it is determined if commercial quantities of
reserves have been discovered (&quot;successful efforts
method&quot;). 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 if
the required capital expenditure is made, 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 not been 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 surveys, are expensed when incurred. See the
paragraph &quot;Suspended exploratory wells&quot; in Note No. 29
&quot;Additional Information&quot; for a discussion of FASB Staff
Position on Statement 19 (FSP FAS 19-1) of April 4, 2005.</font></p>

<p><font size="2"><i>Development</i></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under U.S. GAAP, costs of productive wells and
development dry holes, both tangible and intangible, are
capitalized and amortized with the unit-of-production method.</font></p>

<p><font size="2"><b>C) Valuation of assets and subsequent
revaluation</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under U.S. GAAP, SFAS 144 requires the
performance of the same analysis using undiscounted cash flows.</font></p>

<p><font size="2">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><font size="2"><b>D) Monetary revaluation of assets</b></font></p>

<p><font size="2">Under Italian GAAP, certain assets have been
revalued at various times in accordance with various Italian
laws.</font></p>

<p><font size="2">Under U.S. GAAP, such revaluations are not
permitted.</font></p>

<p><font size="2"><b>E) Deferred tax assets and liabilities</b></font></p>

<p><font size="2">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 basis of an asset acquired does not
result in the recording of an adjustment to the carrying value of
such asset.</font></p>

<p><font size="2">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 basis, deferred taxes must be
provided for such differences and recorded as part of the
acquisition.</font></p>

<p><font size="2">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><font size="2"><b>F) Depreciation of fixed assets</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under U.S. GAAP, depreciation expense is
recognized based on the estimated economic useful lives of the
assets.</font></p>

<p><font size="2">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><font size="2"><b>G) Intangible assets</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Identifiable intangible assets acquired as part
of a business combination with finite useful lives are amortized
by the straight line method over their useful lives.</font></p>

<p><font size="2">Under Italian GAAP, such intangible assets are
not recorded separately from goodwill.</font></p>

<p><font size="2"><b>H) Capitalized interest expense</b></font></p>

<p><font size="2">Under Italian GAAP, Eni capitalizes interest
expense only if certain conditions are met in the
self-construction of assets.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2"><b>I) Derivatives</b></font></p>

<p><font size="2">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 hedged 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.</font></p>

<p><font size="2">Under U.S. GAAP, SFAS 133 &quot;Accounting for
Derivative Instruments and Hedging Activities&quot; 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.</font></p>

<p><font size="2">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; 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><font size="2"><b>J) Stock compensation</b></font></p>

<p><font size="2">Under Italian GAAP, stock grant and option
plans issued and offered to employees for no consideration
beginning in 2003 by using treasury shares have been recorded as
compensation expense on the basis of the fair value and are
recognized under a pro rata mechanism during their vesting
period.</font></p>

<p><font size="2">The accounting method adopted under Italian
GAAP is consistent with the requirements of SFAS 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.</font></p>

<p><font size="2">Both under U.S. GAAP and Italian GAAP, the new
criteria have been applied prospectively in compliance with
Statement of Financial Accounting No. 148 &quot;Accounting for
Stock Based Compensation &#150; Transition and disclosure&quot;
(SFAS 148). Eni has applied the fair value method of grants made,
modified or settled on or after January 1, 2003.</font></p>

<p><font size="2">Prior to January 1, 2003, under Italian GAAP,
stock grant and option plans offered to employees for no
consideration were recorded when the shares were issued or sold.
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:
(i) 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, if the plan requires a capital increase; (ii) as a
decrease in treasury shares charging to income statement the
difference between the strike price and book value of sold
shares, if the plan requires the utilization of treasury shares.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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).</font></p>

<p><font size="2">Eni does not give stock compensation in
exchange of goods and services from non-employees.</font></p>

<p><font size="2"><b>K) Stock issuance costs</b></font></p>

<p><font size="2">Under Italian GAAP, direct costs for issuances
of equity are capitalized by Eni in the account &quot;Intangible
assets - organizational and financing costs&quot; and amortized
over their economic useful lives, not to exceed 5 years.</font></p>

<p><font size="2">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><font size="2"><b>L) Marketable securities</b></font></p>

<p><font size="2">Under Italian GAAP, marketable securities are
carried at the lower of purchase cost or market value.</font></p>

<p><font size="2">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><font size="2"><b>M) Costs related to site restoration and
abandonment</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Under U.S. 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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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><font size="2"><b>N) Treasury shares</b></font></p>

<p><font size="2">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. From 2003 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.</font></p>

<p><font size="2">Under U.S. GAAP, all treasury shares are
recorded at cost. Such difference did not generate differences
between U.S. GAAP and Italian GAAP in 2002 and 2004 and did not
generate significant differences between U.S. GAAP and Italian
GAAP in 2003.</font></p>

<p><font size="2"><b>O) Extraordinary income and expense</b></font></p>

<p><font size="2">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 style="page-break-before:always"><font size="2"><b>P) Sales of
government bonds</b></font></p>

<p><font size="2">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 &quot;sales&quot; would be
treated as financing obligations. Gains and losses from such
sales are not significant.</font></p>

<p><font size="2"><b>Q) Reclassification of inventory</b></font></p>

<p><font size="2">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 (&quot;compulsory stock&quot;) 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.</font></p>

<p><font size="2">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><font size="2"><b>R) Comprehensive Income</b></font></p>

<p><font size="2">Under Italian GAAP disclosure of Comprehensive
Income and its component is not required.</font></p>

<p><font size="2">U.S. GAAP requires the reporting and display of
comprehensive income and its components in accordance with
Statement of Financial Standard No. 130, &quot;Reporting
Comprehensive Income&quot; (&quot;SFAS 130&quot;). 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><font size="2"><b>S) Earnings per share</b></font></p>

<p><font size="2">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 2004, related to stock grant plans
approved by Eni as of December 31, 2002.</font></p>

<p><font size="2">Under U.S. GAAP prior year earnings per share
is not adjusted for the exercise of stock grants in 2004.</font></p>

<p><font size="2">This difference did not generate a significant
difference between U.S. GAAP and Italian GAAP.</font></p>

<p><font size="2">Beginning in 2003 stock grant and option plans
approved by Eni have been 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><font size="2"><b>T) Guarantees</b></font></p>

<p><font size="2">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.</font></p>

<p><font size="2">U.S. GAAP requires a company to recognize a
liability for the obligations it has undertaken in issuing
guarantees. This liability is to be recorded at the inception of
a guarantee and would be measured at fair value.</font></p>

<p><font size="2">This difference did not generate a significant
difference between U.S. GAAP and Italian GAAP.</font></p>

<p><font size="2"><b>U) Liabilities for redundancies</b></font></p>

<p><font size="2">Under Italian GAAP, expected liabilities for
redundancy incentives are accrued in &quot;Reserves for
contingencies - Other&quot;, 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.</font></p>

<p><font size="2">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 for
accruing a liability.</font></p>

<p>&nbsp;</p>

<p style="page-break-before:always"><b>28 Reconciliations between
net income and shareholders&#146; equity determined under Italian
GAAP to U.S. GAAP</b></p>

<p><font size="2">The following is a summary of the significant
adjustments to net income for the years ended December 31, 2002,
2003 and 2004 and to shareholders&#146; equity as of December 31,
2003 and 2004 that would be required if U.S. GAAP had been
applied instead of Italian GAAP in the consolidated financial
statements.</font></p>

<p><font size="2"><b>Reconciliation of net income</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="90%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="90%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net income according to the financial
        statements prepared under Italian GAAP</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,593</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,585</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7,274</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Items
        increasing (decreasing) reported net income:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">44</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">A. effect
        of the differences related to companies carried on the
        equity method</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">106</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">107</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">134</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">B. successful-efforts accounting</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">222</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">C. asset
        impairments and revaluations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">71</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">74</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">D. effect of the elimination of monetary
        revaluations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">E.
        deferred income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(16</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">286</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(928</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">F. use of different depreciation rates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(67</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(179</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(116</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">G.
        adjustment for the amortization of goodwill</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">29</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">94</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">80</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">G. differences in fair value assigned to assets
        acquired in the purchase of a business</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">H.
        capitalized interest expense</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(33</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">I. derivative contracts</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">54</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(51</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(106</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">J. stock
        grants and options awarded to employees</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(9</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(15</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(18</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">K. effect of the elimination of stock issuance
        costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">M.
        differences in the accrual for site restoration and
        abandonment liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(53</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">109</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">U. differences in reserves for contingencies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">60</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Other
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Adjustments of gains on the sale of an interest
        in a consolidated subsidiary<sup>(b)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(215</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Effect of
        U.S. GAAP adjustments on minority interest <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">183</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">154</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">162</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net adjustment</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>699</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>513</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(873</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        income in accordance with U.S. GAAP before cumulative
        effect of change in accounting principles</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,292</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6,098</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6,401</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Effect of the initial application of SFAS 143 <sup>(d)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">198</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        income in accordance with U.S. GAAP</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,292</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6,296</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6,401</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net income per share before cumulative effect
        of change in accounting principles </b><sup>(e)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1.61</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        income per share resulting from the cumulative effect of
        the initial application of SFAS 143 </b><sup>(e)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>0.05</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net income per share including the cumulative
        effect of the initial application of SFAS 143 </b><sup>(e)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1.38</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1.67</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1.70</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        income per ADS (based on five shares per ADS) </b><sup>(e)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6.92</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>8.33</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>8.49</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="90%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(a)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font 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 years
        2004 and 2003 and to Italgas SpA and Saipem SpA and their
        subsidiaries for the year 2002.</font></td>
    </tr>
    <tr>
        <td valign="top"><font size="1">(b)</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="1">This item refers to a
        downward adjustment of the gain on the sale of a 9.054%
        interest in the subsidiary Snam Rete Gas due to an
        increase of net book value of this subsidiary due to the
        use of different rates of depreciation for natural gas
        pipelines and other adjustment under U.S. GAAP.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(c)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="1">Adjustment to
        account for minority interest portion of differences B
        through U, which include 100% of the differences between
        Italian GAAP and U.S. GAAP on less than wholly-owned
        subsidiaries.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(d)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="1">Total effect
        for the years before January 1, 2003 net of income taxes
        for euro 207 million.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(e)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="1">Amounts in
        euro.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><b>Discontinued
operations</b></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Analysis of net income between:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        continuing operations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">5,300</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6,226</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6,217</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- discontinuing operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">184</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        income (U.S. GAAP)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,292</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6,296</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>6,401</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><b>Amounts per share/ADS</b></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Net income per share:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        continued operations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1.38</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1.65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1.65</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- discontinued operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">0.00</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">0.02</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">0.05</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Net income
        per ADS:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- continued operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6.93</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8.24</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8.25</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        discontinued operations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(0.01</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">0.09</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">0.24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Within the rationalization strategy of its
mineral asset portfolio, aimed at increasing its value by
focusing on strategic areas with good growth potential and
leaving marginal areas, in 2004 Eni sold the following assets
which have been classified as discontinued operations: (i)
Eni&#146;s interests in Blocks T (Eni operator with an 88.74%
interest) and B (Eni operator with an average 70.2% interest)
located in the British section of the North Sea off the Scottish
coast; (ii) its interest in the Markham and JC3 natural gas
fields in the Southern section of the North Sea; (iii) proved and
unproved property in Gabon: an 80% interest in the offshore
producing Limande field and three offshore exploration permits;
(iv) other minor assets.</font></p>

<p><font size="2">Within its strategy of concentrating in
downstream oil in Europe, in August 2004 Eni sold to the
Brazilian company, Petrobras, its 100% interest in Agip do Brasil
SA, engaged in the distribution of refined products.</font></p>

<p><font size="2">Within its strategy of reducing capital
employed in Petrochemicals, Eni concluded in January 2004 the
sale of its plant for the production of elastomers in Baytown
(Texas).</font></p>

<p><font size="2">In October 2004, Eni sold a waste disposal unit
in Ravenna.</font></p>

<p><font 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>

<p style="page-break-before:always"><font size="2"><b>Reconciliation
of shareholders&#146; equity</b></font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="90%">
    <tr>
        <td valign="bottom" width="78%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="78%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="90%">
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>Shareholders&#146; equity according to the
        financial statements prepared under Italian GAAP</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>26,696</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>30,338</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Items
        increasing (decreasing) reported shareholders&#146;
        equity: <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        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 valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">85</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">A. effect
        of the differences related to companies carried at equity
        method</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">213</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">347</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">B. successful-efforts accounting</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,253</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,072</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">C. asset
        impairments and revaluations</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">35</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">D. elimination of monetary revaluations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(80</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(75</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">E.
        deferred income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(3,207</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(4,212</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">F. use of different depreciation rates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,551</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,435</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">G.
        goodwill</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">121</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">296</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">G. assets associated with the acquisition of a
        company (portfolio of clients)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">H.
        capitalized interest expense</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">667</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">671</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">I. derivative contracts</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(42</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">K. stock
        issuance costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(10</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">L. fair value of marketable securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">M. site
        restoration and abandonment liabilities (SFAS 143)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">441</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">533</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">U. reserves for contingencies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">116</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">128</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Other
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">57</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Effect of U.S. GAAP adjustments on minority
        interest <sup>(c)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(965</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,018</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b>Net
        adjustment</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2,252</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>1,311</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>Shareholders&#146; equity in accordance with
        U.S. GAAP</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>28,948</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>31,649</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="90%">
    <tr>
        <td valign="bottom" width="78%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(a)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="1">Items
        increasing (decreasing) reported shareholders&#146;
        equity of foreign companies are translated into euro at
        exchange rate prevailing at the end of each period.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(b)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font 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.</font></td>
    </tr>
    <tr>
        <td valign="top" width="2%"><font size="1">(c)</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="97%"><font size="1">Adjustment to
        account for minority interest portion of differences B
        through U, which include 100% of the differences between
        Italian GAAP and U.S. GAAP on less than wholly-owned
        subsidiaries.</font></td>
    </tr>
</table>

<p style="page-break-before:always"><font size="2">Shareholders&#146;
equity under U.S. GAAP includes other comprehensive income, with
a negative balance of euro 2,748 million and euro 3,531 million
as of December 31, 2003 and 2004, respectively. Such other
comprehensive income primarily relates to exchange rate
differences resulting from the translation of financial
statements of foreign companies; amounts described are gross of
deferred income taxes. The decrease in the other comprehensive
income of euro 783 million regards essentially exchange rate
differences due to the translation of financial statements
prepared in currencies other than the euro (euro 783 million; of
which euro 550 million related to companies whose functional
currency is the US dollar).</font></p>

<p><font size="2">The consolidated balance sheets, if determined
under U.S. GAAP would have been as follows:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="78%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="78%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>ASSETS</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b>Current
        assets</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Cash</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,224</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">988</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Marketable
        securities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,462</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,475</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Accounts receivable trade, financing and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14,193</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13,904</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Inventories</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,266</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,273</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Accrued interest and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">601</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">494</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b><i>Total
        current assets</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>19,746</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>19,134</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>Non-current assets</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Fixed
        assets, net</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">38,468</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">39,652</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Non-current inventories (compulsory stock)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">721</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">662</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Receivables</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">1,602</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,151</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Investments</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,010</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,331</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Intangible
        assets</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5,547</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5,125</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,901</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,299</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b><i>Total
        non-current assets</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>52,249</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>53,220</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>TOTAL ASSETS</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>71,995</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>72,354</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b>LIABILITIES
        AND SHAREHOLDERS&#146; EQUITY</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>Current liabilities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Short-term
        debt</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">7,470</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4,474</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Current portion of long-term debt</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">672</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">935</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Trade
        accounts payable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5,146</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5,385</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Advances</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">798</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">726</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Taxes
        payable</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,661</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">2,423</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Accrued expenses and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,971</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,875</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b><i>Total
        current liabilities</i></b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>20,718</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>17,818</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>Non-current liabilities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Long-term
        debt</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">8,002</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">7,288</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Reserve for employee termination indemnities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">524</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">556</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Reserves
        for contingencies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5,444</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5,698</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Deferred and other non-current income tax
        liabilities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,943</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,579</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Accrued
        expenses and other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">594</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">461</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b><i>Total non-current liabilities</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>20,507</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>20,582</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b>TOTAL
        LIABILITIES</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>41,225</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>38,400</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b>Minority interests</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,822</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,305</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b>Shareholders&#146;
        equity</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Capital stock 4,004,424,476 fully paid shares
        nominal value 1 euro each (4,002,922,176 fully paid
        shares at December 31, 2003)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,003</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,004</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">21,813</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">24,473</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1">Treasury shares</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,164</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1">Net income
        for the year</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6,296</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6,401</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%" bgcolor="#EEEEEE"><font
        size="1"><b><i>Total shareholders&#146; equity</i></b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>28,948</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>31,649</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="78%"><font size="1"><b>TOTAL
        LIABILITIES AND SHAREHOLDERS&#146; EQUITY</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>71,995</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>72,354</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="78%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2">The fixed
assets, if determined under U.S. GAAP would have been as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="77%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>Dec. 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">Fixed asset, gross:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">-
        Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">38,851</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">39,584</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Gas &amp; Power</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18,974</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20,106</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">- Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">8,479</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">8,568</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,780</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,793</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">- Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">108</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">110</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Other activities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,567</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,511</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">-
        Corporate and financial companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">146</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">191</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>71,905</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>73,863</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">Less
        accumulated depreciation, amortization and writedowns:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17,678</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18,155</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">- Gas
        &amp; Power</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">6,605</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">6,896</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Refining &amp; Marketing</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,270</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,214</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">-
        Petrochemicals</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">2,522</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">2,564</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Oilfield Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">69</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">- Other
        activities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">1,242</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">1,229</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Corporate and financial companies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">84</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>33,437</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1"><b>34,211</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">Fixed assets, net:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">-
        Exploration &amp; Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">21,173</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">21,429</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Gas &amp; Power</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12,369</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13,210</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">- Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">3,209</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">3,354</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,258</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,229</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">- Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">44</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">41</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE"><font
        size="1">- Other activities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">325</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">282</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%"><font size="1">-
        Corporate and financial companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">90</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><p align="right"><font
        size="1">107</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>38,468</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="10%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>39,652</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="77%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="10%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Operating income (loss) by industry segment</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Exploration
        &amp; Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">5,494</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">5,661</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">7,946</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Gas &amp; Power</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,666</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,537</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,371</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Refining
        &amp; Marketing</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">303</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">617</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">811</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Petrochemicals</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(141</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(97</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">281</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Oilfield
        Services Construction and Engineering</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(14</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(52</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Other activities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(237</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(204</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(364</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Corporate
        and financial companies</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(210</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(301</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(254</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7,861</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>9,215</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>11,739</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Income
        before income taxes and the initial application of SFAS
        143</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>8,350</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>9,274</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>12,324</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Effect of the initial application of SFAS 143</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">405</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        income before income taxes</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>8,350</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>9,679</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>12,324</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">Operating income (loss) by segment relating to
2002 was reclassified on the basis of the new subdivision of
activities. In particular, &quot;Other activities&quot; included
data of Syndial SpA and its subsidiaries, previously included in
the &quot;Petrochemicals&quot; segment. The information relating
to the new segment &quot;Corporate and financial companies&quot;
was moved from &quot;Other activities&quot;. In addition,
following the merger of EniData SpA into Eni SpA, operating
income related this company for 2002 and 2003 was moved from
&quot;Other activities&quot; to &quot;Corporate and financial
companies&quot;.</font></p>

<p>&nbsp;</p>

<p style="page-break-before:always"><b>29 Additional financial
statement disclosures required by U.S. GAAP and the SEC</b></p>

<p><font size="2"><b>Charges related to asset retirement
obligations</b></font></p>

<p><font size="2">Changes in asset retirement obligations during
the year were:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1"><b>Asset retirement obligations as of January 1</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,923</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,950</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">New
        obligations incurred during the year</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">193</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">Accretion of discount</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">102</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">80</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">Revisions
        of previous estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">40</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">Spending on existing obligations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">Property
        dispositions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(20</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(234</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">Foreign currency translation</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(155</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">Other
        adjustments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1"><b>Asset retirement obligations as of December
        31</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,950</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,959</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><b>Stock compensation</b></font></p>

<p><font size="2">With the aim of improving motivation and
loyalty of its managers, Eni approved plans for the granting 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, &quot;Accounting for Stock-Based Compensation&quot;
(&quot;SFAS 123&quot;) 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 No.
27). Costs of plans for 2003 have been determined according to
Italian GAAP with criteria similar to those of SFAS 123.</font></p>

<p><font size="2"><b>Stock grants</b></font></p>

<p><font size="2">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
them towards the creation of shareholder value and 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 Article 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. </font></p>

<p><font size="2">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 Article 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
&quot;Reserve for the issue of shares in accordance with Article
2349 of the Civil Code&quot;. 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.</font></p>

<p><font size="2">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 Article 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 &quot;Reserve for the issue of shares in
accordance with Article 2349 of the Civil Code&quot;. 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.</font></p>

<p><font size="2">Eni&#146;s Shareholders&#146; Meeting of May
30, 2003 authorized the Board of Directors to make available 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 preset corporate 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 those managers of the Group who have achieved in 2002
the individual preset targets.</font></p>

<p><font size="2">On July 6, 2004 the Board of Directors approved
the Stock Grant Plan for 2004 that entails the assignment for no
consideration of up to 1.4 million treasury shares (corresponding
to about 0.035% of Eni&#146;s share capital) to those managers of
the Group who have achieved in 2003 the individual preset
targets.</font></p>

<p><font size="2">Eni granted 5,353,100 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); (v) in 2004 a total of 1,035,600 (fair value 14.57).</font></p>

<hr size="1" align="left" noshade width="18%">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(2)</font></td>
        <td width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">Does not
        include listed subsidiaries, which have their own stock
        grant plans.</font></td>
    </tr>
</table>

<p align="left" style="page-break-before:always">&nbsp;</p>

<p><font size="2"><b>Stock Option Plans</b></font></p>

<p><font size="2"><i>2000-2001</i></font></p>

<p><font size="2">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 price 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 to increase
capital of September 26, 2000) are no longer exercisable and
consequently were cancelled.</font></p>

<p><font size="2"><i>2002</i></font></p>

<p><font size="2">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 Article 2359 of the Civil
Code, who are in the positions that most contribute to the
Group&#146;s performance and are of strategic interest to the
Group (314 persons).</font></p>

<p><font size="2">On July 2, 2002 the Board of Directors approved
the Stock Option Plan for 2002 which provides for the granting 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 date of
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.</font></p>

<p><font size="2">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><font size="2"><i>2003</i></font></p>

<p><font size="2">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 share (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 the date of grant 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 grant and the average prices of treasury share in
portfolio the day before the option grant. In the 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.</font></p>

<p><font size="2"><i>2004</i></font></p>

<p><font size="2">On July 6, 2004 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 2004
which provides for the granting of a maximum of 5 million options
for the purchase of treasury shares (corresponding to 0.125% of
Eni&#146;s share capital) in a 1 to 1 ratio 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 date of the option grant and the average cost of
the treasury shares held by Eni as of the day prior to the
assignment; (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, 2004.
Grantees are provided the option to purchase Eni shares at the
above mentioned exercise price after three years from the date of
grant until July 29, 2012 (for the Managing Director options
expire on July 31, 2004).</font></p>

<p><font size="2">The weighted-average remaining contractual life
of options outstanding at December 31, 2002 and 2003 is 5.6 and
6.6 years, respectively. All stock options granted are considered
fixed.</font></p>

<p><font size="2">The following is a summary of stock option
activity for the years 2002, 2003 and 2004:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="34%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="34%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="21%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="34%" height="45"><font
        size="1">(euro)</font></td>
        <td valign="bottom" width="1%" height="45">&nbsp;</td>
        <td valign="bottom" width="10%" height="45"><p
        align="center"><font size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="45">&nbsp;</td>
        <td valign="bottom" width="10%" height="45"><p
        align="center"><font size="1"><b>Weighted average
        exercise price </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" height="45">&nbsp;</td>
        <td valign="bottom" width="10%" height="45"><p
        align="center"><font size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="45">&nbsp;</td>
        <td valign="bottom" width="10%" height="45"><p
        align="center"><font size="1"><b>Weighted average
        exercise price </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%" height="45">&nbsp;</td>
        <td valign="bottom" width="10%" height="45"><p
        align="center"><font size="1"><b>Number of shares</b></font></p>
        </td>
        <td valign="bottom" width="1%" height="45">&nbsp;</td>
        <td valign="bottom" width="10%" height="45"><p
        align="center"><font size="1"><b>Weighted average
        exercise price </b><sup>(a)</sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="34%" height="5">&nbsp;</td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Options as of January 1</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12,032,000</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12.992</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,518,500</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>15.216</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,162,000</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>14.367</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">New
        options granted</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,518,500</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">15.216</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4,703,000</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">13.743</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,993,500</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">16.576</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1">Options exercised in the period</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(354,000</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14.511</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1">Options
        cancelled in the period</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(12,032,000</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">12.992</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(59,500</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">15.216</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">(12,500</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">14.450</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%" bgcolor="#EEEEEE"><font
        size="1"><b>Options outstanding as of December 31</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,518,500</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>15.216</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,162,000</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>14.367</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>11,789,000</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>15.111</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="31%"><font size="1"><b>of
        which exercisable at December 31</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>42,000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>15.216</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>73,000</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>14.802</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>-</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>-</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="34%" height="5">&nbsp;</td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
        <td valign="bottom" width="1%" height="5">&nbsp;</td>
        <td valign="bottom" width="10%" height="5"><hr size="1"
        noshade color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(a) Below quoted market price.</font></p>

<p style="page-break-before:always"><font size="2">The fair value
of stock options granted during the years ended December 31,
2002, 2003 and 2004 of euro 5.39, 1.50 and 2.01 respectively,
were calculated applying the Black-Scholes method and using the
following assumptions:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="0" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="0" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="0" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="1">Risk-free interest rate</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.21</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="1">Expected
        life</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">(year)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%" bgcolor="#EEEEEE"><font
        size="1">Expected volatility</font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">43</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">19</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="61%"><font size="1">Expected
        dividends</font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4.5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">5.35</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4.5</font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="0" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="0" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="0" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2">The following is a summary of the effect of
stock compensation, as required under SFAS 123:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro except per share data)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net income as reported</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,292</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,296</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,401</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Pro-forma
        fair value expense, net of APB 25 expense of euro 0, 0
        and (9) million in 2002, 2003 and 2004, respectively</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(3</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Pro-forma net income</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,289</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,290</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,404</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Pro-forma
        earnings per share</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1.38</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1.66</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1.70</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><b>Comprehensive income</b></font></p>

<p><font size="2">U.S. GAAP requires the reporting and display of
comprehensive income and its components in accordance with
Statement of Financial Accounting Standards No. 130,
&quot;Reporting Comprehensive Income&quot; (&quot;SFAS
130&quot;). 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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net income in accordance with U.S. GAAP</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,292</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,296</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,401</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Other
        comprehensive income (loss) for the period gross of
        income taxes</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Fair value of marketable securities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">19</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Exchange
        differences from translation of financial statements
        denominated in currency other than euro</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(2,001</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(2,136</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(846</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Exchange differences from translation in the
        period and other changes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(124</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">213</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(2,106</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(1,925</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(828</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Net comprehensive income for the period
        according to U.S. GAAP</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,186</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,371</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,573</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><b>Income taxes</b></font></p>

<p><font size="2">The following information is presented
according to Statement of Financial Accounting Standards No. 109
&quot;Accounting for Income Taxes&quot;.</font></p>

<p><font size="2">Domestic and foreign components of pre-tax
income are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="69%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE"><font
        size="1">Domestic</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,592</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,307</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,468</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%"><font size="1">Foreign</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,758</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">4,372</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">6,856</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,350</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>9,679</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12,324</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">The provisions for income taxes are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Current</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,461</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,009</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,470</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Deferred</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(602</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(914</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1,112</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,859</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,095</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,582</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">The reconciliation of the income tax provision
calculated under Italian tax regulation by applying a 33% rate
(Ires - national corporate income tax) to pre-tax income and
4.25% (Irap - regional income tax) 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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>Income before income tax in accordance with
        U.S. GAAP</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,350</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>9,679</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12,324</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Italian
        statutory tax rate (state and local)</font></td>
        <td valign="bottom" width="3%"><p align="right"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">41.4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">39.5</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">38.3</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1"><b>Expected income tax provision in accordance
        with U.S. GAAP at Italian statutory tax rate</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,453</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,820</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,714</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">Effect of
        items increasing (decreasing) the Italian statutory tax
        rate:</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">- taxation of foreign operations at rates
        different from Italian statutory tax rate</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">194</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">318</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">835</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">- taxes on
        distributable reserves</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(75</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">121</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">446</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">- effects of tax credits</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(420</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(128</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">-
        permanent differences</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">64</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(75</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(143</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">- devaluation/revaluation of deferred tax assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(13</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(218</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">- net tax
        effects due to the revaluation of assets (Financial Law
        2004)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(417</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE"><font
        size="1">- net tax effects due to the applications of Law
        448/2001</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(497</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1">- other</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(356</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(34</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(44</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="64%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(594</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(725</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>868</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="64%"><font size="1"><b>Income
        taxes in accordance with U.S. GAAP</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2,859</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>3,095</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,582</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p><font size="2"><i>Net deferred tax liabilities</i></font></p>

<p><font size="2">Net deferred tax liabilities under U.S. GAAP,
represented by net deferred taxes recorded under &quot;Reserve
for taxes&quot; (euro 6,367 million), less deferred tax assets
recorded under &quot;Other assets&quot; (euro 1,159 million)
amounted to euro 5,208 million at December 31, 2004 (euro 3,997
million as of December 31, 2003).</font></p>

<p><font size="2">The tax effects of significant temporary
differences causing the tax liabilities are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">Deferred tax liabilities:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">-
        accelerated depreciation</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">4,021</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">4,672</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- distributable reserves subject to taxes in
        case of distribution</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,437</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,970</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">- excess
        cost paid for the acquisition of consolidated investments</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1,245</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1,033</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- successful-efforts accounting</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">451</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">467</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">-
        capitalization of interest expense</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">250</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">246</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- reserves for uncollectible receivables</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">150</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">137</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">- release
        of excess contingency reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">89</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- gains taxable in the future</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">62</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">46</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">- other</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">292</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">378</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,997</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>10,032</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">Deferred
        tax assets:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- accruals for doubtful accounts and
        contingencies</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,858</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,045</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">-
        revaluation of assets in accordance with Law 342/2000</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(1,474</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(1,361</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- tax loss carryforwards</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,350</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,072</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">-
        investment revaluation in accordance with Law 292/1993
        and the allocation of the merger difference arising <br>
        &nbsp;&nbsp;from the merger of Agip SpA into Eni SpA</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(818</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(818</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- revaluation of fixed assets under Law 448/2001</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(628</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(639</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">- losses
        on investments and subsidiaries in excess of currently
        allowable tax deductions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(644</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(472</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- future deductible amortization</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(432</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">-
        writeoffs of assets deductible in the future</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(326</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(225</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">- other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(773</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(599</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(8,143</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(7,663</b></font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE"><font
        size="1">Less:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1">-
        valuation allowance</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3,143</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,839</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="80%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(5,000</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>(4,824</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1"><b>)</b></font></td>
    </tr>
    <tr>
        <td valign="bottom" width="80%"><font size="1"><b>Net
        deferred tax liabilities</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>3,997</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,208</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="80%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">The valuation allowance of euro 2,839 million
(euro 3,143 million at December 31, 2003) against net deferred
tax assets is required because certain consolidated
companies&#146; expected future fiscal profits are not considered
sufficient to utilize respective net deferred tax assets.</font></p>

<p><font size="2"><i>Tax loss carryforwards</i></font></p>

<p><font size="2">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>&nbsp;</p>

<p><font size="2"><b>Acquisition of Italgas SpA</b></font></p>

<p><font size="2">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
correlated with the Italian regulation following Legislative
Decree No. 164/2000 (see &quot;Concentrations and certain
significant estimates - Gas &amp; Power&quot;). 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 allowed by Legislative Decree No. 164/2000;
(iii) 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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="85%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="1"><b>Cash paid for shares purchased</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,569</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%"><font size="1"><b>Allocation
        of purchase price for assets acquired</b></font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="1">Fixed assets</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,163</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%"><font size="1">Goodwill</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">941</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="1">Investments</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">293</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%"><font size="1">Portfolio
        of clients</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">112</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="1">Deferred tax</font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(562</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="85%"><font size="1">Other
        assets and liabilities</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="11%"><p align="right"><font
        size="1">(378</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="85%" bgcolor="#EEEEEE"><font
        size="1"><b>Total allocation of purchase price</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="11%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,569</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Investments</b></font></p>

<p><font size="2">At December 31, 2003 and 2004, investments of
euro 4,010 million and euro 4,331 million, respectively, include
shares of Saipem SpA, which is publicly listed on the Italian
Stock Exchange.</font></p>

<p><font size="2">The following information includes its fair
value:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Eni&#146;s number</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Equity ratio</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Share price</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>Market value</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1"><b>of shares</b></font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1">(%)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1">(euro)</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="center"><font
        size="1">(million euro)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1"><b>December 31, 2003</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">Saipem SpA</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">189,423,307</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">43.00</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">6.459</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,223</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%" bgcolor="#EEEEEE"><font
        size="1"><b>December 31, 2004</b></font></td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="3%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="12%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="39%"><font size="1">Saipem SpA</font></td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">189,423,307</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">42.95</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">8.864</font></p>
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><p align="right"><font
        size="1">1,679</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="39%">&nbsp;</td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="3%">&nbsp;</td>
        <td valign="bottom" width="12%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">In 2003, and 2004, Saipem SpA is included in
the consolidation under Italian GAAP, while, under U.S. GAAP, it
is valued under the equity method.</font></p>

<p><font size="2">Information about Saipem SpA and its
subsidiaries, representing a 100% share of the companies, is as
follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="79%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>Dec 31, 2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="79%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="79%" bgcolor="#EEEEEE"><font
        size="1">Total assets</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,098</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,266</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="79%"><font size="1">Total
        liabilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,584</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">3,572</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="79%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="69%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE"><font
        size="1">Net sales from operations</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6,385</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,217</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,306</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%"><font size="1">Operating
        income</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">835</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">358</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1">368</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%" bgcolor="#EEEEEE"><font
        size="1">Net income</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">587</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">254</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="9%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">271</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="69%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2"><b>Concentrations and certain significant
estimates</b></font></p>

<p><font size="2">The following information is presented
according to Statement of Position 94-6 &quot;Disclosures of
Certain Significant Risks and Uncertainties&quot;.</font></p>

<p style="page-break-before:always"><font size="2"><i>Nature of
operations</i></font></p>

<p><font size="2">Eni is an integrated energy company operating
in the oil and gas, electricity generation, petrochemicals and
oilfield services and engineering industries.</font></p>

<p><font size="2"><b>Exploration &amp; Production: </b>through
its 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 Far East (Iran, Indonesia,
Pakistan, China and Australia). In 2004, 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.</font></p>

<p><font size="2">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>

<p><font 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 85% of total
purchases 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 in Italy are obtained principally from
domestic gas produced by 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 50.06%), that was constituted in
accordance with Law Decree No. 164/2000, owns the pipeline
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. Following the
demerger of Italgas, which attributed to Eni the interests owned
by Italgas in Italian companies selling natural gas (among which
a 100% interest in Italgas Pi&#249;, merged into Eni) and in foreign
companies selling natural gas (among which a 40% interest in
Tigaz), Eni now manages directly about 5 million customers of the
residential and commercial segment, optimizing its commercial
structure. Eni is engaged 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.</font></p>

<p><font size="2">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></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">total free
        market after 2003;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font 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 in order
        to sell it. 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 own consumption and, in
        case of sales, also net of losses;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">tariffs for
        transport, dispatching, storage, use of LNG terminals and
        local network distribution are set by Authority for
        Electricity and Gas;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%">-</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">third parties
        are to access the transmission system on a regulated
        basis.</font></td>
    </tr>
</table>

<p><font size="2">Eni through EniPower SpA (Eni 100%) and
subsidiaries is engaged in the electricity business at the power
plants located in the Ferrera Erbognone, Ravenna, Livorno,
Taranto, Mantova and Brindisi industrial sites with installed
capacity of 3.3 gigawatts and a production sold of 13.85
terawatthours. The demand for gas and fuel oils of
EniPower&#146;s stations is met by Eni supplies.</font></p>

<p><font 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 and Europe. Eni is the largest
refiner of petroleum products in Italy in terms of overall
refining capacity. Approximately 50% of crude oil supplies is
purchased from Eni&#146;s Exploration &amp; Production segment,
the rest is purchased from producing countries pursuant to
purchase contracts (28%) and in international spot markets (20%).
Over 50% of the purchased crude oil is processed. Over 30% of oil
processed derives from the production of Eni&#146;s Exploration
&amp; Production segment.</font></p>

<p><font size="2"><b>Petrochemicals:</b> through Polimeri Europa
SpA and its 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 22% of the oil-based feedstock requirements used by
petrochemical plants are supplied by Eni&#146;s Refining &amp;
Marketing segment.</font></p>

<p><font size="2"><b>Oilfield Services construction 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
its 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, 2004 approximately 8%
of the order backlog of Eni&#146;s Oilfield Services,
Construction and Engineering segment related to orders from Eni
Group companies.</font></p>

<p><font size="2"><i>Certain significant estimates</i></font></p>

<p><font size="2">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>&nbsp;</p>

<p><font size="2"><b>Accounting for Suspended Well Costs</b></font></p>

<p><font size="2">Refer to Note 27 &quot;Summary of significant
differences between Italian accounting principles and U.S. GAAP
on page F-64 under the caption &quot;B) Exploration &amp;
Production activities&quot; for a discussion of the
company&#146;s accounting policy for the cost of exploratory
wells.</font></p>

<p><font size="2">In April&nbsp;2005, the FASB issued FSP FAS
19-1 to amend FAS 19, &quot;Financial Accounting and Reporting by
Oil and Gas Producing Companies.&quot; Under the provisions of
FSP FAS 19-1, companies in the oil and gas industry are allowed
to continue capitalization of an exploratory well after the
completion of drilling when: (a)&nbsp;the well has found a
sufficient quantity of reserves to justify completion as a
producing well and (b)&nbsp;the enterprise is making sufficient
progress assessing the reserves and the economic and operating
viability of the project. If either condition is not met or if an
enterprise obtains information that raises substantial doubt
about the economic or operational viability of the project, the
exploratory well would be assumed to be impaired, and its costs,
net of any salvage value, would be charged to expense. FSP FAS
19-1 provided a number of indicators needing to be present to
demonstrate sufficient progress was being made in assessing the
reserves and economic viability of the project. Among these
indicators are: (i) costs are being incurred to assess the
reserves and their potential development; (ii) existence (or
active negotiations) of sales contracts with customers for oil
and natural gas; and (iii) existence of firm plans, established
timetables or contractual commitments, which may include seismic
testing and drilling of additional exploratory wells.</font></p>

<p><font size="2">The disclosures and discussion below address
those suggested in FSP FAS 19-1.</font></p>

<p><font size="2">The following table reflects the net changes in
capitalized exploratory well costs during 2004, 2003 and 2002,
and does not include amounts that were capitalized and
subsequently expensed in the same period. Capitalized exploratory
well costs for fiscal years ending December 31, 2004, 2003 and
2002, are presented based on the Company&#146;s previous
accounting policy.</font></p>

<p><font size="2">The adoption of this FSP does not result in the
write-off of any capitalized exploration drilling costs for the
period 2002-2004.</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Beginning balance at January 1</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">613</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">591</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">570</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Additions
        pending the determination of proved reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">235</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">284</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">185</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Amount previously capitalized charged to expense
        during the year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(63</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(107</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(54</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Reclassification
        to wells, facilities and equipment based on the
        determination of proved reserves</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(97</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(96</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(72</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">Other reductions <sup>(*)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">0</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Foreign
        exchange effects</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(94</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(100</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(37</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Ending Balance at December 31</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">591</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">570</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">513</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="1">___________________</font></p>

<p><font size="1">(*) Represents sales of properties.</font></p>

<p>&nbsp;</p>

<p><font size="2">The following table provides an aging of
capitalized exploratory well costs, based on the date the
drilling was completed, and the number of net wells for which
exploratory costs have been capitalized for the period:</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="27%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="16%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">million euro</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Net wells <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">million euro</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Net wells <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">million euro</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="center"><font
        size="1">Net wells <sup>(*)</sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="1">&lt; 1 year</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">200</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">17.76</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">264</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16.8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">156</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11.14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="1">1 to 3
        years</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">299</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">20.4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">241</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">22.38</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">319</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">27.55</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="16%" bgcolor="#EEEEEE"><font
        size="1">3 to 8 years</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">91</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">13.96</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8.36</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="13%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.8</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="16%"><font size="1"><b>Total
        at year end</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">591</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">52.12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">570</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">47.54</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">513</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="13%"><p align="right"><font
        size="1">42.49</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="1">___________________</font></p>

<p><font size="1">(*) A net well is the sum of the fractional
working interest owned in gross wells.</font></p>

<blockquote>
    <p>&nbsp;</p>
</blockquote>

<p style="page-break-before:always"><font size="2">The following
table provides, based on the date the drilling was completed, the
capitalized costs and the related net well number at year end
2004, 2003 and 2002 divided by category of projects of
exploratory activity.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="52%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="15%"><p align="center"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="52%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">mm euro</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">Net wells <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">mm euro</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">Net wells <sup>(*)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">mm euro</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="center"><font
        size="1">Net wells <sup>(*)</sup></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="1"><b>Project with wells drilled in the past 12
        months</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>200</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>17.76</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>264</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>16.8</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>156</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>11.14</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="1"><b>Project
        with recent or planned exploratory activitiy</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>163</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>11.61</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>163</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>13.39</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>283</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>21.94</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="1">Project with exploration activities already
        underway or firmly planned:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>future
        exploration drilling</i></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">87</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">5.05</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">101</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6.83</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">148</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">10.29</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<i>other
        exploratory activities</i></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">76</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6.56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">62</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6.56</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">135</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11.65</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="1"><b>Project
        with completed exploratory activity</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>227</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>22.75</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>143</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>17.35</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>75</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>9.41</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="1">Project progressing towards
        commercialization/sanction</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">221</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22.52</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">131</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16.46</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">61</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8.32</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%"><font size="1">Projects
        awaiting finalization of development facilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">0.23</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">0.89</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1.09</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="52%" bgcolor="#EEEEEE"><font
        size="1"><b>Total at the year end</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>591</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>52.12</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>570</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>47.54</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>513</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>42.49</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
        <td valign="bottom">&nbsp;</td>
        <td valign="bottom"><hr size="1" noshade color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="1">___________________</font></p>

<p><font size="1">(*) A net well is the sum of the fractional
working interest owned in gross wells.</font></p>

<blockquote>
    <p>&nbsp;</p>
</blockquote>

<p><font size="2">At the end of 2004 of the euro 513 million of
exploratory suspended costs, approximately euro 156 million
related to the 11 net wells for which the drilling was completed
in one year or less. Of the remaining euro 357 million, related
to the 31.35 net wells suspended for more than one year since the
completion of drilling, 79% is associated with projects for which
exploration activity is still ongoing.</font></p>

<p>&nbsp;</p>

<p><font size="2"><b>Recent accounting pronouncements</b></font></p>

<p><font size="2">In November 2004, the Financial Accounting
Standards Board issued the statement No. 151, &quot;Inventory
Costs - An Amendment of ARB No. 43, Chapter 4&quot; (SFAS 151),
and in December 2004 the statement No. 153, &quot;Exchanges of
Nonmonetary Assets - An Amendment of APB Opinion No. 29&quot;
(SFAS 153).</font></p>

<p><font size="2">SFAS 151 amends the guidance in ARB No. 43 and
clarifies that items such as idle facility expense, excessive
spoilage, double freight, handling costs and other similar costs
must be recognized as current period charges regardless of
whether they meet the criterion of &quot;so abnormal&quot;. In
addition, with the effort of the FASB to improve the
comparability with the international accounting standards (IFRS),
SFAS 151 provides that allocation of fixed production overheads
to the costs of conversion be based on the normal capacity of the
production facilities, also considering the losses of production
capacity following the closure of plants for planned
maintenances. The application of SFAS 151 is provided beginning
from 2006.</font></p>

<p><font size="2">Eni presently is analyzing the statement and,
at the moment, believes that the application will not have a
significant effect on Eni&#146;s consolidated financial position
or operating results.</font></p>

<p><font size="2">SFAS 153 amends APB Opinion 29, that provides
that exchanges of nonmonetary assets should be measured based on
the fair value of the assets exchanged, with the exception that
nonmonetary exchanges of similar productive assets should be
measured on a carryover basis. With the effort of the FASB to
improve the comparability with the international accounting
standards (IFRS), SFAS 153 eliminates the exception for exchanges
of nonmonetary exchanges of similar productive assets and
replaces it with a general exception for exchanges of nonmonetary
assets that do not have commercial substance. A nonmonetary
exchange has a commercial substance if the future cash flows of
the entity are expected to change significantly as a result of
the exchange. The first application of SFAS 153 is provided
beginning from July 1, 2005. Eni presently is analyzing the
statement and, at the moment cannot predict whether or not the
application will have a material impact on Eni&#146;s financial
position or operating results.<br>
<br>
<br>
<b>Subsequent events</b></font></p>

<p><font size="2">The main subsequent events occurred are as
follows:</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top"><font size="2">-</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="2">on February 18, 2005, the
        Council of Ministers, on proposal of the Ministry of
        Economy and Finance, presented a Draft Decree of the
        President of the Council of Ministers which defined
        criteria and modes for the divestment of the interest
        held by Eni in Snam Rete Gas SpA (50.06%). The special
        powers of the Ministry of Economy and Finance provided
        for by the regulations on the divestment of interests
        held by the Italian Government will be included in the
        by-laws of this company. After the publication of the
        relevant Decree, Eni will continue the procedure for the
        sale of Snam Rete Gas SpA shares until Eni&#146;s
        interest reaches 20% before July 1, 2007;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%"><font size="2">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">within the
        North Caspian Sea PSA for the development of the Kashagan
        field, on March 31, 2005 Eni and the other partners in
        the consortium, except for one, purchased proportionally
        to their respective working interest the 16.67% share of
        British Gas that left the project, following the exercise
        of the pre-emptive right in May 2003. All partners then
        sold 50% of this interest to the Kazakh national company
        Kazmunaygaz, new partner in the PSA with an 8.335%
        interest. Eni&#146;s interest in the operated project
        increased from 16.67% to 18.52% after the purchase that
        entailed an expenditure of US dollar 200 million;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%"><font size="2">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">in April 2005
        Eni concluded the sale procedure of a 90% interest in
        Italiana Petroli (IP) with a call-and-put option for the
        remaining 10% to be exercised in the second half of 2010.
        The transaction that has been submitted for approval to
        the Italian Antitrust Authority will entail cash proceeds
        of euro 186 million for 100% of the shares when
        finalized. In 2004, IP sold 2.6 billion liters of fuels
        with an average throughput of 896,000 liters; at year end
        IP&#146;s network included 2,915 service stations, of
        these approximately 2,700 were leased;</font></td>
    </tr>
    <tr>
        <td valign="top" width="1%"><font size="2">-</font></td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="98%"><font size="2">Eni
        Shareholders&#146; Meeting of May 27, 2005 resolved to
        extend Eni&#146;s share buy-back program for an 18-month
        period starting on May 27, 2005. Eni share buy-back
        program started in 2000 and provides for the purchase of
        a maximum of 400 million Eni shares for an amount not
        higher than euro 5.4 billion. Both limits include
        treasury shares held by Eni as of May 26, 2005 (245.16
        million shares for a total purchase cost of euro 3,440
        million).</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><b>Supplemental
oil and gas information (unaudited)</b></font></p>

<p><font size="2">The following information is presented in
accordance with Statement of Financial Accounting Standards No.
69, &quot;Disclosures about Oil &amp; Gas Producing
Activities&quot;. Amounts related to minority interests are not
significant.</font></p>

<p><font size="2"><i>Capitalized costs</i></font></p>

<p><font size="2">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>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>At December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Proved
        mineral interests <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8,766</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6,103</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6,141</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8,291</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6,389</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">35,690</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Unproved mineral interests</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">329</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">696</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,380</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Support
        equipment and facilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">262</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">594</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">208</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,147</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Incomplete wells and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">826</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,254</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,098</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">223</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,413</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,814</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Gross
        capitalized costs</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>9,854</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>8,280</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,530</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>9,242</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>9,125</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>44,031</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Accumulated depreciation, depletion and
        amortization</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,186</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,799</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,785</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,252</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,657</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(20,679</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Net
        capitalized costs</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,668</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>4,481</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,745</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>4,990</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>6,468</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>23,352</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>At December 31, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Proved
        mineral interests <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">9,056</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7,192</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6,288</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7,198</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">7,698</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">37,432</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Unproved mineral interests</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">272</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">561</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,006</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Support
        equipment and facilities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">252</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,056</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">209</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">75</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,625</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Incomplete wells and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">662</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">468</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,038</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">397</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">882</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,447</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Gross
        capitalized costs</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>9,970</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>8,988</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,605</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>8,189</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>9,758</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>44,510</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Accumulated depreciation, depletion and
        amortization</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,416</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,887</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,907</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,733</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,252</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(21,195</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Net
        capitalized costs</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,554</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,101</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,698</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>4,456</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>6,506</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>23,315</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(a) Includes capitalized costs for wells and
facilities related to proved reserves.</font></p>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><i>Cost
incurred</i></font></p>

<p><font size="2">Costs incurred represent amounts both
capitalized and expensed in connection with oil and gas producing
activities.</font></p>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Year ended December 31, 2002</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Proved
        property acquisitions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">128</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Unproved property acquisitions</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">167</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">189</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Exploration</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">69</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">116</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">203</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">430</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">902</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Development</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">440</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">724</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">986</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">316</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,622</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,088</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Total
        costs incurred</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>509</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>840</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,189</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>526</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>2,243</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,307</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Year ended December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Proved
        property acquisitions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">308</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">316</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Unproved property acquisitions</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">125</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">131</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Exploration</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">67</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">80</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">138</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">125</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">243</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">653</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Development <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">449</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,106</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,268</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">286</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,454</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,563</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Total
        costs incurred</b> <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>516</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,186</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,406</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>844</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,711</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,663</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Year ended December 31, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Proved
        property acquisitions</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Unproved property acquisitions </font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Exploration
        </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">64</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">71</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">66</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">194</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">499</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Development <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">431</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">965</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">881</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">391</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,407</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,075</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Total
        costs incurred</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>495</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,069</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>952</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>457</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>1,601</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>4,574</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="45%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="1%">&nbsp;</td>
        <td width="1%">&nbsp;</td>
        <td width="98%">&nbsp;</td>
    </tr>
    <tr>
        <td width="1%"><font size="1">(a)</font></td>
        <td width="1%">&nbsp;</td>
        <td width="98%"><font size="1">Includes for assets
        retirement obligations pursuant to SFAS 143
        &quot;Accounting for asset retirement obligations&quot;
        euro 84 million of costs capitalized during 2003 and 233
        euro million for 2004.</font></td>
    </tr>
    <tr>
        <td width="1%"><font size="1">(b)</font></td>
        <td width="1%">&nbsp;</td>
        <td width="98%"><font size="1">Includes costs for
        acquisition of Fortum Petroleum AS (now Eni Norge AS) of
        euro 434 million, net of the related gross-up for
        deferred taxes of euro 514 million. 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, (iii) Exploration
        euro 17 million.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><i>Results of
operations from oil and gas producing activities</i></font></p>

<p><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
including operating overheads. These amounts do not include any
allocation of interest expense or general corporate overhead 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&#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.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Year ended December 31, 2002</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Revenues:</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">- sales to affiliates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,871</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,673</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,856</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,748</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">281</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,429</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">- sales to
        unaffiliated entities</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">253</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,226</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">186</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">695</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,414</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3,774</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Total revenues</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,124</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,899</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,042</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,443</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,695</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>12,203</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Operations
        costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(218</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(352</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(317</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(490</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(237</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,614</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Production taxes</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(138</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(110</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(210</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(525</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Exploration
        expenses</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(80</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(71</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(116</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(117</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(294</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(678</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">D.D. &amp; A. and Provision for abandonment <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(528</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(532</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(390</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(863</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(758</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,071</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Other
        income and (expenses)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(258</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(186</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(122</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(47</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(183</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(796</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Pretax income from producing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,902</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,648</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>887</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>906</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>176</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,519</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Estimated
        income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(751</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(852</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(578</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(445</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(83</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,709</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Results of operations from E&amp;P activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,151</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>796</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>309</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>461</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>93</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,810</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Year
        ended December 31, 2003</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Revenues:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">- sales to
        affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,609</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,469</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,946</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,913</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">345</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8,282</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">- sales to unaffiliated entities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">153</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,188</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">164</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">822</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,595</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,922</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Total
        revenues</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,762</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,657</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,110</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,735</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,940</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>12,204</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Operations costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(222</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(316</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(283</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(446</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(235</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,502</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Production
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(136</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(97</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(235</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(79</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(558</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Exploration expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(89</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(113</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(96</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(276</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(644</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">D.D. &amp;
        A. and Provision for abandonment <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(458</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(420</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(377</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(759</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(734</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,748</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Other income and (expenses)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(170</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(264</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(121</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(289</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(830</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Accretion
        discount (SFAS 143) <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(37</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(14</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(42</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(102</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Pretax income from producing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,650</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,485</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>967</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,395</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>323</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,820</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Estimated
        income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(629</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(788</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(617</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(750</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(111</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,895</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Results of operations from E&amp;P activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,021</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>697</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>350</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>645</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>212</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,925</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Year
        ended December 31, 2004</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Revenues:</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">- sales to
        affiliates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,633</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,868</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,762</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,083</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">508</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">9,854</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">- sales to unaffiliated entities</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">148</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,364</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">306</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">709</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,086</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,613</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Total
        revenues</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,781</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,232</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,068</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,792</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>2,594</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>14,467</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Operations costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(223</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(292</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(322</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(405</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(289</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,531</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Production
        taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(118</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(91</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(379</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(13</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(163</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(764</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Exploration expenses</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(57</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(47</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(71</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(93</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(155</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(423</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">D.D. &amp;
        A. and provision for abandonment <sup>(a)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(489</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(437</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(482</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(687</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(849</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,944</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Other income and (expenses)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(368</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(216</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">97</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(208</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(793</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Accretion
        discount (SFAS 143) <sup>(b)</sup></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(37</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(5</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(17</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(15</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(80</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Pretax income from producing activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,759</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,992</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,581</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,676</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>924</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7,932</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Estimated
        income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(632</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(994</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(945</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(948</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(305</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(3,824</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Results of operations from E&amp;P activities</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,127</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>998</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>636</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>728</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>619</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,108</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(a) Includes assets impairments amounting for
euro 227 million for 2002, 210 million for 2003 and 300 million
for 2004.<br>
(b) Represents the financial effect of the passage of time
relating to Eni&#146;s future asset retirement obligations
pursuant to SFAS 143 &quot;Accounting for asset retirement
obligations&quot;.</font></p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><i>Average
sales prices and production costs per unit of production </i></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1"><b>2002</b> </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Average
        sales prices: </font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Oil and condensates, per BBL </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">($)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22.39</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23.49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23.62</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">23.97</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18.90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">22.81</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Natural
        gas, per kCF </font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.73</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2.83</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">0.42</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2.46</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2.90</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.08</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Average production costs, per BOE <sup>(1)</sup></font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.97</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.44</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5.75</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.94</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.83</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1"><b>2003</b>
        </font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Average sales prices: </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Oil and
        condensates, per BBL </font></td>
        <td valign="bottom" width="6%"><p align="right"><font
        size="1">($)</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">24.24</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">27.14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">27.60</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">28.37</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">21.53</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">26.29</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Natural gas, per kCF </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.65</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2.86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">0.53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.56</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Average
        production costs, per BOE <sup>(1)</sup></font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.77</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.70</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">6.21</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">4.19</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.26</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">4.16</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1"><b>2004</b> </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Average
        sales prices: </font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">&nbsp; </font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Oil and condensates, per BBL </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">($)</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">30.98</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">35.66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36.32</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36.92</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">30.79</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">34.76</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%"><font size="1">Natural
        gas, per kCF </font></td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">5.33</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2.92</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">0.60</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.87</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.29</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">3.89</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%" bgcolor="#EEEEEE"><font
        size="1">Average production costs, per BOE <sup>(1)</sup>
        </font></td>
        <td valign="bottom" width="6%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.35</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3.53</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">7.70</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.73</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.50</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4.92</font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="40%">&nbsp;</td>
        <td valign="bottom" width="6%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="1">___________________</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="1%"><font size="1">(1)</font></td>
        <td width="1%">&nbsp;</td>
        <td width="98%"><font size="1">Calculated net of volumes
        of natural gas consumed in operations. Starting in 2004,
        natural gas was converted to oil-equivalent at 5,742 CF =
        1 BBL. Previously, 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>&nbsp;</p>

<p><font size="2"><i>Oil and natural gas reserves</i></font></p>

<p><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 crude oil
and natural gas reserves have been calculated on the basis of the
spot price of Brent crude oil as of December 31, of each of the
three years presented (40.47, 30.10 and 25.66 US dollar per
barrel for 2004, 2003 and 2002, respectively) as provided for in
Rule 4-10 of Regulation S-X. Proved reserves exclude royalties
and interests owned by others.</font></p>

<p><font size="2">Proved developed reserves are proved reserves
that can be estimated to be recovered through existing wells with
existing equipment and operating methods.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">The estimates of Eni&#146;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, 2001, 2002, 2003 and
2004 are based on data prepared by Eni.</font></p>

<p><font size="2">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&#146;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&#146;s share
of production, and Eni&#146;s net equity share after cost
recovery. Proved oil and gas reserves associated with PSAs
represent 43%, 46% and 51% of total proved reserves as of
year-end 2002, 2003 and 2004, respectively, on an oil-equivalent
basis.</font></p>

<p><font size="2">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.</font></p>

<p><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 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&#146;s proved
reserves because the estimates of reserves are based on prices
and costs at the date when such estimates are made. Reserve
estimates are also subject to revision as prices fluctuate due to
the cost recovery feature under certain PSAs.</font></p>

<p><font size="2">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 2002, 2003 and 2004.</font></p>

<p style="page-break-before:always"><font size="2"><i>Crude oil
(Including Condensates and Natural Gas Liquids)</i></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(million
        barrels)</font><p><font size="1"><b>Proved Oil Reserves</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Reserves at December 31, 2001</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>309</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,171</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>976</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>552</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>940</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,948</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Purchase
        of Minerals in Place</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">13</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">25</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Revisions of Previous Estimates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(31</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">112</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">54</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Improved
        Recovery</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Extensions and Discoveries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">14</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">104</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">157</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(30</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(92</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(81</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(77</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(54</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(334</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Sales of Minerals in Place</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(33</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(82</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Reserves
        at December 31, 2002</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>255</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,072</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,022</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>498</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>936</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,783</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Purchase of Minerals in Place</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Revisions
        of Previous Estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">51</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">59</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">52</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">153</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">336</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Improved Recovery</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">16</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">31</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Extensions
        and Discoveries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">6</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">32</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">28</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">214</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">280</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(30</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(90</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(87</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(86</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(64</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(357</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Sales of
        Minerals in Place</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(21</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Reserves at December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>252</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,080</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,038</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>529</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,239</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,138</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Purchase
        of Minerals in Place</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Revisions of Previous Estimates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(22</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">44</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">12</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(18</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Improved
        Recovery</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">11</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">48</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">63</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Extensions and Discoveries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">20</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">34</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">144</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">206</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(30</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(94</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(104</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(74</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(75</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(377</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Sales of Minerals in Place</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(25</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(37</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Reserves
        at December 31, 2004</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>225</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>993</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,056</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>450</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,284</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>4,008</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(million
        barrels)</font><p><font size="1"><b>Proved Developed Oil
        Reserves</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Reserves at December 31, 2001</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">171</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">685</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">539</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">476</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">443</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,314</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Reserves
        at December 31, 2002</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">168</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">610</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">554</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">426</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">483</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,241</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Reserves at December 31, 2003</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">173</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">640</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">560</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">464</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">610</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,447</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Reserves
        at December 31, 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">174</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">655</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">588</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">386</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">668</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,471</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><i>Natural gas</i></font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(billion
        cubic feet)</font><p><font size="1"><b>Proved Natural Gas
        Reserves</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Reserves at December 31, 2001</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,640</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,509</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>925</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,892</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,106</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>17,072</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Purchase
        of Minerals in Place</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">87</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">87</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Revisions of Previous Estimates</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">21</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">257</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">115</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,238</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,639</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Improved
        recovery</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Extensions and Discoveries</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">105</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">9</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">636</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">74</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">223</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,047</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Production</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(456</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(212</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(36</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(201</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(228</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,133</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Sales</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(15</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(68</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1"><b>Reserves
        at December 31, 2002</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,295</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,563</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,533</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>1,899</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>4,339</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>18,629</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Purchase of Minerals in Place</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">425</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">443</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Revisions
        of Previous Estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(768</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(123</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">172</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">139</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">325</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(255</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Improved recovery</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Extensions
        and Discoveries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">242</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">100</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">426</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(455</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(215</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(49</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(276</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,224</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Sales</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(11</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Reserves at December 31, 2003</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,166</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,467</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,656</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,223</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,496</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>18,008</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Revisions
        of Previous Estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">105</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">814</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">129</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">75</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">84</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,207</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Improved Recovery</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Extensions
        and Discoveries</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">29</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">420</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">38</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">222</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">709</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Production</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(409</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(247</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(66</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(220</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(303</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,245</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Sales</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(73</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(65</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(115</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(254</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1"><b>Reserves at December 31, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,818</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>6,453</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>1,729</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>2,051</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,384</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>18,435</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(billion
        cubic feet)</font><p><font size="1"><b>Proved Developed
        Natural Gas Reserves</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy </b><sup>(a)</sup></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Reserves at December 31, 2001</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,665</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,103</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">584</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,721</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,221</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">8,294</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Reserves
        at December 31, 2002</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3,397</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,084</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">863</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,727</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,283</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">8,354</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%" bgcolor="#EEEEEE"><font
        size="1">Reserves at December 31, 2003</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,966</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">962</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">866</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,075</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">3,355</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">10,224</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="45%"><font size="1">Reserves
        at December 31, 2004</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">2,850</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,760</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">924</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">1,845</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">3,122</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">10,501</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p><font size="2">___________________</font></p>

<p><font size="1">(a) Including approximately 728, 779, 747 and
737 billions of cubic feet of natural gas held in storage at
December 31, 2001, 2002, 2003 and 2004 respectively.</font></p>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><i>Standardized
measure of discounted future net cash flows</i></font></p>

<p><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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">Future cash flows as of December 31, 2002, 2003
and 2004 include annual revenue payments from Eni&#146;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.</font></p>

<p><font size="2">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.</font></p>

<p><font size="2">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&#146;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>

<p>&nbsp;</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Italy</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>West Africa</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>North Sea</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Rest of World</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="center"><font
        size="1"><b>Total</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>At December 31, 2002</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        cash inflows</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">32,809</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">41,797</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">29,242</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">19,645</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">26,500</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">149,993</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Future production costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,367</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10,354</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,795</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,748</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,310</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(30,574</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        development and abandonment costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,755</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(3,880</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,706</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,523</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,459</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(13,323</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>Future net inflow before income tax</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>25,687</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>27,563</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>19,741</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>13,374</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>19,731</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>106,096</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        income tax</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(8,885</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(12,164</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(11,320</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(7,598</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(5,593</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(45,560</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>Future net cash flows</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>16,802</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>15,399</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,421</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,776</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>14,138</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>60,536</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">10%
        discount factor</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(7,471</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(7,411</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(3,534</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,577</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(6,063</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(26,056</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>Standardized measure of discounted future net
        cash flows</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>9,331</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>7,988</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,887</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>4,199</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,075</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>34,480</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>At
        December 31, 2003</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Future cash inflows</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">24,641</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">36,484</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">25,074</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">19,590</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">28,505</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">134,294</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        production costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(3,879</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(7,868</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(5,847</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(5,458</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(4,763</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(27,815</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Future development and abandonment costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,080</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,762</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,005</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,084</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(2,575</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(11,506</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Future
        net inflow before income tax</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>18,682</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>24,854</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>17,222</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>13,048</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>21,167</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>94,973</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Future income tax</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,113</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10,296</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(8,979</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(7,614</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,073</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(39,075</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Future
        net cash flows</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>12,569</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>14,558</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>8,243</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,434</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>15,094</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>55,898</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">10% discount factor</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(5,056</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,646</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,130</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(1,872</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(7,930</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(24,634</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1"><b>Standardized
        measure of discounted future net cash flows</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,513</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,912</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>5,113</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>3,562</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>7,164</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1"><b>31,264</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>At December 31, 2004</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        cash inflows </font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">28,582</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">40,373</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">28,395</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">20,435</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">32,619</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">150,404</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1">Future production costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(3,635</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(7,237</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(6,664</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(5,082</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,858</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(27,476</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        development and abandonment costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,210</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(4,073</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,873</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,419</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(2,873</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(12,448</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>Future net inflow before income tax</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>22,737</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>29,063</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>19,858</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>13,934</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>24,888</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>110,480</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">Future
        income tax</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(7,599</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(11,487</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(10,949</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(8,824</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(6,736</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(45,595</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>Future net cash flows</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>15,138</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>17,576</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,909</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,110</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>18,152</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>64,885</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="46%"><font size="1">10%
        discount factor</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(6,006</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(7,592</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(3,267</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(1,350</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(9,412</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="7%"><p align="right"><font
        size="1">(27,627</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="46%" bgcolor="#EEEEEE"><font
        size="1"><b>Standardized measure of discounted future net
        cash flows</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>9,132</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>9,984</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>5,642</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>3,760</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>8,740</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="7%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>37,258</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="46%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p style="page-break-before:always"><font size="2"><i>Changes in
standardized measure of discounted future net cash flows</i></font></p>

<p><font size="2">The following table reflects the changes in
standardized measure of discounted future net cash flows for the
years 2002, 2003 and 2004.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%"><font size="1">(million
        euro)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2002</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2003</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><p align="right"><font
        size="1"><b>2004</b></font></p>
        </td>
    </tr>
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>Beginning of year</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>26,771 </b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>34,480</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>31,264 </b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">Increase
        (Decrease):</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- sales, net of production costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10,064</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(10,144</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(12,172</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- net
        changes in sales and transfer prices, net of production
        costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">18,936</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(1,050</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">13,031</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- extensions, discoveries and improved recovery,
        net of future production and development costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,810</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,855</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">2,806</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- changes
        in estimated future development and abandonment costs</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(2,697</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(3,576</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(3,437</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- development costs incurred during the period
        that reduced future development costs</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,287</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,864</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,229</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">-
        revisions of quantity estimates</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1,715</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">2,348</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">1,658</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- accretion of discount</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">4,279</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,585</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">5,328</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- net
        change in income taxes</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(9,318</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">105</font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(4,805</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- purchase of reserves in-place</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">387</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">1,488</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1">- sale of
        reserves in-place</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(646</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(222</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1">(727</font></p>
        </td>
        <td valign="bottom" width="1%"><font size="1">)</font></td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1">- changes in production rates (timing) and other</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(980</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">(4,469</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE"><font
        size="1">)</font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1">83</font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%"><font size="1"><b>Net
        increase (decrease)</b></font></td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>7,709</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>(3,216</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="8%"><p align="right"><font
        size="1"><b>5,994</b></font></p>
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="bottom" width="70%" bgcolor="#EEEEEE"><font
        size="1"><b>End of year</b></font></td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>34,480</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>31,264</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
        <td valign="bottom" width="8%" bgcolor="#EEEEEE"><p
        align="right"><font size="1"><b>37,258</b></font></p>
        </td>
        <td valign="bottom" width="1%" bgcolor="#EEEEEE">&nbsp;</td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="80%">
    <tr>
        <td valign="bottom" width="70%">&nbsp;</td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
        <td valign="bottom" width="1%">&nbsp;</td>
        <td valign="bottom" width="9%"><hr size="1" noshade
        color="#000000">
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p>&nbsp;</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc">Table
of Contents</a></h5>

<p><font size="3"><strong>Footnotes Item 1-15</strong></font></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%"><a name="1"><font size="2">(1)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">For a
        definition of margin see &quot;Glossary&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(2)"><font size="2">(2)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">From 1991 to
        2002 to DeGolyer and MacNaughton, from 2003 also to Ryder
        Scott.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(3)"><font size="2">(3)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">In PSAs the
        national oil company awards the execution of exploration
        and production activities to the international oil
        company (contractor). The contractor bears the mineral
        and financial risk of the initiative and, when
        successful, recovers capital expenditure and costs
        incurred in the year (cost oil) by means of a share of
        production. This production share varies along with
        international oil prices. In certain PSAs changes in
        international oil prices affect also the share of
        production to which the contractor is entitled in order
        to remunerate its expenditure (profit oil).</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(4)"><font size="2">(4)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Of these, 5
        are owned through affiliates for initiatives in Saudi
        Arabia, Russia and Spain.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(5)"><font size="2">(5)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Of these
        27,421 square kilometers are owned through affiliates for
        initiatives in Saudi Arabia, Russia and Spain.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(6)"><font size="2">(6)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Two of these
        are not yet operational.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(7)"><font size="2">(7)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Eni agreed
        with the Antitrust Authority to sell a total volume of
        9.2 billion cubic meters of natural gas (2.3 billion
        cubic meters/year) in the four thermal years from October
        1, 2004 to September 30, 2008 at the Tarvisio entry point
        into the Italian network.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(8)"><font size="2">(8)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">In accordance
        with Article 19, paragraph 4 of Legislative Decree No.
        164/2000, the volumes of natural gas consumed in
        operations by a company or its subsidiaries are excluded
        from the calculation of ceilings for sales to end
        customers and from volumes input into the Italian network
        to be sold in Italy.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(9)"><font size="2">(9)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">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 imported or produced from non renewable
        sources exceeding 100 gigawatts. Calculations are made on
        total amounts net of co-generation and own consumption.
        This obligation can be met also by purchasing volumes or
        rights from other producers employing renewable sources
        (the so called &quot;green certificates&quot;) to cover
        all or part of such 2% share. Legislative Decree No.
        387/2003 established that from 2004 to 2006 the minimum
        amount of electricity from renewable sources to be input
        in the grid in the following year be increased by 0.35%
        per year. The Minister of Productive Activities, with
        decrees issued in consent with the Minister of the
        Environment, will define further increases for the
        2007-2009 and 2010-2012 periods.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="10"><font size="2">(10)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">The Refining
        &amp; Marketing segment purchased approximately 70% of
        the Exploration &amp; Production segment&#146;s oil and
        condensate production and resold on the market those
        crudes and condensates that are not suited to processing
        in its own refineries due to their characteristics or
        geographic area.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(11)"><font size="2">(11)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Other
        floating production units are semi-submersible platforms,
        tension leg platforms and submersible pipe alignment
        rigs.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(12)"><font size="2">(12)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">For a
        discussion of leverage and a reconciliation with the most
        directly comparable GAAP financial measure, see
        &quot;Liquidity and capital resources &#150; Financial
        conditions&quot; below.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(13)"><font size="2">(13)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">This
        definition applies to the term margin whenever used in
        this section.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(14)"><font size="2">(14)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">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></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(15)"><font size="2">(15)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Difference
        between the current period cost of products sold and the
        cost deriving from the application of the weighted
        average cost method in the evaluation of inventories.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(16)"><font size="2">(16)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Excluding
        loans directed to specific capital expenditure projects
        in the Exploration &amp; Production and Gas &amp; Power
        segments, whose financial charges are recognized as an
        increase of the relevant capital goods.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(17)"><font size="2">(17)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">In fiscal
        year 2003, Stoccaggi Gas Italia, which in 2001 received a
        contribution-in-kind of natural gas storage assets from
        Eni SpA and Snam SpA, applied Law No. 448 of December 28,
        2001, that allows companies receiving
        contributions-in-kind of assets to align the taxable
        value of these assets to the higher book value by paying
        a 9% special rate tax instead of the 34% statutory tax
        rate. Therefore in Eni&#146;s 2003 consolidated financial
        statements a deferred tax asset of euro 287 million (net
        of the special rate tax of euro 154 million) was
        recognized on the temporary difference between the
        taxable value and the book value of these assets. See
        &quot;2003 Annual Report on Form 20-F - Item 5 Operating
        and financial review and prospects - Results of
        operations, under the caption Income Taxes&quot;. On that
        occasion, the deferred tax asset arising from the
        temporary difference between the taxable value and the
        book value of natural gas volumes held in storage (euro
        696 million) was not recognized because its
        recoverability was not considered reasonably certain,
        given the fact that Law No. 170 of 1974 did not establish
        limitations to the renewal of natural gas storage
        concessions. As a matter of fact Italian GAAP state that
        no deferred tax asset can be recognized unless there
        exists a reasonable degree of certainty about its future
        recoverability. On the contrary the newly enacted Law No.
        239 of August 23, 2004 establishes a limit to the renewal
        of natural gas storage concessions; in particular Article
        1 paragraph 61 states: &quot;holders of natural gas
        underground storage concessions are entitled to no more
        than two renewals, each lasting ten years, on condition
        that such persons carry out storage programs and all
        other obligations arising from the concession&quot;. On
        this basis in 2004 accounts a deferred tax asset was
        recognized of euro 259 million.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(18)"><font size="2">(18)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">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></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(19)"><font size="2">(19)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Include own
        consumption and Eni&#146;s share of sales of affiliates.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(20)"><font size="2">(20)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Taking into
        account the later conferral of assets to Eni&#146;s
        subsidiary Snam Rete Gas SpA, the timing difference was
        considered analogous to that deriving from the
        cancellation of intra-group profits; under Italian GAAP
        the adopted 19% rate is equal to taxes paid by the
        conferring entity, not to the taxes recoverable by the
        receiving entity, Snam Rete Gas SpA.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(21)"><font size="2">(21)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">The term
        &quot;reversal&quot; means the charging to income
        statement of the provisions for deferred tax assets made
        in previous periods, due to the cancellation of the
        timing difference that determined them due, e.g., to the
        charging to income statement of technical-economic
        amortization after the completion of the depreciation
        allowed by fiscal laws or the fiscal recognition of
        expense previously recorded under the undeductible
        reserve for contingent liabilities.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(22)"><font size="2">(22)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Article 1,
        paragraph 61 states: &quot;Holders of natural gas
        underground storage concessions cannot benefit of more
        than 2 renewals lasting 10 years if they complied with
        their storage plans and all the duties included in the
        said concessions&quot;. Formerly Law 170/1970 stated:
        &quot;concessions can be renewed for 10 year
        periods&quot;.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(23)"><font size="2">(23)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Given the
        uncertainties related to their payment date, employee
        termination indemnities are considered as a defined
        benefit plan.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(24)"><font size="2">(24)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">Actuarial
        assumptions concern, among other things, the following
        variables: (i) level of future salaries; (ii) death rates
        of employees; (iii) turn-over rate of employees; (iv)
        share of participants with successors entitled to
        benefits (e.g. spouses and children); (v) for medical
        assistance plans, frequency of requests for reimbursement
        and future changes in medical costs; and (vi) interest
        rates.</font></td>
    </tr>
    <tr>
        <td valign="top" width="3%"><a name="(25)"><font size="2">(25)</font></a></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%"><font size="2">For a
        discussion of the usefulness of leverage and its
        reconciliation with the most directly comparable GAAP
        measure, see &quot;Item 5 &#150; Financial
        Condition&quot;.</font></td>
    </tr>
</table>

<p>&nbsp;</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="By Laws">Table of Contents</a></h5>

<p><b>Exhibit 1</b></p>

<p align="center"><b>Eni S.p.A. By-laws</b></p>

<blockquote>
    <p><b><i>Part I - Establishment - Name - Registered Office
    and Duration of the Company</i></b></p>
</blockquote>

<p><b>ARTICLE 1</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">1.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">&quot;Eni S.p.A.&quot;
        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.</td>
    </tr>
</table>

<p><b>ARTICLE 2</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">2.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">The registered head office
        of the company is located in Rome, Italy and the
        company's two branches in San Donato Milanese (MI).</td>
    </tr>
    <tr>
        <td valign="top" width="3%">2.2</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">Main representative offices,
        affiliates and branches may be established and/or wound
        up in Italy or abroad in compliance with the law.</td>
    </tr>
</table>

<p><b>ARTICLE 3</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">3.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 4</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">4.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 5</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">5.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">The company capital is euro
        4,004,425,176.00 (four billion four million four hundred
        and twenty-five thousand one hundred and seventy-six)
        represented by 4,004,425,176 (four billion four million
        four hundred and twenty-five thousand one hundred and
        seventy-six) shares of ordinary stock with a nominal
        value of euro 1 (one) each.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">5.2</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">Shares may not be split up
        and each share is entitled to one vote.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">5.3</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">The fact of being a
        Shareholder in itself constitutes approval of these
        by-laws.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">5.4</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">5.5</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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
        &quot;Regulations of the 2002 Plan of Assignation of Eni
        S.p.A. shares to be issued pursuant to Article 2349 of
        the Civil Code&quot;.</td>
    </tr>
</table>

<p><b>ARTICLE 6</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">6.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">6.2</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">Pursuant to Article 2,
        paragraph 1 of Law Decree 332 of May 31, 1994, converted
        with amendments into Law 474 of July 30, 1994, as
        modified by Article 4, Paragraph 227, of Law December 24,
        2003 No. 350, the Minister of Economy and Finance retains
        the following special powers to be exercised in agreement
        with the Minister of Productive Activities and according
        to the criteria contained in the Decree issued by the
        President of the Council of Ministers on June 10, 2004:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">a)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">opposition with respect to
        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
        &#150; as per Decree issued by the Minister of Treasury
        on October 16, 1995 &#150; are meant those representing
        at least 3% of share capital with the right to vote at
        the ordinary shareholders' meeting. The opposition is
        expressed within ten days of the date of the notice to be
        filed by the Board of Directors at the time request is
        made for registration in the Shareholders' Register if
        the Minister considers that such an acquisition may
        prejudice the vital interests of the Italian State. Until
        the ten-day term is not lapsed, the voting rights and the
        non-asset linked rights connected with the shares
        representing a material shareholding may not be
        exercised. If the opposition power is exercised, through
        a duly motivated act in connection with the prejudice
        that may be caused by the operation to the vital
        interests of the Italian State, the transferee may not
        exercise the voting rights and the other non-asset linked
        rights connected with the shares representing a material
        shareholding and must sell said shares within one year.
        Failing to comply, the law court, upon request of the
        Minister of Economy and Finance, will order the sale of
        the shares representing a material shareholding according
        to the procedures set forth in Article 2359-ter of the
        Civil Code. The act through which the opposition power is
        exercised may be sued by the transferee before the
        Regional Administrative Court of Latium within sixty days
        as of its issue;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">b)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">opposition with respect to
        the subscription of Shareholders' pacts or agreements as
        per Article 122 of Legislative Decree No. 58 of February
        24, 1998, involving &#150; as per Decree issued by the
        Minister of Treasury on October 16, 1995 &#150; at least
        3% of the share capital with the right to vote at
        ordinary shareholders' meetings. In order to allow the
        exercise of the above mentioned opposition power, Consob
        notifies the Minister of Economy and Finance of the
        relevant pacts or agreements communicated to it pursuant
        to the aforementioned Article 122 of Legislative Decree
        No. 58 of February 24, 1998. The opposition power may be
        exercised within ten days as of the date of the notice by
        Consob. Until the ten-day term is not lapsed, the voting
        right and the other non-asset linked rights connected
        with the shares held by the shareholders who have
        subscribed the above mentioned pacts or agreements may
        not be exercised. If the opposition power is exercised
        through the issue of an act that shall be duly motivated
        in consideration of the prejudice that may be caused by
        said pacts or agreements to the vital interests of the
        Italian State, the shareholders pacts or agreements shall
        be null and void. If in the shareholders&#146; meetings
        the shareholders who have signed shareholders&#146; pacts
        or agreements behave as if those pacts or agreements
        disciplined by Article 122 of Legislative Decree No. 58
        of February 24, 1998 were still in effect, the
        resolutions approved with their vote, if determining for
        the approval, may be sued. The act through which the
        opposition power is exercised may be sued by the
        shareholders who joined the above mentioned pacts or
        agreements before the Regional Administrative Court of
        Latium within sixty days as of its issue;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">c)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">veto power with respect to
        resolutions to dissolve the company, to transfer the
        business, to merge, to demerge, to transfer the company's
        registered office abroad, to change the company objects
        and to amend the by-laws cancelling or modifying the
        powers indicated in this Article. The act through which
        the veto power is exercised shall be duly motivated in
        consideration of the prejudice the related resolution may
        cause to the vital interests of the Italian State and may
        be sued by the dissenting Shareholders before the
        Regional Administrative Court of Latium within sixty days
        as of its issue;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">d)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">appointment of one Board
        member with no voting rights. Should such appointed
        Director lapse, the Minister of Economy and Finance in
        agreement with the Minister of Productive Activities will
        appoint his substitute.</td>
    </tr>
</table>

<p><b>ARTICLE 7</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">7.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 8</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">8.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 9</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">9.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">The shareholders' meeting
        may resolve to increase the company capital and establish
        terms, conditions and means thereof.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">9.2</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 10</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">10.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Payments on shares are
        requested by the Board of Directors in one or more times.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">10.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 11</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">11.1</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">The company may issue bonds,
        including convertibles and warrant bonds in compliance
        with the law.</td>
    </tr>
</table>

<p><b>ARTICLE 12</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">12.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">12.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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
        tFinancial Statements.</td>
    </tr>
</table>

<p><b>ARTICLE 13</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">13.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">13.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 14</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">14.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">14.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Chairman of the Meeting
        has to assure the regularity of written proxies and, in
        general, the right to attend the Meeting.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">14.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The right to vote may also
        be exercised by mail according to the laws and
        regulations in force concerning this matter.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">14.4</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Eni S.p.A. shareholders'
        meetings are disciplined by Eni S.p.A.'s shareholders'
        meeting Regulation approved by the ordinary shareholders'
        meeting.</td>
    </tr>
</table>

<p><b>ARTICLE 15</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">15.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">15.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 16</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">16.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The ordinary shareholders'
        meeting decides on all the matters for which it is
        legally entitled and authorises the transfer of the
        business.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">16.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">16.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Resolutions of the Meeting
        taken in compliance with the law and these by-laws are
        binding for all Shareholders even if absent or
        dissenting.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">16.4</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The minutes of ordinary
        meetings must be signed by the Chairman and the
        Secretary.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">16.5</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The minutes of extraordinary
        meetings must be drawn up by a notary public.</td>
    </tr>
</table>

<p><b>ARTICLE 17</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">17.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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. The Minister
        of Economy and Finance in agreement with the Minister of
        Productive Activities may appoint another member, with no
        voting rights, pursuant to Article 6, second Paragraph,
        letter d), of the by-laws.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">17.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">17.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Each person entitled to vote
        may vote for a candidate list only.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Board members will be
        elected in the following manner:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">a)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">b)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">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;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">c)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">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.</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">17.4</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">17.5</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">&nbsp;</td>
    </tr>
</table>

<p><b>ARTICLE 18</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">18.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">If the shareholders' meeting
        has not appointed a Chairman, the Board will elect one of
        its members. The Director appointed pursuant to Article
        6, second Paragraph, letter d) of the by-laws cannot be
        appointed as Chairman.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">18.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Board, at the Chairman's
        proposal, appoints a Secretary, who need not belong to
        the company.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">&nbsp;</td>
    </tr>
</table>

<p><b>ARTICLE 19</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">19.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">19.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">19.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 20</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">20.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Chairman of the Board
        or, in his absence, the oldest Board member in attendance
        chairs the Meeting.</td>
    </tr>
</table>

<p><b>ARTICLE 21</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">21.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">A majority of members of the
        Board having a voting right must be present for a Board
        meeting to be valid.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">21.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Resolutions are taken with
        the majority of votes of the Board members having a
        voting right present; should votes be equal, the person
        who chairs the Meeting has a casting vote.</td>
    </tr>
</table>

<p><b>ARTICLE 22</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">22.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">22.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 23</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">23.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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 by-laws reserve for the shareholders' meeting.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">23.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Board of Directors is
        allowed to resolve on the following matters:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">-</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">the merger and the demerger
        of at least 90% directly owned subsidiaries;</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">-</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">the establishment and
        winding up of branches;</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">-</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">the amendment to the by-laws
        in order to comply with the current legislation.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">&nbsp;</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">23.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 24</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">24.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Board of Directors
        delegates its powers to one of its members with the
        exception of the Director appointed pursuant Article 6,
        second Paragraph, letter d) of the by-laws, 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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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 to other members of the Board of
        Directors with the exception of the Director appointed
        pursuant Article 6, second Paragraph, letter d) of the
        by-laws. 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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 25</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">25.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 26</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">26.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 27</b></p>

<table border="0" cellspacing="0" width="623">
    <tr>
        <td valign="top" width="5%">27.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Chairman:</td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">a)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">represents the company
        according to the provisions of Article 25.1;</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">b)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">chairs the shareholders'
        meeting pursuant to Article 15.1;</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">c)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">convenes and chairs meetings
        of the Board of Directors pursuant to Articles 19.1 and
        20.1;</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">d)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">ascertains whether Board
        resolutions have been implemented;</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="3%">e)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="88%">exercises the powers
        delegated to him by the Board of Directors pursuant to
        Article 24.1 of these by-laws.</td>
    </tr>
</table>

<p><b>ARTICLE 28</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">28.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Pursuant to said Ministerial
        Decree, the sectors strictly connected with those of
        interest of the Company are the engineering and
        geological sectors.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">28.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The effective Auditors 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 shall apply.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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 not
        less than three years.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Three effective Auditors and
        one alternate Auditor will be drawn from the list that
        obtains 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. The procedure described in this last Article
        shall be applied to each section of the lists involved
        separately.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The shareholders&#146;
        meeting appoints the Chairman of the Board of Statutory
        Auditors among the effective Auditors appointed.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">To appoint effective or
        alternate Auditors for any reason not elected according
        to the terms of the aforementioned procedure, the
        shareholders' meeting will resolve with the majorities
        prescribed by the law.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">28.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">Retiring Auditors may be
        reelected.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">28.4</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
</table>

<p><b>ARTICLE 29</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">29.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The business year ends on
        December 31 every year.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">29.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">29.3</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Board of Directors may,
        during the course of the business year, pay interim
        dividends to the Shareholders.</td>
    </tr>
</table>

<p><b>ARTICLE 30</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">30.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">&nbsp;</td>
    </tr>
</table>

<p><b>ARTICLE 31</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">31.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">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.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">&nbsp;</td>
    </tr>
</table>

<p><b>ARTICLE 32</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">32.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">For matters not expressly
        regulated by these by-laws, the norms of the Civil Code
        and specific laws concerning these matters will apply.</td>
    </tr>
    <tr>
        <td valign="top" width="5%">32.2</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The Ministry of Economy and
        Finance 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.</td>
    </tr>
</table>

<p><b>ARTICLE 33</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="5%">33.1</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="94%">The company retains all
        assets and liabilities held before its transformation by
        the public law agency Ente Nazionale Idrocarburi.</td>
    </tr>
</table>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Exibit 8"><font size="2">.</font>Table of Contents</a></h5>

<p><b>Exibit 8</b></p>

<p align="center"><b>List of Eni's subsidiary for year 2004</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="61%"><strong>Subsidiary</strong></td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%"><strong>Country of
        Incorporation</strong></td>
        <td valign="top" width="12%"><p align="right"><strong>Eni's
        interest (%)</strong></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Exploration &amp; Production</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Caspian Sea BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Energy and Natural
        Resources (Nigeria) Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Karachaganak BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Oil Ecuador BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni A E P Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Algeria Exploration BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Algeria Ltd S&#224;rl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Luxembourg)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Algeria Production BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Ambalat Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni America Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Angola Exploration BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Angola Production BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni AOG Ltd (in liquidation)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni AUL Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Australia BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Australia Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni BBI Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni BB Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni BB Petroleum Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni BB Pipeline Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Birch Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Bukat Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni China BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Congo SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Congo)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Croatia BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Daci&#243;n BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Deepwater Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Denmark BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Elgin/Franklin Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Energy BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Exploration BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Finance Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Forties Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Ganal Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Grand Maghreb BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Guibsen Exploration BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Indonesia Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni International NA NV
        S&#224;rl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Luxembourg)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Investments Plc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Iran BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Ireland BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Jpda 03-13 Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Krueng Mane Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Lasmo Plc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Liverpool Bay Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni LNS Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Malagot Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Marketing Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Mediterranea Idrocarburi
        SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Mep Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Middle East Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Morocco BV </td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Muara Bakau BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Norge AS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Norway)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni North Africa BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Oil Algeria Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Oil do Brasil SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Brazil)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Oil &amp; Gas Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Oil Holdings BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Oil US Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Pakistan Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Pakistan (M) Ltd S&#224;rl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Luxembourg)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Papalang Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Petroleum BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Petroleum Co Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Petroleum Exploration Co
        Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Popodi Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Rapak Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Securities Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Sesulu Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni TNS Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Trading BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Trinidad and Tobago
        Exploration BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Trinidad and Tobago Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Trinidad &amp; Tobago)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni TTO Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Tunisia Bek BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Tunisia BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni UHL Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni UKCS Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni UK Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni ULT Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni ULX Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni USA Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni US Operating Co Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Venezuela BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Ventures Plc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Enstar Petroleum Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Canada)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Ieoc Exploration BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Ieoc Production BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Lasmo Oil Development
        (Canada) Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Canada)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Lasmo Sanga Sanga Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Bermuda)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Lasmo (UPET) Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Canada)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Nigerian Agip Exploration
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Nigerian Agip Oil Co Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Pennant Insurance Co Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Bermuda)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Secab Niugini Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Papua New Guinea)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Societ&#224; Petrolifera
        Italiana SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.96</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Soci&#233;t&#233; Italo Tunisienne
        d&#146;Exploitation P&#233;troli&#232;re SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Tunisia)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Stoccaggi Gas Italia SpA -
        Stogit SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Unimar Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Gas &amp; Power</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Acquedotto di Savona SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">67.05</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Acquedotto Vesuviano SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Adriaplin Podjetje za
        distribucijo zemeljskega plina d.o.o. Ljubljana</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Slovenia)</td>
        <td valign="top" width="12%"><p align="right">51</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Compagnia Napoletana di
        Illuminazione e Scaldamento col Gas SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.69</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Distribuidora de Gas Cuyana
        SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Argentina)</td>
        <td valign="top" width="12%"><p align="right">45.6</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Acqua Campania SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">49.05</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Gas &amp; Power CH SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Switzerland)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Gas &amp; Power LNG
        Australia BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni G &amp; P Trading BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Gas Trading Europe BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">EniPower SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">EniPower Trading SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">EniPower Trasmissione SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Fiorentina Gas Clienti SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Fiorentina Gas SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">51.03</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Gas Brasiliano Distribuidora
        SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Brazil)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">GNL Italia SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">50.06</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Greenstream BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">75</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Inversora de Gas Cuyana SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Argentina)</td>
        <td valign="top" width="12%"><p align="right">76</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Italgas Hellas SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">LNG Shipping SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Napoletana Gas Clienti SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.69</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Partecipazioni Industriali
        SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Slim Sicilia - Societ&#224;
        Lavori Impianti Metano Sicilia SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snam Rete Gas SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">50.06</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Societ&#224; Azionaria per la
        Condotta di Acque Potabili</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">67.05</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Societ&#224; EniPower Ferrara
        Srl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">51</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Societ&#224; Italiana per il Gas
        pA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Soci&#233;t&#233; de Service du
        Gazoduc Transtunisien SA - Sergaz SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Tunisia)</td>
        <td valign="top" width="12%"><p align="right">66.67</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Soci&#233;t&#233; pour la
        Construction du Gazoduc Transtunisien SA - Scogat SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Tunisia)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Tig&#225;z Tisz&#225;nt&#250;li
        G&#225;zszolg&#225;ltat&#243; R&#233;szv&#233;nyt&#225;rsas&#225;g</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Hungary)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Tig&#225;z 2 F&#246;ldg&#225;z Eloszt&#243;
        &#233;s K&#246;z&#252;zemi Szolg&#225;ltat&#243; Kft</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Hungary)</td>
        <td valign="top" width="12%"><p align="right">44.65</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Trans Tunisian Pipeline Co
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Jersey)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Refining &amp; Marketing</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Austria GmbH</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Austria)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Benelux BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Bratislava Sro</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Slovakia)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Cesk&#225; Republika Sro</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Czech Republic)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Deutschland GmbH</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Germany)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Ecuador SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Ecuador)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Espa&#241;a SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Spain)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Fran&#231;aise SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">AgipFuel SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Hungaria
        R&#233;szv&#233;nyt&#225;rsas&#225;g</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Hungary)</td>
        <td valign="top" width="12%"><p align="right">99.41</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Lubricantes SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Argentina)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Lubricants (Pty) Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(South Africa)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Pann&#243;nia Kereskedelmi
        Korl&#225;tolt Felel&#245;ss&#233;g&#251; T&#225;rsas&#225;g</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Hungary)</td>
        <td valign="top" width="12%"><p align="right">99.41</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Portugal - Combustiveis
        SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">AgipRete SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Romania SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Romania)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Schmiertechnik GmbH</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Germany)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Slovenija Doo</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Slovenia)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Slovensko Spol. Sro (ex
        Agip Slovensko Sro)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Slovakia)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agip Suisse SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Switzerland)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">American Agip Co Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Big Bon Distribuzione SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Costiero Gas Livorno SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">65</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Ecofuel SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Portugal Investment SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Esain SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Ecuador)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Intermode Trasporti
        Logistica Integrata SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Italiana Petroli SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Petrolig Srl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">70</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Petroven Srl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">68</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Praoil Oleodotti Italiani
        SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Raffineria di Gela SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Petrochemicals</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Dunastyr Polisztirolgy&#225;rt&#243;
        R&#233;szv&#233;nyt&#225;rsas&#225;g</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Hungary)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa Americas Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa Benelux SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Belgium)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa Distribution
        France SAS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa Distribution
        SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Switzerland)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa Elastom&#232;res
        France SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa France Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa GmbH</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Germany)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa Ib&#233;rica SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Spain)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Polimeri Europa UK Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Oilfield Services
        Construction and Engineering</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Oilfield Services and
        Construction</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Boscongo SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Congo)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Bos Investment Ltd (ex
        Bouygues Offshore Ltd)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Bos Italia Srl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">BOS Shelf Ltd Society</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Azerbaijan)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Bos - UIE Ltd (ex Bouygues
        Offshore - UIE Ltd)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Camom Gesellschaft fur
        Instandhaltung und Montagen GmbH</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Germany)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Camom SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Canalisations, Tuyauteries
        Soud&#233;es SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.94</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Consorzio Saipem Energy
        International - Tecnomare</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">50.05</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Dalia Floater Angola Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">11.81</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Delong Hersent - Estudos,
        Constru&#231;&#245;es Maritimas <br>
        e Participa&#231;&#245;es, Unipessoal Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Energy Maintenance Services
        SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">71.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Entreprise Nouvelle
        Marcellin SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Er Sai Caspian Contractor
        Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Kazakhstan)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">ERS - Equipment Rental &amp;
        Services BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">European Marine Contractors
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">European Marine Investments
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">European Maritime Commerce
        BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">FPSO Firenze Produ&#231;&#227;o</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">FPSO Mystras (Nigeria) Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">FPSO Mystras - Produ&#231;&#227;o de
        Petr&#242;leo Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Global Petroprojects
        Services AG</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Switzerland)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Guangdong Contractor Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">25.77</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Hazira Cryogenic Engineering
        &amp; Construction Management Private Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(India)</td>
        <td valign="top" width="12%"><p align="right">23.57</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Hazira Marine Engineering
        &amp; Construction Management Private Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(India)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Intermare Sarda SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Katran-K Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Russia)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Lipardiz - Constru&#231;&#227;o de
        Estruturas Maritimas Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Moss Arctic Offshore AS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Norway)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Moss Maritime AS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Norway)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Moss Maritime Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Moss Offshore AS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Norway)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Nigerian Services &amp;
        Supply Co Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Offshore Design Engineering
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Petrex SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Peru)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Petromar Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Angola)</td>
        <td valign="top" width="12%"><p align="right">30.07</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">PT Saipem Indonesia</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Indonesia)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">PT Sofresid Indonesia Ll</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Indonesia)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saibos Akogep Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">30.07</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saibos Constru&#231;&#245;es
        Maritimas Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saibos Fze</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(United Arab Emirates)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saibos SAS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipar Drilling Co BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Aban Drilling Co
        Private Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(India)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Asia Sdn Bhd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Malaysia)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Contracting Algerie
        SpA (ex Saipem Algerie SpA)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Algeria)</td>
        <td valign="top" width="12%"><p align="right">42.93</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Contracting (Nigeria)
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">41.67</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem do Brasil Servi&#231;&#245;s
        de Petroleo Ltda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Brazil)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Energy International
        SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Holding France SAS</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem India Project
        Services Ltd<br>
        (ex International Development Process and Engineering
        Ltd)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(India)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem International BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Luxembourg SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Lussemburgo)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem (Malaysia) Sdn Bhd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Malaysia)</td>
        <td valign="top" width="12%"><p align="right">17.18</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Mediterranean
        Services Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Croatia)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem (Nigeria) Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Nigeria)</td>
        <td valign="top" width="12%"><p align="right">38.41</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem - Perfura&#231;&#245;es e
        Constru&#231;&#245;es Petroliferas America do Sul Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem (Portugal) Com&#233;rcio
        Mar&#237;timo, Sociedade Unipessoal Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem (Portugal) - Gest&#227;o
        de Participa&#231;&#245;es SGPS Sociedade Unipessoal SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem Services SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Belgium)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saipem UK Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">SAIR Constru&#231;&#245;es Mecanicas
        de Estruturas Maritimas Lda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Portugal)</td>
        <td valign="top" width="12%"><p align="right">36.94</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sas Port de Tanger</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Saudi Arabian Saipem Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Saudi Arabia)</td>
        <td valign="top" width="12%"><p align="right">25.77</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">SB Construction and Maritime
        Services BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Services et Equipements
        Gaziers et Petroliers SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.85</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Servicios de Constru&#231;iones
        Caucedo SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Dominical Republic)</td>
        <td valign="top" width="12%"><p align="right">21.35</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Soci&#233;t&#233; de Construction
        d&#146;Oleoducs Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.85</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Soci&#233;t&#233; Nouvelle Technigaz
        SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.94</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Soci&#233;t&#233; pour la
        Realisation du Port de Tanger Mediterran&#233;e</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Morocco)</td>
        <td valign="top" width="12%"><p align="right">14.32</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sofresid Engineering SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sofresid SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sonsub A/S</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Norway)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sonsub Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sonsub International Pty Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Australia)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sonsub Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sonsub SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Star Gulf Free Zone Co</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(United Arab Emirates)</td>
        <td valign="top" width="12%"><p align="right">42.95</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Starstroi Llc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Russia)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Stts Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">25.77</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Tbe Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Egypt)</td>
        <td valign="top" width="12%"><p align="right">30.06</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Tss Dalia Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Egypt)</td>
        <td valign="top" width="12%"><p align="right">11.81</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Upstream Constructors
        International Fzco</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(United Arab Emirates)</td>
        <td valign="top" width="12%"><p align="right">21.48</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Engineering</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Andromeda Consultoria
        Tecnica e Representa&#231;&#245;es Ltda</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Brazil)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">ASG Scarl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">55.34</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">CEPAV (Consorzio Eni per
        l&#146;Alta Velocit&#224;) Uno</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">50.21</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Consorzio Snamprogetti Abb
        Lg Chemicals</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">CMS&amp;A Wll</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Qatar)</td>
        <td valign="top" width="12%"><p align="right">20</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Modena Scarl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">59.33</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Rodano Consortile Scarl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">53.57</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Rpco Enterprises Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Cyprus)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti France S&#224;rl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the United Kingdom)</td>
        <td valign="top" width="12%"><p align="right">99.99</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Lummus Gas Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Malta)</td>
        <td valign="top" width="12%"><p align="right">99</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Management
        Services SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Switzerland)</td>
        <td valign="top" width="12%"><p align="right">99.99</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Netherlands BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Saudi Arabia
        Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Saudi Arabia)</td>
        <td valign="top" width="12%"><p align="right">74.99</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Services SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti Sud SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Snamprogetti USA Inc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(USA)</td>
        <td valign="top" width="12%"><p align="right">99.99</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Spf - Tkp Omifpro Snc</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(France)</td>
        <td valign="top" width="12%"><p align="right">50</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Other Activities</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Agenzia Giornalistica Italia
        SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Ambiente SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Corporate University SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">EniTecnologie SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Ing. Luigi Conti Vecchi SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Marghera Servizi Industriali
        Srl</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Servizi Aerei SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sieco SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Syndial SpA - Attivit&#224;
        Diversificate</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Tecnomare - Societ&#224; per lo
        Sviluppo delle Tecnologie Marine SpA<br>
        (ex Tecnomare SpA)</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">57.15</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Corporate and financial
        copanies</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">&nbsp;</td>
        <td valign="top" width="12%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni Coordination Center SA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Belgium)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni International Bank Ltd</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Bahamas)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Eni International BV</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(the Netherlands)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Societ&#224; Finanziamenti
        Idrocarburi - Sofid - SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.61</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Societ&#224; Finanziaria Eni SpA
        - Enifin</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">100</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Padana Assicurazioni SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.72</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Serfactoring SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">48.81</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Serleasing SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.61</p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="61%">Sofidsim - Societ&#224; di
        Intermediazione Mobiliare SpA</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="24%">(Italy)</td>
        <td valign="top" width="12%"><p align="right">99.61</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="Code of Ethics">Table of Contents</a></h5>

<p><b>Exhibit 11</b></p>

<p align="center"><b>Code of Ethics</b></p>

<p align="center">Approved by the Board of Directors of Eni SpA
on October 21, 1998 and on July 31, 2003 (Addendum)</p>

<p align="center">&nbsp;</p>

<p>CONTENTS</p>

<p>Addendum</p>

<p>Foreword </p>

<p><b>1. General Principles</b></p>

<p>1.1 To whom the Code applies</p>

<p>1.2 Duties of Eni5</p>

<p>1.3 Duties of Employees</p>

<p>1.4 Additional Duties of Managers</p>

<p>1.5 Applicability of the Code to Third Parties</p>

<p>1.6 Reference, Implementation and Control Functions
(Guarantors)</p>

<p>1.7 Contractual Value of the Code</p>

<p><b>2. Business Conduct</b></p>

<p>2.1 Relations with Customers</p>

<p>2.2 Relations with Suppliers</p>

<p><b>3. Transparency of Accounting and Internal Controls</b></p>

<p>3.1 Accounting Records</p>

<p>3.2 Internal Controls</p>

<p><b>4. Personnel Policies</b></p>

<p>4.1 Human Resources</p>

<p>4.2 Harassment in the Workplace</p>

<p>4.3 Abuse of Alcohol or Drugs</p>

<p>4.4 Smoking</p>

<p><b>5. Health, Safety and the Environment</b></p>

<p><b>6. Confidentiality</b></p>

<p><b>7. External Relations</b></p>

<p>7.1 Relations with Public Institutions</p>

<p>7.2 Relations with Political Organizations and Trade Unions</p>

<p>7.3 Relations with the Media</p>

<p>7.4 Presentation of Eni Objectives, Activities, Results and
Points of View</p>

<p>7.5 &quot;Non Profit&quot; Initiatives</p>

<p align="center"><b>ADDENDUM</b></p>

<p>In conducting its activities as an international company, Eni
refers to the protection of human and labor rights, of safety and
the environment, as well as to the system of values and
principles concerning transparency and integrity, energy
efficiency and sustainable development, as outlined by
international institutions and conventions.</p>

<p>In this respect Eni reaffirms its commitment to operate within
the framework of the United Nations Universal Declaration of
Human Rights, the Fundamental Conventions of the ILO &#150;
International Labour Organization &#150; and the OECD Guidelines
on Multinational Enterprises, with particular reference to the
areas concerning the protection of labor rights, freedom of
association, the rejection of all forms of discrimination, forced
and child labor, corruption, the safeguarding of dignity, health
and safety at the workplace, the respect for natural
biodiversities and the protection of the environment.</p>

<p>Moreover, Eni is committed to actively contribute to promoting
the quality of life and the socio-economic development of the
communities where the Group operates and to the development of
their human resources and capabilities, while conducting its
business activities in internal and external markets according to
standards that are compatible with fair commercial practice.</p>

<p>All of Eni's activities are carried out in the awareness of
the Social Responsibility that the Group has towards all of its
stakeholders (employees, shareholders, customers, suppliers,
communities, commercial and financial partners, institutions,
industry associations, trade unions&#133;), in the belief that
the capacity for dialogue and interaction with civil society
constitutes an important asset for the company.</p>

<p>Therefore, Eni is committed to spreading an awareness of its
values and principles both within and outside the Group and to
implementing adequate control procedures.</p>

<p align="center"><b>FOREWORD</b></p>

<p>Eni<sup>1</sup> is an internationally oriented industrial
group which, because of its size and the importance of its
activities, plays a significant role in the marketplace and in
the economic development and welfare of the communities where it
is present.</p>

<p>Eni operates in many institutional, economic, political,
social and cultural environments in constant and rapid
development. Eni&#146;s activities must be performed in full
respect of the law, in fair competition, with honesty, integrity
and good faith, with due respect for the legitimate interests of
its customers, employees, shareholders, commercial and financial
partners and the communities where it is present. All those who
work in Eni are, without any distinction or exception whatsoever,
committed to respecting these principles in performing their
roles and responsibilities and to making sure that others respect
them. The conviction that one is acting in favor or to the
advantage of Eni can never, in any way, justify acts or behavior
that conflict with these principles.</p>

<p>Due to the complexity of the situations in which Eni operates,
it is important to define clearly the values that Eni accepts,
acknowledges and shares as well as the responsibilities assumed
by Eni inside and outside Eni itself. For this reason the present
Code of Practice (hereinafter called the &quot;Code&quot;) has
been produced. Respect of the Code by every Eni employee is of
paramount importance for the good functioning, reliability and
reputation of Eni; all of which are crucial factors for its
success.</p>

<p>Apart from fulfilling their general duties of loyalty,
fairness and the performance of their labor contract in good
faith, all Eni employees must refrain from acts that compete with
Eni and they must respect company rules and comply with the Code;
which compliance is also required under existing laws.<sup>2</sup>
</p>

<p>Each employee is expected to have full knowledge of the Code
and to contribute actively to its implementation and to report
any shortcomings. Eni undertakes to facilitate and promote
knowledge of the Code among its employees and to accept their
constructive contribution to the Code&#146;s contents. Any
behavior violating the letter and the spirit of the Code will be
punished according to the rules herein defined.</p>

<p>Eni will check compliance with the Code by providing suitable
information, prevention and control instruments and it shall
ensure transparency in all operations and conduct by taking
corrective measures if and as required.</p>

<p>The Code shall be brought to the attention of every person or
body having business relations with Eni.</p>

<p>&nbsp;</p>

<hr size="1" align="left" noshade width="18%">

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="2%"><font size="1">(1)</font></td>
        <td width="2%">&nbsp;</td>
        <td valign="top" width="96%"><font size="1">In the
        present Code &quot;Eni&quot; or &quot;Group&quot; mean
        Eni SpA and its subsidiaries as defined in Article 2359
        of the Italian Civil Code as well as other subsidiaries
        as defined in Article 26 of Legislative Decree n. 127 of
        April, 9, 1991.</font></td>
    </tr>
    <tr>
        <td valign="top"><font size="1">(2)</font></td>
        <td valign="top">&nbsp;</td>
        <td valign="top"><font size="1">&quot;Article 2104.
        Diligence of workers. Workers are expected to render
        diligently the services expected from them according to
        the nature of such services, the interests of the company
        and the higher interests of national production. They
        must also comply with the rules for work execution and
        discipline as set down by their employers and the
        superiors to whom they report.&quot;</font></td>
    </tr>
</table>

<p align="left" style="page-break-before:always">&nbsp;</p>

<p>&nbsp;</p>

<p><b>1. GENERAL PRINCIPLES</b></p>

<p><b>1.1 To whom the code applies</b></p>

<p>Moral integrity is a constant duty for any person working for
Eni and characterizes the conduct of its entire organization.</p>

<p>The rules of the Code are applicable to each and every Eni
employee without exception and to all those who work for the
achievement of Eni&#146;s objectives.</p>

<p>Eni&#146;s management has to comply with the rules of the Code
in the presentation of projects, and in actions and investments
aimed at increasing in the long-term the value of Eni assets,
managerial capability, technology, the return on investment for
shareholders, and the welfare of employees and the community at
large.</p>

<p>Members of the Board of Directors must bear in mind the
principles contained in the Code when determining corporate
objectives.</p>

<p>Company managers must be the first to give concrete form to
the values and principles contained in the Code, by assuming
responsibility for them both inside and outside the Group, and by
instilling trust, cohesion and a sense of team-work.</p>

<p>Eni employees shall not only respect existing applicable laws
but they are also expected to adjust their actions and conduct so
as to conform to the principles, objectives and commitments
contemplated in the Code.</p>

<p>The general conduct and any action, operation and negotiation
performed by Eni employees in the performance of their duties
shall be inspired by the highest principles of fairness,
completeness and transparency of information and legitimacy, both
in form and substance, as well as in clarity and truthfulness in
all accounting matters, as per existing and applicable laws and
internal regulations.</p>

<p>Eni shall actively and fully cooperate with public
Authorities, through its employees. </p>

<p>All in-house work shall be performed with the utmost care and
professional skill. Each employee must bring adequate skills and
expertise to the task assigned and always act in a way that shall
protect Eni&#146;s reputation.</p>

<p>Relationships between employees, at all levels, must be
characterized by fairness, cooperation, loyalty and mutual
respect.</p>

<p>In order to fully comply with the Code, each employee may
refer not only to his or her superior but may also contact
directly any internal body or office specifically designated for
the purpose.</p>

<p>&nbsp;</p>

<p><b>1.2 Duties of Eni</b></p>

<p>Through the establishment of specific internal bodies
(&quot;Guarantor&quot; and &quot;Committee for the Code of
Practice&quot;), Eni will:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">ensure the widest
        dissemination of the Code among its employees and
        partners;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">provide for further analyses
        and updating of the Code as required to meet evolving
        circumstances and laws;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">make available all the tools
        for understanding and clarifying the interpretation and
        the implementation of the Code;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">arrange for a careful
        evaluation to be carried out on any instances where the
        Code may have been violated;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">in the event of an
        acknowledged violation of the Code, it shall provide for
        an evaluation of the facts and, if necessary, the
        adoption of appropriate sanctions;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">ensure that no one may
        suffer any retaliation whatsoever for having provided
        information regarding possible violations of the Code or
        related laws.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p><b>1.3 Duties of employees</b></p>

<p>All employees are expected to know the regulations contained
in the Code and the relevant rules governing activities performed
in their respective functions.</p>

<p>Eni employees shall: </p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">refrain from all conduct
        contrary to such rules and regulations;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">consult their superior, or
        the Guarantor, whenever clarifications concerning the
        implementation of said rules are needed;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">immediately report to their
        superiors or to the Guarantor:</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">any fact that comes to their
        direct, or indirect, knowledge concerning a possible
        violation of such rules;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">any request they receive to
        violate such rules;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">cooperate with the relevant
        office or department in ascertaining any violations.</td>
    </tr>
</table>

<p>If, after notifying a supposed violation, an employee should
deem that the issue has not been fully investigated or feels that
he or she has been subject to retaliation, then the employee
shall be entitled to make a complaint to the Committee for the
Code of Practice.</p>

<p>Employees are not allowed to conduct personal investigations,
nor to exchange information, except to their superiors, the
Guarantor or the Committee for the Code of Practice.</p>

<p>&nbsp;</p>

<p><b>1.4 Additional duties of managers</b></p>

<p>Each manager shall:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">act in a way that shall
        serve as an example of good conduct to his or her
        subordinates;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">encourage employees to
        respect the Code and to raise relevant questions and
        issues relating to the Code;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">act in such a way as to
        demonstrate to employees that respecting the Code is an
        essential aspect of the quality of their work;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">in so far as it is possible,
        try to select employees and external collaborators in
        such a way that will prevent assignments being given to
        persons who cannot be relied upon to implement the Code;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">immediately report the
        discovery of any possible deviations from the Code to a
        Senior Manager or to the Guarantor. Likewise, any
        information on possible deviations that is received from
        subordinates must also be passed on immediately to Senior
        Management;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">immediately take corrective
        measures whenever necessary;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">prevent any kind of
        retaliation.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>1.5 Applicability of the code to third parties</b></p>

<p>In dealing with third parties, Eni employees shall:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">properly inform all third
        parties about the commitments and duties contained in the
        Code;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">require the third parties to
        respect the obligations in the Code relevant to their
        activities;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">adopt proper internal
        actions and, if the matter comes within the limits of the
        employee&#146;s own responsibilities, also external
        actions, in the event that any third party should fail to
        comply with the Code.</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">&nbsp;</td>
    </tr>
</table>

<p><b>1.6 Reference, implementation and control functions
(guarantors)</b></p>

<p>Eni has established the function of &quot;Guarantor of the
Code of Practice&quot; with the following proposes and once the
office of the Guarantor has been established, all employees must
be made aware of its purpose and of how they themselves can
communicate directly with it (by telephone, fax, e-mail, etc.):</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to establish criteria and
        procedure aimed at reducing the risk of violations of the
        Code;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to promote the publication
        of guidelines and operational procedures in cooperation
        with offices and departments responsible for their
        preparation;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to organize information and
        training programs for employees aimed at providing a
        better knowledge of the Code&#146;s objectives;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to promote and monitor
        knowledge of the Code inside and outside Eni and its
        implementation;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to investigate reports of
        any violation by initiating proper inquiry procedures;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to inform the Personnel
        Department about the results of any inquiries for the
        adoption of any sanctions;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to inform the relevant
        departments of the results of any inquiries in relation
        to the taking any further actions;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to present the Chairman, in
        conjunction with the Committee for the Code of Practice,
        with proposals for the further dissemination and updating
        of the Code (the Chairman then reports these to the Board
        of Directors);</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to initiate and then
        maintain a proper reporting and communication flow with
        similar departments and bodies in Eni subsidiaries;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to present the Chairman, in
        conjunction with the Committee for the Code of Practice,
        with a yearly report on the implementation of the Code
        inside Eni SpA and its subsidiaries (the Chairman then
        reports these to the Board of Directors).</td>
    </tr>
</table>

<p>In performing its duties, the Guarantor will be aided by the
relevant structures within Eni SpA.</p>

<p>Eni has established the Committee for the Code of Practice to
carry out the following assignments:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to express an evaluation on
        the Guarantor&#146;s proposals for the dissemination and
        updating of the Code;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to analyze the yearly report
        on the Code&#146;s implementation and suggest to the
        Chairman, (who reports to the Board on such matters),
        appropriate actions to prevent any recurrences of
        violations;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">to take action at the
        request of employees in the event of receiving reports
        that violations of the Code have not been properly dealt
        with or in the event of being informed of any retaliation
        against employees for having reported violations.</td>
    </tr>
</table>

<p>Similar structures will be created in all Eni Group companies.</p>

<p>The Eni SpA Guarantor coordinates the activities of the
Guarantors in subsidiaries. After review by the Board of
Directors of the respective sector head companies, a copy of the
yearly report concerning each sector shall be presented to the
Eni SpA Guarantor. The Eni SpA Guarantor shall also receive a
copy of the yearly report of directly controlled companies not
included in any sector.</p>

<p>&nbsp;</p>

<p><b>1.7 Contractual value of the code</b></p>

<p>Respect of the Code&#146;s rules is an essential part of the
contractual obligations of Eni employees as per Article 2104 of
the Italian Civil Code.</p>

<p>Any violation of the Code&#146;s rules may be considered as a
violation of primary obligations under labor relations or of the
rules of discipline, and can entail the consequences provided for
by law, including termination of the work contract and
reimbursement of damages arising from any violation therefrom.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>2. BUSINESS CONDUCT</b></p>

<p>In conducting its business Eni is inspired by the principles
of fairness, loyalty, transparency, efficiency and an open
market.</p>

<p>Eni employees, and external collaborators whose actions may
somehow be referred to Eni, must act correctly when conducting
business in Eni&#146;s interest and in their relations with the
Public Administration, irrespective of the market conditions and
the importance of the business under negotiation.</p>

<p>Bribes, illegitimate favors, collusion, pressures, either
direct or through third parties, requests of personal benefits
for oneself or others, are prohibited.</p>

<p>Eni acknowledges and respects the right of employees to take
part in investments, businesses and other kinds of activities,
provided that these are not related to the activities that such
employees perform in the interests of Eni and provided that such
activities are permitted by law and are compatible with the
duties of being employees of Eni.</p>

<p>In any event, Eni employees shall avoid any situation and
activity where a conflict of interest may arise or which can
interfere with their ability to make impartial decisions in the
best interests of Eni and in full accordance with the Code. Any
situation that may constitute or give rise to a conflict of
interest shall be immediately reported to one&#146;s superiors.
In particular, all Eni employees shall avoid conflicts of
interest between personal and family economic activities and
their tasks within their company. By way of example, conflicts of
interest are determined by the following situations:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">economic and financial
        interest of employee and/or his family in activities of
        supplier, customer and competitor;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">use of one&#146;s position
        in the company, or of information acquired during
        one&#146;s work, in such a way as to create a conflict
        between one&#146;s personal interests and the interests
        of the company;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">performing any type of work
        for suppliers, customers and competitors;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">accepting money, favors or
        benefits from persons or firms that have, or intend to
        have, business relationships with Eni;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">buying or selling of shares
        in Eni companies or in other corporations on the basis of
        important information not in the public domain and
        obtained because of one&#146;s position at Eni. In any
        case, transactions in securities of Eni companies shall
        always be conducted with the utmost transparency and
        fairness with respect to the issuing company and its
        Group, as well as to investors and shall always be such
        as not to generate any expectations, alarm or errors in
        judgment in third parties.</td>
    </tr>
</table>

<p>It is prohibited to pay or offer, directly or indirectly,
money and material benefits of any kind to third parties, whether
public officers or private individuals, in order to influence or
remunerate the actions of their office. Courtesy objects, such as
small presents or hospitality gifts, are allowed only when the
value of such objects is small and does not compromise the
integrity and reputation of the partners and cannot be construed
by an impartial observer as aimed at obtaining undue advantages.
In any case, these expenses must always be authorized by the
designated managers as per existing rules and accompanied by
appropriate documentation.</p>

<p>Employees receiving presents or special treatment that cannot
be directly related to normal courteous relations must inform
their superior of the facts.</p>

<p>External collaborators (including consultants,
representatives, agents, brokers etc.) are required to comply
with the Code&#146;s principles. To this purpose, in accordance
with their responsibilities, employees shall make sure that:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">code principles and
        procedures are followed in the selection of external
        collaborators and in relationships with them;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">only qualified and reputable
        persons and companies are selected;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">all information relevant to
        the selection of particular external collaborators be
        taken into proper account regardless of the source of
        such information;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">doubts on any supposed
        violation of the Code by external collaborators are
        immediately reported to one&#146;s superior or the
        Guarantor;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">an explicit commitment to
        respect the principles of the Code of Practice be
        included in contracts with outside collaborators.</td>
    </tr>
</table>

<p>In any case, the remuneration to be paid shall be exclusively
commensurate with the services to be rendered and described in
the contract and payments shall be made only to the contract
partner and within the country indicated in the contract.</p>

<p>&nbsp;</p>

<p><b>2.1 Relations with customers</b></p>

<p>Eni pursues its business success on markets by offering
quality products and services under competitive conditions while
respecting the rules protecting fair competition.</p>

<p>Eni knows that the esteem of those requesting products or
services is of primary importance for success in business.
Therefore, Eni employees shall:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">follow internal procedures
        on relations with customers;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">provide, with courtesy and
        efficiency and within the limits set in the contracts,
        high quality products that can meet or exceed the
        customers&#146; reasonable expectations and needs;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">provide sufficient and
        accurate information about its products and services so
        that customers can take reasoned decisions;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">be truthful in all
        advertising and communications.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p><b>2.2 Relations with suppliers</b></p>

<p>In the case of tenders and contracts for the supply of goods
and services, Eni employees shall:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">follow internal procedures
        concerning selection and relations with suppliers;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">abstain from the exclusion
        of suppliers that have the proper requirements to bid for
        Eni&#146;s orders, by adopting appropriate and objective
        selection methods, based on established, transparent
        criteria;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">secure the cooperation of
        suppliers in guaranteeing the continuous satisfaction of
        Eni&#146;s customers in terms of quality, costs and
        delivery times, to the extent expected by customers;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">whenever possible and in
        accordance with applicable laws, make use of products and
        services supplied by other Eni Group companies at
        arm&#146;s length conditions;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">respect all conditions
        contained in contracts;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">maintain a frank and open
        dialogue with suppliers in line with good commercial
        practice;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">inform Eni SpA&#146;s
        Department for Industrial Planning and Development about
        any serious problems that may arise with a particular
        supplier in order to evaluate the possible consequences
        for Eni.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>3. TRANSPARENCY OF ACCOUNTING AND INTERNAL CONTROLS</b></p>

<p><b>3.1 Accounting records</b></p>

<p>Accounting transparency is based on the use of true, accurate
and complete information for construing entries in the books of
accounts. Each employee shall cooperate in order to have events
properly and timely registered in the books of accounts.</p>

<p>For each transaction the proper supporting evidence has to be
maintained in order to:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">facilitate registration of
        the accounting;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">identify the different
        degrees of responsibilities;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">provide an accurate
        representation of the transaction so as to avoid any
        errors in interpretation of the facts.</td>
    </tr>
</table>

<p>Each record shall reflect exactly what is shown by the
supporting evidence. Each employee shall make sure, through
accurate filing according to logical criteria, that the
documentation can be easily traced.</p>

<p>Eni employees who become aware of any omissions,
misrepresentations, negligence in the accounting or in the
documents on which accounting is based, shall bring the facts to
the attention of his or her superior or to the Guarantor.</p>

<p>&nbsp;</p>

<p><b>3.2 Internal controls</b></p>

<p>It is Eni&#146;s policy to disseminate, at every level of its
organization, a culture characterized by an awareness of the
existence of controls and a control oriented mentality. A
positive attitude towards control is to be achieved in order to
increase its efficiency.</p>

<p>Internal controls are all those necessary or useful tools for
addressing, managing and checking activities in the company; they
aim at ensuring respect of corporate laws and procedures,
protecting corporate assets, efficiently managing operations and
providing precise and complete accounting information.</p>

<p>The responsibility for building an efficient internal control
system rests on all levels of the organization; therefore all Eni
employees, in their respective functions, are responsible for the
definition and proper functioning of internal controls.</p>

<p>Within their areas of responsibility, managers shall be
requested to become involved in the company&#146;s system of
internal controls and inform employees thereon. Each employee
shall be held responsible for the corporate tangible and
intangible assets relevant to his job. No employee can make, or
let others make, improper use of assets and equipment belonging
to Eni.</p>

<p>Internal Auditors and appointed external auditors shall have
full access to all data, documents and information necessary to
perform their audit activities.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>4. PERSONNEL POLICIES</b></p>

<p><b>4.1 Human resources</b></p>

<p>Human resources are basic components in the company&#146;s
life. The dedication and professionalism of employees represent
fundamental values and conditions for reaching Eni&#146;s
objectives.</p>

<p>Eni is committed to developing the abilities and skills of
each employee so that his or her energy and creativity can have
full expression for the fulfillment of their potential.</p>

<p>Eni offers equal opportunities to all its employees, making
sure that each of them receives fair treatment based on merit,
without discrimination of any kind. All departments therefore
shall:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">adopt criteria of merit,
        ability and professionalism in all decisions concerning
        employees;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">select, hire, train,
        compensate and manage employees without discrimination of
        any kind;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">create a working environment
        where personal characteristics do not give rise to
        discrimination.</td>
    </tr>
</table>

<p>Eni considers the protection of working conditions and the
protection of the mental and physical health of workers to be
part of its entrepreneurial activity, while always respecting
their moral personality and avoiding any undue pressures. To this
end, any personal conduct considered to be offensive and liable
to produce difficulties in relationships within the working
environment will be given due consideration.</p>

<p>Eni expects all its employees, at every level, to cooperate in
maintaining a climate of reciprocal respect for a person&#146;s
dignity, honor and reputation. Eni shall do its best to prevent
the emergence of attitudes that can be considered offensive.</p>

<p>&nbsp;</p>

<p><b>4.2 Harassment in the workplace</b></p>

<p>Eni demands that there shall be no harassment in personal
relationships either inside or outside the company. Harassment
is:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">the creation of an
        intimidating, hostile or isolating environment or
        atmosphere for one or more employee;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">unjustified interference in
        the work performed by others;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">the placing of obstacles in
        the way of the work prospects and expectations of others
        merely for reasons of personal competitiveness.</td>
    </tr>
</table>

<p>Eni does not tolerate sexual harassment, by which it means:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">the subordinating of
        decisions on someone&#146;s working life to the
        acceptance of sexual attentions;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">proposals of private
        interpersonal relations which are repeated despite the
        recipient&#146;s clear distaste and which, because of the
        specific situation, can put the recipient in a difficult
        situation because they entail direct consequences on the
        recipient&#146;s work and career.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p><b>4.3 Abuse of alcohol or drugs</b></p>

<p>Eni demands that each employee contribute to maintaining a
good work environment in respect of the feelings of others. Eni
will therefore consider individuals who</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">work under the effect of
        alcohol or drug abuse;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">make use of or give to
        others any drug or similar substance during work;</td>
    </tr>
</table>

<p>as being aware of the risk they bring to such environmental
conditions, during the performance of their work activities and
in the workplace. </p>

<p>Chronic addiction to such substances, when it affects work
performance, shall be considered similar to the above mentioned
events in terms of the contractual consequences.</p>

<p>Eni is committed to favor the social action in this field as
provided for by collective work contracts.</p>

<p>&nbsp;</p>

<p><b>4.4 Smoking</b></p>

<p>Without prejudice to the general prohibition on smoking in
workplaces where this is dangerous and where such prohibition is
indicated, Eni, in its normal workplaces, will pay particular
attention to the condition of those suffering physical discomfort
from exposure to smoke and who request to be protected from
&quot;passive smoke&quot; in their place of work.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>5. HEALTH, SAFETY AND THE ENVIRONMENT</b></p>

<p>In its activities, Eni is committed to contributing to the
development and welfare of the communities where it operates by
pursuing the objective of ensuring the safety and health of its
employees, external collaborators, customers and local
communities that may be affected by Eni&#146;s activities and to
reducing the environmental impact of such activities.</p>

<p>Eni actively contributes to the promotion of research and
development aimed at protecting the environment and natural
resources.</p>

<p>Eni&#146;s industrial activities shall be performed in full
accordance with all applicable laws on prevention and protection.</p>

<p>Operations shall be carried out according to advanced criteria
for the protection of the environment and energy efficiency, with
the aim of creating better working conditions and protecting the
health and safety of employees.</p>

<p>Research and technological development must be aimed in
particular at promoting the use of products and processes that
are as environmental friendly as possible and characterized by an
ever-greater attention being paid to the safety and health of
employees.</p>

<p>Eni employees, within their areas of responsibility,
participate in the process of risk prevention and environmental
and health protection and safety, that is in their own interest
and in the interest also of third parties.</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>6. CONFIDENTIALITY</b></p>

<p>Eni&#146;s activities require the constant acquisition,
storage, handling, communication and diffusion of news, documents
and other data relevant to negotiations, administrative
procedures, financial transactions, know-how (contracts, deeds,
reports, studies, drawings, photographs, software), etc.</p>

<p>Eni&#146;s data bases may contain, among other things,
personal data protected according to privacy laws, some of which
cannot be made known outside Eni under contractual obligations
and some of which cannot be improperly or untimely disclosed on
risk of harmful prejudice to Eni&#146;s interest.</p>

<p>Employees shall guarantee the confidentiality of all
information acquired in the performance of their work.</p>

<p>Eni is committed to protecting information concerning its
employees and third parties, whether generated or obtained inside
Eni or in the conduct of Eni&#146;s business and to avoiding
improper use of any such information.</p>

<p>Information, know-how and data that are acquired and processed
by employees during their work at Eni or because of their
responsibilities, all belong to Eni and cannot be used,
communicated to others or disclosed without specific
authorization of one&#146;s superior.</p>

<p>Without prejudice to the prohibition to disclose information
concerning the organization and methods of production or to use
such information in a way that could be harmful to Eni, each Eni
employee shall:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">obtain and handle only data
        that are necessary and adequate to the aims of their work
        and strictly related to the tasks being performed;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">obtain and handle such data
        only within specified procedures;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">store said data in a way
        that avoids non-authorized persons having access to it;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">disclose such data only
        pursuant to specific procedures and/or subject to
        specific authorization by one&#146;s superior and, in any
        case, only after having checked that such data are
        available for disclosure;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">make sure that no relative
        or absolute constraint exists on the disclosure of
        information concerning third parties connected to Eni by
        any kind of relationship and, whenever necessary, ensure
        that their consent is obtained;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">file said data in such a way
        that any person authorized to access them may do so with
        as much precision, clarity and truthfulness as possible.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>7. EXTERNAL RELATIONS</b></p>

<p><b>7.1 Relations with public institutions</b></p>

<p>Relations with Public Institutions that are aimed at the
protection of Eni&#146;s interests and related to the
implementation of Eni&#146;s programs, are to be maintained only
by departments and persons specifically appointed to do so.</p>

<p>Specific departments in the Eni Group companies shall
coordinate their work with Eni SpA&#146;s Department for
Relations with Institutions in Italy, and in the European Union,
so as to have a prior evaluation of the quality of the actions to
be taken for sharing, for implementation and for monitoring.</p>

<p>Small presents and courtesy gifts to representatives of
Governments, public officers and civil servants are allowed
provided that they are limited in value and do not compromise the
integrity or good name of either party nor be construed by
impartial observers as aimed at obtaining undue advantages. In
any case this kind of expense must be authorized by the person
indicated in the procedures and must always be duly documented.</p>

<p>&nbsp;</p>

<p><b>7.2 Relations with political organizations and trade unions</b></p>

<p>Eni does not give any direct or indirect contributions in
whatever form to political parties, organizations, committees or
trade unions, nor to their representatives and candidates, except
those specifically contemplated by applicable laws and
regulations.</p>

<p>&nbsp;</p>

<p><b>7.3 Relations with the media</b></p>

<p>Information provided to outside parties shall be truthful and
transparent.</p>

<p>In its communications with the media, Eni shall be presented
in an accurate and uniform way. Relations with the media shall be
maintained only by departments and managers specifically
appointed to do so and all communications shall be agreed upon
beforehand with the Eni Unit responsible for Relations with the
Media.</p>

<p>Eni employees may not give information to media
representatives nor engage in providing any such information
unless they are duly authorized by the relevant Eni departments.</p>

<p>Eni employees are never entitled to offer payments, gifts or
other benefits aimed at influencing the professional activity of
media representatives or that could reasonably be construed as an
attempt to do so.</p>

<p>&nbsp;</p>

<p><b>7.4 Presentation of Eni objectives, activities, results and
points of view</b></p>

<p>Eni employees who are required to present information to the
public concerning the objectives, activities, results and
opinions of Eni on such occasions as:</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">congresses, meetings and
        seminars;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">essays, articles and
        publications in general;</td>
    </tr>
    <tr>
        <td valign="top" width="3%">&#149;</td>
        <td valign="top" width="3%">&nbsp;</td>
        <td valign="top" width="94%">participation to public
        events;</td>
    </tr>
</table>

<p>must be authorized by the highest organizational authority
within their own department for all that relates to texts,
lectures and the lines of action which they intend to make
public; and they must also agree beforehand with Eni SpA&#146;s
Unit for Relations with the Media on the actual content of their
presentations.</p>

<p>&nbsp;</p>

<p><b>7.5 &quot;Non profit&quot; initiatives</b></p>

<p>Eni supports &quot;non profit&quot; activities as evidence of
its commitment to help meet the needs of those communities where
it operates.</p>

<p>Within the framework their respective responsibilities, Eni
employees shall participate in the definition of such single
initiatives in full respect of Eni&#146;s policies and programs,
and they shall implement them according to criteria of absolute
transparency and shall support them as an integral part of
Eni&#146;s objectives.</p>

<p>&nbsp;</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="12.1">Table of Contents</a></h5>

<p><font face="Times">Certifications as separate documents filed
as exhibits</font></p>

<p align="right"><b>EXHIBIT 12.1</b></p>

<p align="center"><b>Certification </b></p>

<p>&nbsp;</p>

<p>I, Paolo Scaroni, certify that:</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">1.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">I have reviewed this annual
        report on Form 20-F of Eni SpA;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">2.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">3.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">4.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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:<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(c)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="4%">5.</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="91%">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):<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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.</td>
    </tr>
</table>

<p>&nbsp;</p>

<p>Date: June 24, 2005</p>

<p>&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td valign="top">/s/PAOLO SCARONI </td>
    </tr>
    <tr>
        <td valign="bottom"><hr size="1" align="left" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Paolo Scaroni<br>
        Title: Managing Director and Chief Executive Officer</td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="12.2">Table of Contents</a></h5>

<p align="right"><b>EXHIBIT 12.2</b></p>

<p>&nbsp;</p>

<p align="center"><b>Certification </b></p>

<p>&nbsp;</p>

<p>I, Roberto Jaquinto, certify that:</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">1.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">I have reviewed this annual
        report on Form 20-F of Eni SpA;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">2.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">3.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">4.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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:<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(a)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="85%">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;<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(b)</td>
        <td valign="top" width="2%">&nbsp;</td>
        <td valign="top" width="85%">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<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(c)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="4%">&nbsp;</td>
        <td valign="top" width="3%">5.</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="91%">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):<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(a)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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<br>
        <br>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
    <tr>
        <td width="9%">&nbsp;</td>
        <td valign="top" width="4%">(b)</td>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="86%">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.</td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <p>Date: June 24, 2005</p>
</blockquote>

<p>&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td valign="top">/s/ROBERTO JAQUINTO</td>
    </tr>
    <tr>
        <td valign="bottom"><hr size="1" align="left" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Roberto Jaquinto<br>
        Title: The Group Senior Vice President for Administration</td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="13.1">Table of Contents</a></h5>

<p>&nbsp;</p>

<p align="right"><b>EXHIBIT 13.1</b></p>

<p>&nbsp;</p>

<p align="center"><b>Certification Pursuant to 18 U.S.C. Section
1350</b></p>

<p>&nbsp;</p>

<p>For purposes of 18 U.S.C. Section 1350, the undersigned
officer of Eni SpA, a company incorporated under the laws of
Italy (the &quot;Company&quot;), hereby certifies, to such
officer&#146;s knowledge, that:</p>

<p>&nbsp;</p>

<blockquote>
    <p>(i) the Annual Report on Form 20-F of the Company for the
    year ended December 31, 2004 (the &quot;Report&quot;) fully
    complies with the requirements of section 13(a) or 15(d) as
    applicable, of the Securities Exchange Act of 1934; and</p>
</blockquote>

<p>&nbsp;</p>

<blockquote>
    <p>(ii) the information contained in the Report fairly
    presents, in all material respects, the financial condition
    and results of operations of the Company.</p>
</blockquote>

<p>&nbsp;</p>

<p>Date: June 24, 2005</p>

<p>&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td valign="top">/s/PAOLO SCARONI </td>
    </tr>
    <tr>
        <td valign="bottom"><hr size="1" align="left" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Paolo Scaroni<br>
        Title: Managing Director and Chief Executive Officer</td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<p>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.</p>

<hr size="1" align="left" noshade color="#000000">

<h5 align="right" style="page-break-before:always"><a href="#toc"
name="13.2">Table of Contents</a></h5>

<p align="right"><b>EXHIBIT 13.2</b></p>

<p>&nbsp;</p>

<p align="center"><b>Certification Pursuant to 18 U.S.C. Section
1350</b></p>

<p>&nbsp;</p>

<p>For purposes of 18 U.S.C. Section 1350, the undersigned
officer of Eni SpA, a company incorporated under the laws of
Italy (the &quot;Company&quot;), hereby certifies, to such
officer&#146;s knowledge, that:</p>

<p>&nbsp;</p>

<blockquote>
    <p>(i) the Annual Report on Form 20-F of the Company for the
    year ended December 31, 2004 (the &quot;Report&quot;) fully
    complies with the requirements of section 13(a) or 15(d) as
    applicable, of the Securities Exchange Act of 1934; and</p>
    <p>&nbsp;</p>
    <p>(ii) the information contained in the Report fairly
    presents, in all material respects, the financial condition
    and results of operations of the Company.</p>
</blockquote>

<p>&nbsp;</p>

<p>Date: June 24, 2005</p>

<p>&nbsp;</p>
<div align="right">

<table border="0" cellpadding="0" cellspacing="0" width="40%">
    <tr>
        <td valign="top">/s/ROBERTO JAQUINTO</td>
    </tr>
    <tr>
        <td valign="bottom"><hr size="1" align="left" noshade
        color="#000000">
        </td>
    </tr>
    <tr>
        <td valign="bottom"><br>
        Roberto Jaquinto<br>
        Title: The Group Senior Vice President for Administration</td>
    </tr>
</table>
</div>

<p>&nbsp;</p>

<p>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.</p>
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